Why is my Pre-Approval process different?December 21, 2018

During the past 31 years, which may or may not be my entire life, Reno has undergone quite the transformation.  It has been really exciting, especially in the last 8-10 years to see all of the growth and the culture that has resulted from it.  This is what makes new buyer leads so exciting for me.  I don’t start with pulling their credit and checking their income to generate a basic pre-approval.  I start with educating them on our local market.  I show them the data for Washoe County including the historical rates of appreciation, the current employment numbers, local housing supply and the projected rate of growth for our area.  This information is really key in understanding why this is such a great real estate market to invest in.

After I’ve shown them this information, what we’ve dubbed “the real estate report card,” I ask them what their current rent is and look up that home.  I will then generate a buy versus rent analysis for the home they are renting.  I can show them that by purchasing the home, they would be locking in their biggest expense – housing.  We’ll look down the line 9 years and see what the projected rent would be for that same house.  Most people don’t like that number.  Purchasing a home is your built-in protection plan against inflation.

The next step is to show them the financial opportunity buying versus renting presents.  I combine the equity that would be gained from amortization (just making their payments and having a place to live) and the equity that would be gained from a really conservative rate of appreciation.  This is where prospective buyer’s eyes light up because they now understand: this is more than finding a cute house in their ideal neighborhood.  This is an opportunity to accelerate their financial goals.

Finally, we get into the credit pull and income qualification.  We go a step further and pre-underwrite their loan so that they can make really strong offers.  We’ll spend the time they are searching for home comparing different loan programs so that they don’t just get loan approval and close on time, they get a mortgage that lines up with those very important financial goals we discussed back at our first meeting.