I have a Cabot home buyer that has been under contract for the past three weeks. She came to me and said that she was already pre-approved for a loan. It was a lender that I was unfamiliar with, so I asked for his number. I called the lender and he said that the loan will go through and everything is fine.
That was three weeks ago, today we found out that she would not be able to get the loan. The lender just found that out today. So now we are trying to scramble to get her a loan so she can buy this home for sale in Cabot.
Lesson to be learned:
When beginning the home buying process be sure to get a pre-qualification letter, not a pre-approval letter. What is the difference?
Pre-approval
This is based on information that you have given the lender verbally. It is subject to change based on other conditions. Most of the conditions have to do with the paper work and forms they have to do.
Pre-qualification
This letter states that you have the loan. The paper work is done and the bank and you know that you are locked in for the loan. A pre-qualification letter is only good for a specific time period, be sure to ask your lender how long it is good for.
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Good Day
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