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| 'Pre-Qualified' or 'Pre-Approved?' |
By:
Louie Frias |
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Before any professional real estate agent or broker even LOOKS at you, they're going to want (Nay require) you to have your financing already in place. The seller they represent, whether that be an individual, couple, bank, trust, or investor, your offer WON'T even be looked at without a letter from a lender. That means, bank, mortgage banker, mortgage broker, credit union or other acceptable source of funding. (Trust funds, annuity, insurance settlement, etc.)
Which brings us to the answer to the question: "Pre-Qualification" or "Pre-Approval".
Best answer for you to be taken seriously - Pre-Approval trumps ALL other forms. This means you've actually APPLIED for and received loan approval. It means a formal application and all supporting documentation relative to your job, residence and savings have been verified. It means your full credit report has been retrieved and analyzed by an underwriter for layers of risk associated with carrying a mortgage. In essence, it means you have a "credit card" with a predetermined limit. It means you are a "cash buyer". It means, you've done your homework and are considered GOLD in the eyes of anyone you present an offer to purchase to. You have reversed the tables and are now in control. NOT the seller, NOT the agent and NOT anyone else. You have the "thing" everyone wants. When you have what everyone wants, you're the boss.
So, what then is "Pre-Qualification"? AKA a "PQ".
Toilet paper. Garbage. Refuse. $1.00 a gallon gasoline.
A PQ is nothing more than a piece of paper issued by who knows, which states you've been interviewed by a "lender" or "Loan officer" and they've looked at your income and you've told them of your expenses and based on their calculations, you qualify for a loan of "X" dollars. No credit report. No job or savings verifications. No professional underwriter.
So, if you're serious about buying a home, which should you have in your hand?
If you're a home seller, which buyer are you going to take seriously?
If you need to learn more about home mortgages, log on to: http://www.MortgageSelfDefense.com
About the author:
http://www.mortgageselfdefense.com/aboutme.html |
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