"I’VE FOUND A HOUSE THAT I REALLY WANT TO BUY, BUT THE AMOUNT I’M PRE-APPROVED FOR IS SLIGHTLY LESS THAN WHAT THE SELLER IS ASKING. DO I HAVE ANY OPTIONS? OR SHOULD I KEEP LOOKING?"
The answer to that depends on how much less you’re pre-approved for. If the home is truly out of your price range, you really should move on and look for a home that you can afford. However, if the difference between the seller’s asking price and what you’re approved for is a small amount, there are several possible ways to close that gap, including:
• Working with your lender to increase the amount you’re approved for.
• Putting down a larger down payment.
• Negotiating with the seller to lower the price.
Before you do anything else, though, you should talk to your broker. Although it may not always be feasible, some borrowers are able to get approved for a larger amount, especially if the difference between the pre-approval and the asking price is minimal. A pre-approval is not necessarily set in stone, so definitely touch base with your broker. Also, make sure you bring your real estate agent into the loop so that they’re aware of the situation.