Pre-approval Tips

Use your pre-approval letter strategically

It’s usually smart to stay a little demure when making an offer on a home. Most of us were taught to act cool when buying a car so we don’t overpay, and the same idea applies when buying a home.

The pre-approval letter you submit with an offer doesn’t always need to show your full buying power. You can ask your lender for a letter that lines up closely with the price you’re actually offering, rather than sharing your top limit.

Every situation is different. In a multiple-offer scenario, it can make sense to submit a higher pre-approval letter that reflects the amount you’re truly willing to go to, so your offer stands out. You typically submit one pre-approval letter with an offer, so it’s worth discussing options with your lender, whether that’s having a few versions available or requesting a letter tailored to a specific offer.

As the saying goes, you make money when you buy, not when you sell. Magnolia is here to help you purchase a home you feel great about from the very beginning.