Cape Coral Home Buying Process
Tip for Home Buyers: The Number One Way to Lose the Home of Your Dreams
Whether you are looking to purchase a Cape Coral home for your primary home, an investment property, or to join the ever-growing group of snowbirds who enjoys Southwest Florida as a winter retreat, you certainly don't want to lose your dream home after you've put in an offer.
Just picture it. You decided on your price range, square footage, location, and compared at least half a dozen Cape Coral properties. You finally found the one that exactly fits your specifications, make an offer and...the home is sold right out from under you. Wait, no...That's not the way the story is supposed to end, is it? Unfortunately, there is one top reason why this occurs. Want to prevent this scenario from happening to you? Keep reading...
Understanding the Cape Coral Home Buying Process...No, REALLY Understanding
The home buying process is pretty simple and straightforward, when you understand how it all works together. Here's a breakdown of the steps, along with the reasons "why" the steps are there.
Gathering the Necessary Information to Qualify for a Mortgage
Believe it or not, this is the number one reason most potential buyers we have encountered lately have lost the home they really wanted. It's not that they don't have the finances, actually, that would be okay. So, you thought you could buy the home and it turns out you can't really afford it. But instead, many home buyers and investors who have the funds fail to take the time to gather the necessary information and the seller ends up taking another offer. Frustrating? Yes, but completely avoidable! Here's how:
- Financing Your Cape Coral Home or Property - If you plan on financing your new Cape Coral home, you'll need a letter of pre-approval. This is different than prequalification. Prequalification just means your potential lender has taken your information "at your word" and provided you with a rough estimate of your lending capabilities.
On the other hand, a preapproval letter means that you've actually applied for the loan, all your credentials have checked out, and your funding is secure. If you will be financing your home, a letter of preapproval is vital. Why? It shows the seller you are serious about purchasing a home, so, when your offer is on the table with other potential buyers and YOU have a letter of preapproval, you have the upper hand. Your offer is much more likely to be accepted.
- Cash Buyers - If you plan on paying cash for your property, you will still need proof of funds. Just because you are aware of your net worth and your available funds, doesn't mean a thing to the seller. You will need to produce one of the following documents:
1. Original bank statement
2. Open equity line of credit
3. Certified financial statement
4. Online banking printout
5. Copy of your money market balance
Seems like a pretty simple reason to lose your dream house, doesn't it? When you are busy searching for a home, you may not always think of this part, especially if you know you have the financing. Remember, in order to increase your bargaining and negotiating power and to have the best chance of your offer being accepted, give the seller peace of mind by providing proof of your finances or a pre-approval letter.
Additional perk? You'll enjoy a faster closing period (which again, strengthens your buying power). If you are ready to begin searching for your perfect Cape Coral home for sale, give us a call today. We'll be happy to assist you, and we'll make sure your dream home doesn't get away!
By David Sporleder | Sporleder-Ray Realty Group | firstname.lastname@example.org| Google+