A complete
stranger (buyer) is asking you to take
your property off the market for at least the
next two to three weeks while they apply
for a loan. As the seller, let's consider
the type of buyer you'd prefer to deal with.
1.
Neither pre-qualified nor pre-approved This
buyer provides no evidence that
they can afford to purchase your
property. You may wonder how serious
they are since they're not at least
pre-qualified.
2.
Pre-qualified This
buyer met with a mortgage broker (or
lender) and discussed their situation.
The buyer informed the broker regarding
their income, expenses, assets and
liabilities. The broker may also have
seen their credit report. The buyer
provided you with a letter from the
broker stating an opinion of what the
buyer can afford.
3.
Pre-approved This
buyer provided a broker or lender written
evidence of income, expenses, assets, liabilities
and credit. All information was verified by
a lender. As a result, much of
the paperwork for this buyer's loan
has been completed. This buyer will probably
be able to close quickly. They
provided you with a letter (pre-approval
certificate) from the lender.
You're
as certain as possible that this buyer
can close.
As
a potential buyer, you can see that being
pre-approved will give you the best
chance of getting your offer accepted.
This is critical in a competitive situation.
Questions?
LendFast.com - Should you be preapproved or prequalified?
