Questions Real Estate Agents Are Frequently Asked - Pre-Approval

Welcome to the world of real estate. It seems everywhere you turn this year, it’s a topic of conversation. Everyone knows a family member, friend, or neighbor who has either lost out on multiple houses in a bidding war or received an offer far over list price. This season has brought my clients both excitement and frustration resulting in both happy and sad tears, and along the way, I’ve learned patience and keeping a level head in what seems like utter chaos will win every time.

Is a pre-approval REALLY that important?

YES, YES unequivocally YES. We require a pre-approval or the ability to supply proof of cash funds prior to scheduling showings. I hate to be blunt but looking at houses without either is a waste of everyone’s time, yours, the sellers, and agents alike. Clients spend months and months searching
for homes to buy online and quite often as soon as they find the ONE they want to see, they find out they are not qualified to buy the house.

With the rise of interest rates, affordability and a pre-approval is even more crucial. What you may have been approved for 6 months ago may be a distant memory. You may have heard the line this year “Marry the house, date the rate” and that is SO true! Over the last decade, it has been a fixed-rate world and that has now changed. Do you know the average homeowner is only in their home for 7-9 years? Now is the time to look at longer-term adjustable rate mortgages where you may be fixed in at 7 or 10 years and adjust thereafter. The greatest thing about arms is that you will have a lower rate now (which may be the key to qualifying) than a fixed rate and without a pre-payment penalty, you do have the ability to refinance anytime the rates dip.

Even with the uptick in rates, we are still in a competitive sellers’ market and it is anticipated this will remain so for the next 18-24 months. Writing a clean offer will continue to be key and there is often not time to view a home and then contact your lender for a pre-approval as there may already be offers on the table waiting to be presented. Pre-approval letters or proof of cash funds should be part of the initial offer for an even playing field with financing.

We would love to continue the conversation with buyers who are thinking of new housing options within real estate. With the world seeming to be topsy-turvy now, having a trusted and straightforward real estate professional to guide you in the right direction is even more crucial than in years past. Please reach out with questions of your own and visit www.denaligroupwi.com to start your search!

Allison Quartuccio, SRS, SRES, ABR, PSA is a Senior Real Estate Specialist, a Seller Representative Specialist, an Accredited Buyer Representative and a Pricing Strategy Advisor through the National Association of Realtors®. She is a Five Star Real Estate Agent award winner in 2022 and
AIOREP's 10 Best Real Estate Agent for Client Satisfaction Award. She was honored with the Milwaukee Journal Sentinel 2020 Top Choice Award for Real Estate Agent and is a Certified Top Producer by Best Agent Today.

Denali Realty Group is celebrating its 11th year in business this year. For more information, contact Allison Quartuccio at 414-380-7113, email at allison@denaligroupwi.com. Denali Realty Group is located at 127750 W North Avenue, Suite C, Brookfield, Wis. 53005. www.denaligroupwi.com The Denali Difference.