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Buying Property In Arizona You Need To Have A Completed “Pre-qualification Form” or “Proof of Funds”

Mar 16

filed under: Real Estate

Mortgage-Application.jpgI don’t know how it works in other parts of the country, but if you are a “serious” buyer looking to purchase property in  Arizona you will need a completed “Pre-qualification Form” from a mortgage broker/lender if you plan on financing OR if you are a cash buyer you need to have “Proof of Funds” documentation showing that you can actually come up with the cash to pay for the property. Either way you need to know that you will be asked or often “told”  to present one or the other when submitting an offer.

Once again, as I have done in past blogs, I need to use the words I’m sorry. Here is what I am sorry about this time. I’m sorry, but as an exclusive buyers agent, I cannot put you in my car and take you out to see properties unless you have a completed Pre-qualification Form from a lender or that you can verify to my satisfaction that you have Proof of Funds to purchase a property. Well I could, but I won’t because from my point of view, in all likelihood, it would be wasting my time and yours.

The reasoning behind my decision is that I need to know that you are really qualified to buy the properties you want to see. Now don’t get me wrong, if you have made arrangements with me in advance to “schedule a tour” of a specific area, to help you determine that your may want to live in that area, no problem. I even have a link on my site for scheduling a tour. In this case we have an understanding that this is a “tour” and we are not going to spend the day looking at properties.

As an exclusive buyers agent, I spend a lot of time verifying the status of properties, scheduling appointments with home owners and mapping out routes etc. Gas is going through the roof and yes there is the expense of wear and tear on my car. Guys I love what I do, I love representing buyers, but this is also how I make my living.  My time needs to be spent with buyers that are serious about finding a property and are prepared to make an offer when they find the right property. My buyers have their “completed” Pre-qualification Form or Proof of Funds documents available when they are to pull the trigger.

As a buyer you need to be aware that you are not alone in your search for the really good deal. For that reason you need to be prepared to act quickly when we find it for you. Getting pre-qualified after you find the right property is just not going to fly in our market.  The good deals are not waiting on anyone. The new “Pre-qualification Form” that most sellers will require to accompany your offer is not just a matter of pulling your credit score. You will need to provide specific documentation to a lender for them to verify that you indeed can afford to buy XYZ  property for XYZ amount. If you don’t have a lender we are happy to provide you with some referrals.

For those of you that are cash buyers and you are buying in this market for the first time, you have a lot of competition. The investors ARE HERE and are writing offers on everything they can get their hands on that they think is a good deal. They have their “proof of funds” at a moments notice.  Again, and I cannot state this strongly enough, the majority of sellers will require a cash buyer to have Proof of Funds attached to your offer. Proof of Funds can be copies of bank statements, letters of credit, a letter from your lender, investment documentation etc.

Bottom line guys, no matter what you are reading in the papers either here or back home, there is strong activity in our  Arizona  market. You don’t want to lose out on a property because you were not able, to present yourself as a qualified buyer in a timely manner.  If you have made the decision to buy a property in Arizona, you need to “show me and the seller the money”.

Written by Howard Harris