When money speaks, sellers listen. In a competitive real estate market,
qualified buyers with the financial ability to complete a purchase are
invaluable to sellers.

Under the laws of supply and demand, too few buyers means heavier than
normal competition among sellers to attract those buyers. Conversely, buyers
can increase their value to sellers through careful financial planning and
positioning. The more financially qualified the buyers, the stronger their
bargaining position with sellers.

What can buyers do to improve their financial picture? First, they can
conduct a thorough assessment of their situation by creating a detailed,
accurate financial statement. This includes an itemization of all assets,
i.e. cash, IRAs, stocks & bonds, mutual funds, personal possessions, autos,
etc. Next, a complete list of outstanding debts is created, including
creditors' names and addresses, amounts owed, monthly payments, remaining
terms and account numbers.

The next step, called a prequalification interview, involves meeting with
the loan officer of a mortgage company. By providing complete information on
income, employment, financial position and credit history, it is possible to
obtain a conditional loan commitment before ever beginning the home search.

The loan officer will explain details of various mortgage plans available,
finding the best loan route for buyers to take. A maximum loan amount can
also be determined, giving buyers advance knowledge of the price home they
can purchase.

Most importantly, advance loan approval allows buyers to look for a home,
confident in their ability to make a purchase from a position of strength.
Sellers also benefit from this preplanning, since qualified buyers can
provide assurance of their ability to complete the sale. With the
possibility of loan rejection out of the picture,
everyone is a winner.