The difference between a Pre-Approval and a Pre-Qualification letter.

Randy.... stress?  What would this job be like without stress?  ;o)  Seriously, it would be very nice if less stressful. Thanks for stopping by and for your feedback.

Benjamin.... thanks, I truly appreciate that. Wait for my next rabbit.  I do appreciate the comment..

Perrin.... thanks for the polite words. And as you mentioned about who to work with, I included a few links in regards to picking your lender. 

In regards to being an outside lender and not knowing the local market or knowing the appraisers, title people, etc etc. In my opinion, this is not always true.  There are some loan officers as myself, that build a very good network and surround ourselves with good people, even out of state. About 20% of my clients are from Florida and I have never missed a settlement date. I try to be all over and it can be done... and work for some. I know what you are saying. But this is one thing that I try to get consumers and realtors to think about and consider. The proof is in the pudding, but you need to take that step and try that person. Just my .02.

Thanks for your input. 

Michael....  this is so true, as the market adjusts. But a very good loan officer is going to have multiple back ups and or know where to turn if something goes array last minute. Sure, it won't always work, but it can be accomplished with the right mind frame. And thanks for the compliment.

Sally.... where did this come from?  Stress?  Or are you carrying this over from your previous blog?  ;o)

Terry.... thanks for that compliment and I'll take a look at your link. 

Overall, thanks for your reinforced feedback and input. But the guarantee stuff... I am very good at for the most part, even prior to closing and funding, no matter how the market is. The only thing that would have been negative was the 100% loans with a 580 score. But my way out... these lenders still gave people 2 weeks to close on these types of deals. If you take a good application, that is usually the length of time that is needed to close on a deal anyhow. Just having your ducks in a row.

Perrin.... I wasn't saying that you were talking about me either. I was just generalizing on how I work. That I can work just as efficiently locally as I can 4 states away. As long as I have prepped myself with my so-called circle of networking relationships... aka realtors, appraisers, and title people. ...which I have done in several states. I take that part seriously. That's all that I was trying to explain.  Thanks for clarifying this though. 

dominick....  thanks for stopping by and for the compliment & comments. But curious, in regards to your last statement. We will still give pre-approvals even without a contract. This is key and important....

Terry.....  you make some valid points. But I guess I need more info in regards to the example with the credit score issue. How long was it when credit was pulled and the commitment issued? And when was it going to close?

Ann.... cheated?   sorry....  ;o)   As I told someone else, this has happened to me a few times. I had a great idea one day and didn't get to it for a few days. Next thing I know, the exact topic that I was thinking about, was even featured.  Yes, great minds think a like... thanks for stopping by.

Brian.....   thanks for the compliment and I hope this helps your realtor.

And we need to educate the consumer on this, because so many think they are approved when they talk to a loan officer the first time. Or is it because so many lenders mislead the client... to get them in the door?

TERRY......  how low was the credit score?  What percentage were they putting down?  That is why I couldn't be a broker.... I want full control and a company that understands that credit doesn't need to be pulled again, in the middle of the process. Credit is good for 90 days and 120 for new construction.

EDDY....  thanks...  so for the delay in responding... hope all is well.

GAIL......  my pleasure.... so many people get the two confused and many lenders let their clients believe that they have been pre-approved, when they have hardly been pre-qualified....   I always introduce myself to both agents, telling everyone that anyone can call me. I have nothing to hide.

TERRY.....  just curious, did you even look at FHA at that moment?  Were you approved FHA at that time?  10% down and those credit scores?  if they had decent credit for the last 12 months, not perfect...  it sounds like it would have closed with a FHA loan.  Sure, I would need to know more, but not much more..

TERRY......  kind of what I figured, because it sounded like a FHA deal, especially with 10% down and those scores.  And yes, if FHA approved, she stil might be in business.

DOMINICK...... well, I rarely ever do that Dominick.  And most of my loans are FHA loans and 98% of them I know would be refer/eligibles.  It's because I know what I am looking at and I know what my undwerwriters would except.  

So, you are telling me that if you don't get an approval, then the loan is not qualified and possibly dead? Just curious....  in my 16 year career, I have only had 2 loans denied and one was actually after putting a loan in DU. The convnetional guidelines on my community changed a week later....  once they found a house, we re-ran it and it was not approved. You can always hang your hat on an approval from the system, not on conventional loans in the market.  Just my opinion.

RICHARD......  yes, I am amazed also... but you know what, I blame a lot of this on the loan officer though, for not explaining this in detail. I give my clients a pre-qual letter once I qualify them.  Many loan officers don't do this until the realtor asks for it.... so, put yourself in the consumers shoes. Would you know the difference?