Why Loan Pre-Qualification Isn't Good Enough

Utah Homebuyers should be Pre-Approved BEFORE they make an offer.

We strongly recommend that all our clients get Pre-Approved for a mortgage so they know in advance exactly how much you can afford and that their loan will go through. It also adds credibility and strength to their offer and is a powerful card in negotiations.

Not Pre-Qualified, PRE-APPROVED.

Pre-Qualified only means that the Buyer knows what the price of the home is and what the payments would be. This does not mean that a Lender is willing to lend them that much money to buy a home. Lenders have guidelines they need to follow in order to lend money.

Pre-Approved means your credit has been checked and your loan has been approved with some normal conditions (such as appraisal, no change in employment, etc.).  The lender has evaluated you as a Buyer in accordance with their guidelines and sees no immediate concerns with lending you the money to buy your new home.

In Utah, it is becoming more the norm for a Seller to ask for a letter of Pre-Approval to accompany all offers.

In a multiple-offer situation, the difference could determine whether or not you get the home.

If you are only Pre-Qualified, a Seller may accept a lower offer from a Pre-Approved Buyer. (Especially those who have already had a sale fail because they accepted an offer from a Buyer that was not Pre-Approved.)

If you are the Buyer that is Pre-Approved, you just may beat out the other Buyer in the same scenario. A Pre-Approval makes your offer much stronger and more attractive to Sellers and their agents.

It also gives you, as a Buyer, peace of mind that you will be able to purchase the home you have made an offer on.

Remember: Pre-Approved, not Pre-Qualified.

Homebuyer Representation, Inc. is a Real Estate Brokerage that services Salt Lake City, Utah and surrounding areas. Agents are Exclusive Buyer Agents (EBAs) and represent BUYERS ONLY. For Free Reports or a Free Consultation, contact Homebuyer Representation at (801) 969-8989 or click the highlighted links in this paragraph.

©2007 Homebuyer Representation, Inc.