Not All Buyers Are Able To Buy

Dated: 12/16/2013

Views: 1107

To prove their worthiness, sometimes prospective buyers will show a prequalification letter, Wiren says. "And that means nothing."That's because in a prequalification, lenders usually don't verify buyers' information. A preapproval, on the other hand, involves third-party verification."'Prequalified,' that means they've talked with a lender and said, 'I have good credit and I make X number of dollars a year,'" Wiren says. Based on that, the lender responds that the buyer can reasonably expect to borrow a certain amount -- if those self-supplied facts are accurate and there aren't any negatives, he says. Most lenders don't research those details until the buyer applies for a loan, he adds.What the agent wishes you knew: Serious (and smart) buyers are "preapproved." That means they've already applied for the loan, the bank has verified their financial information and (if the numbers remain the same until closing) it promises to loan a specific amount at a specific interest rate.Still, after an offer, smart agents will call the lender and verify that the prospective buyer is preapproved for the necessary amount, Wiren says. At the same time, that agent will verify that the lender would have no problem closing in the expected time period -- usually 30 to 45 days.

Want to Advertise on this Site?

Latest Blog Posts

What Is The Deal With Home Warranties

About a week ago, I walked into the house after a lonnnng day of showing property and negotiating inspections and what do I see glaring across the room laying ever so "out in the open" on the

Read More

Are You A Real Estate Do It Yourselfer

If you're anything like me (who am I kidding you guys are so much cooler) you're not afraid of a little "Do-it- Yourself" sweat equity.  Last year alone I learned how to change the breaks in my

Read More

HIGHER INCOME LIMITS FOR USDA LOAN

NEW INCOME LIMITSRural Development has announced as of today, 7/22/19, income limits for the Single Family Housing Guaranteed Loan Program have been updated.‍You can now make up to $114,650 in

Read More

5 Ways To Make Your AC Dollars Go Further

The aqua jeweled waters of the Caribbean pared with lush, jungle-like vegetation that seems to stretch along the beach forever greet you every single summer. It’s amazing, really, and you hope

Read More