The other day I was working with my realtor & she asked me, "So are my clients pre-approved yet?"  I told her no, they are pre-qualified & I'm waiting for their documents to get them pre-approved with my lender.  And I started thinking to myself then, why am I working my butt off getting real pre-approvals? Why do I find myself over & over & over again explaining the difference between pre-approval & pre-qualification?  Why? Why? Why?

I mean think about it.  When I worked for Countrywide, no knock on Countrywide or the branch I worked for, but I didn't see not one person actually go over the underwriter & ask for a real preapproval.  When I worked at the small broker shops, I NEVER saw anyone actually submit the deal to the lender before they had a contract.  But everyone was told they were preapproved. 

When it comes down to it, it is an unfair advantage if you are saying the deal is pre-approved when it really isn't.  I mean let's face it, there are certain clients that are slam dunks.  You the guy I'm talking about.  The one with 800 credit scores, 50% down, on the job for 10 - 15 years & has no debt.  But how about the rest of them?  It takes considerably more time to get them pre-approved. 

Well I'll continue to do it & continue to explain because you know what?  I'll always have repeat business.  I will ask something from every realtor who reads this post though.  Please ask  demand that your lender be honest & tell your clients the difference. In the long run it will help all of us to continue to have smooth on time closings!