Pre Approved Buyers are  Often Considered Better Than CASH Buyers In Todays Market.   Here Are Reasons Why:

  1.  CASH BUYERS –  If you intend to purchase a property for all cash, you will want to submit a Verification Of Funds (VOD) with your offer to let sellers know you are serious buyer.  Due to a recent increase in “false cash buyers” sellers and sellers agents are sometimes cautious with cash offers, and are likely to chose a buyer with a pre-approval for a loan over a cash buyer.  Rather than to be offended when asked for a VOD, it is better to produce one if you are serious about purchasing.   Here is the reason why –
  2. FALSE CASH BUYERS –  are often pretending they have cash to tie up properties.  There are many seminars teaching unqualified buyers to tie up properties using a false “Verification Of Funds” (VOD).  Certain companies provide VOD’s to buyers for a small fee and the buyers use them to tie up properties.   Some such buyers are hoping to flip your home in escrow, or to find an investor while they have it tied up.   They often don’t close after tying properties for a long time, which is painful for them as well as the Seller.
  3.  CASH BUYERS OFTEN LOSE OUT WHEN MULTIPLE OFFERS – Unfortunately, because the recent increase in false VOD’s, Seller’s and selling agents are cautious with cash buyers, causing real Cash Buyer’s to miss out.
  4. IN TODAYS MARKET PROPERTIES LISTED NEAR OR BELOW MARKET SELL FAST, OFTEN WITH MULTIPLE OFFERS –  Seller’s don’t have time to investigate, so, will often go with the safest offer, rather than the highest price offer.  It takes too much time, especially on a weekend to verify whether the VOD is real, or not, which is why it is better to have a pre-qualification letter or approval, reserving the right to pay all cash.
  5. THE BUYER WHO IS PRE-APPROVED WITH A “LOCAL” “REPUTABLE” LENDER OFTEN GETS THE SELLER’S ATTENTION MORE THAN OTHER OFFERS – In todays competitive market, Seller’s and their agents want to go with the most reliable source of information when making their decision for accepting an offer.    Here are some links to lenders.