Why give a pre-qual letter if it doesnt mean the Buyer is approved
By Scott Godzyk, One of the Manchester NH's area Leading Agents
(Godzyk Real Estate Services)
Why are Buyers given a pre-approval if they were not actually approved for a loan asked a Manchester NH area home seller? The CONFUSION starts that they actually got a "PRE-QUALIFICATION" Letter and not a pre-approval. Many buyers and sellers are confused by the two terms. This sellers sale fell through because the Buyer could not get a mortgage and had a generic pre-qual letter from an Internet mortgage company that wasn't worth the paper it was printed on. A pre-Qualification usually only looks at the buyers credit score and uses what the buyer states their income and debts are. It is contingent upon a formal application and verifications. A GOOD listing agent not just requires a pre-qual letter, but will check to make sure it is real and to what depth they verified the buyer can ge...
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