Thursday, February 15, 2007

Worthless Pre-Approval Letters!

I can't tell you how many times I receive worthless mortgage pre-approval letters with offers on my listings. They say "congratulations, you are pre-approved for a home loan", then it goes on to say that this pre-approval is based on verbal information given to the lender or some sort of inadequate information disclaimer. The letter is not based on a review of a complete loan application, credit review or anything like that!!! It's a letter that's not worth the paper it's printed on. I see this happen all the time. Do these buyers and their agents think this is acceptable? It's not professional to say the least, and they lose some credibility in the offer. If buyers want their offers seriously considered, they should use a reputable lender and be pre-approved based on a complete review of a credit application, verifications of income, job and bank accounts and have a letter that states all this has been verified. With a valid pre-approval letter in-hand, the buyers offer will have more power.

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