The critical first step in the home buying process today is the pre-qualification/pre-approval process. Home sellers should be very selective when considering which buyer’s offer they will accept when they have multiple offers to choose from. The only thing worse than no offer, is selecting the wrong offer based on a meaningless pre-qualification letter!
The truth is most pre-qual letters only mean that the lender has pulled a credit score on the potential buyer and the credit score meets the minimum score requirements. This is simply the first hurdle in the total mortgage loan underwriting process. Lenders issue “pre-qual” or “pre-approval” letters every day based solely on a credit score only. The language in their pre-qual letter goes something like this: (more…)