This video is about the number one mistake buyers make when trying to buy a home. There’s nothing more disappointing than finding a home you love, getting it under contract, anticipating your move-in, and then losing it all because of this mistake.
I’ve seen this happen so many times over my 19 years in the business that I’ve determined to never let on of my buyers make this mistake.
What’s the mistake? Not being 100% confident that you can obtain a mortgage. But, “We are pre-qualified!”. What went wrong.
Did you know that not all Loan Pre-qualifications were the same. In fact, many of them aren’t worth the paper they are written on. I don’t blame the buyer because it can be confusing.
You hear of terms like Pre-qualified and Pre-Approved and easily confuse the reality. Lenders often cause the confusion by using these terms interchangeably.
Here’s an example:
In reality, both of these descriptions are about being “Pre-Qualified”. Pre-Approvale requires full underwriting by the lender and can take 2-3 weeks.
There are two types of Pre-Qualifications:
- You verbally or by using a web form submit data to the lender: Income, debts, fico score, employment info. The key here is the data is not verified in writing. Oh, you’ll get a Pre-Qual letter. But in reality it’s worthless.
- You submit a signed application; Lender pulls a mortgage credit report; you submit employment verification. All of this is done IN WRITING. The result is a viable Pre-Qual letter that indicates you’ll get your loan unless something unforeseen happens.
Please watch the video for more and feel welcome to call with any questions. 512-516-4666 – Dan Forbes, Broker, Forbes Realty
