When you're preparing to buy a house, it's obvious that you should negotiate from the best possible position. In a hot real estate market, it's not uncommon for buyers to have to compete for the home they want, giving the seller the opportunity to pick and choose which buyer to negotiate with. As a result, it's critical that you take advantage of your own advantages to guarantee that your offer is the one that the Seller accepts.

By approaching the process incorrectly, the vast majority of Buyers put themselves at a significant disadvantage.

When you examine the procedure from the Seller's point of view, the point becomes evident. If you were selling your home and faced many offers, you would clearly prefer the offer that included a Certificate of Financing Approval over the other offers that were conditional on financing. In the first situation, the buyer is certain to have the financial means to purchase. There isn't in the second situation. When seen in this light, it's difficult to understand why so many buyers wait until after they've found a property to start looking for financing. Regardless of whether the majority of people will be accepted in the end, the timing of receiving a Certificate of Financing Approval is critical. When you present this document with your offer, it gives the Seller authority to accept your offer ahead of others who do not have this specific approval.

However, there are financial benefits to you as a Buyer as well, because starting the process early allows you to acquire a clear grasp on borrowing rates and closing fees, as well as prevent putting yourself under any time limitations that would compel you to overpay.