So, Let's Just Go Ahead And Talk About Lender Pre-Approvals

There is an old thing called a pre-qualification....and a term we've used as well called a pre-approval.

This, I presume you know, is related to a lender saying you can get a loan to buy a home.

But, there are significant differences between those two terms.

I could just put the picture up and stop writing, but it's important to know why the pre-qualification has gone away for us Realtors.

Why? Because it doesn't mean anything to us, the ones that are hired by people to sell their home.

Without a lender looking at your credit report, your tax returns, your income verification, bank statements, W-2's, etc......you just giving them numbers is only the beginning. Only a pre-qual. It only tells you, the buyer, what you may feel comfortable spending.

It does not tell a lender, that you're hoping to borrow a large sum of money from, if you truly will pay it back. If the risk they are taking is worth it. Yes, lend someone a 1/2 million dollars or more, that's a risk for sure.

So, when you're looking to buy a home, you must get a full documentation pre-approval. Too many things that a buyer may have forgotten, doesn't know matter, didn't realize it was on their credit report. Or maybe the words the lender they talked to about a pre-qual, didn't quite make sense, and they didn't think the co-borrowing they did for their sister last year that she defaulted on was important.

Lordy, that stuff is sooooo important. And, with over 50% of Sellers requiring a pre-approval just to view their home during Corona Virus? Yup, get the right 'PRE', not the qualification, the approval.

Fab Friday to you!