What’s the difference???

There are three types of home-sales that require you to be Pre-Approved.

• • REO’s (home foreclosures)
  • Short Sales (sale price is lower than the sellers mortgage payout)
  • ‘Relos’ (homes being sold by a seller’s relocation company)

Add to that, ordinary home sellers who are now refusing to even consider an offer if the buyer can’t also produce a pre-approval letter from his lender.

What is Pre-Qualification?

The pre-qualification process is quick and efficient. It is pretty much based on the information given to a lender by a buyer. It’s good for evaluating your debt to income ratio and gives you a good idea of how much mortgage you might qualify for.  But it is not adequate if you are lucky enough to stumble upon a terrific foreclosure, short sale, or Relo. So if you are a serious home buyer, take the extra step. Get Pre-Approved.  .

What is required for Pre-Approval?

It starts with pre-qualification, but the lender will also pull your credit report, and he will most likely ask for –

• • Most recent pay stubs
  • Full copies of the last two years income tax returns
  • Last 2 bank statements

How is Pre-Approval different than Final Approval?

For final loan approval, be prepared to produce even more documents such as divorce papers, child support, etc. The lender will also obtain written verification of employment and any other documents he requires. But this usually comes later – after we are in contract on a home.

Right now we just need to convince a home seller that you’re a viable buyer with a Pre-Approval Letter from your lender. Call me if you need a referral to a loan officer who will give you prompt, confidential service.

For more information about buying a home fill out the information below to be provided the names of lenders I have worked with and can recommend.