Getting Pre-Approval For A Mortgage

Posted by Steve Vincent on Oct 19, 2013 9:39:21 AM

In Buyers, mortage, pre-approval, pre-qualification, Sellers, underwriting, Caliber Home Loans, Loan2Go

I just heard an amazing report on a nationally syndicated business broadcast. They said that due to cost concerns many banks had ceased issuing pre-qualification letters, or maybe more accurately, that they were not interested in the pre-qualification process in general. That seems odd. Isn't that the first step in 'selling' a mortgage product? Isn't the consumer better served to be pre-qualified? Well, whatever. I know better than to try to figure out banks!

You won't be surprised to hear that we are moving in the exact opposite direction. We believe that there are multiple advantages enjoyed by a buyer who earns a pre-approval status. Just to be clear, I did not say pre-qualified - I said pre-approved. There's a big difference. Pre-approval means you are approved for a loan pending only property conditions. You can shop knowing that your loan is secure!

Most folks don't really understand the difference between pre-approval and pre-qualified, but whether you are buying or selling a home you should. In my experience a letter of prequalification is hardly worth the paper it's written on. Your loan application, or file, has not been submitted to credit underwriting and nothing is assured.

As a buyer wouldn't you want to know that your application has been underwritten? That the only conditions standing between you and your dream home are property conditions - appraisal, clear title, etc? Wouldn't you want to be sure you were shopping in the right price range? That you weren't wasting your time?

As a seller wouldn't you look favorably upon an offer that comes with a pre-approval certificate? Wouldn't that make you more comfortable and maybe even more negotiable?

Well guess what? Just when the industry seems to be moving in the exact opposite direction we have partnered with our preferred lender, Caliber Home Loans, to bring you our Loan2Go program. Now, Caliber Home Loans will take you through credit underwriting before you go shopping for a home or make an offer. While others say, "you can't get pre-approved for a loan without a contract" we say, "yes you can."

With a Loan2Go pre-approval certificate you will negotiate from a position of strength and could save thousands of dollars. You will also save time and worry as any issues can be resolved up front and you can shop with confidence.

Call us today at 336-790-5210, and we'll get you set up with a Loan2Go Pre-Approval certificate and then help you find just the right home!