Let's go over this one more time.  If you are a potential buyer in LA County, well priced properties continue to sell quickly, some in multiple offers and for more than asking price. 

If you are looking for an overpriced home, you don't need to be prequalified as you won't be competing with other buyers.  The prequalified buyers will be making offers on the deals that you are missing out on;  It's that simple.  If you were selling your home today, why would you accept an offer from a buyer who is not prepared to close? If they were prepared, they would have talked with a lender and taken the necessary steps. Lending guidelines are in a constant state of flux.

.... oh, and if you think your offer might be all cash... smart listing agents will ask for evidence of the cash - every last penny of it and closing costs too, but, why pay cash with interest rates this low? 

 

 Just in from Floyd Walters, owner of BWA Mortgage:

………”out there in credit markets today there is a little chaos…..and its time to bring some sanity to a nervous and unsettled world.
 
To do that, I would like to make some simple but I hope real and practical suggestions if you are seeking credit today.

Fact #1:   Have patience.  For those of you, who have heard this before, continue to have patience.  Most home loans are still being approved, the process is just different.
 
Fact #2:   Be pro-active. This does not eliminate Fact #1 but goes hand in hand with it.  For example, even though you have an 800 FICO score, 30% down payment, and make plenty of money, don't just assume your loan will be approved seamlessly.  Get together with your lender well in advance of your need for money; I would suggest 90 days or more if you can.  Give them time to work with you to meet your goal and solve little problems along the way.
 
Fact #3:   Be prepared for the unexpected.  Fannie Mae and Freddie Mac, who buy up most of the mortgages made today, are holding every lender to a much higher standard than ever before.  Even though a loan makes sense on the surface, a new twist is Fannie Mae and Freddie Mac are making lenders repurchase loans if technical aspects of the loan are not met.  For this reason, more than any other, lenders are asking for every "t" to be crossed and every "i" to be dotted.”

As always, sound advice from Floyd.  If you are a buyer looking for a deal you will not find one without first being prepared and prequalified.  Call Floyd or contact the lender of your choice, but get started.  Desirable properties are selling quickly and not to those who are have not made the effort to become prequalified.