Pre-qualification is basically a statement by a lender that the buyer appears to be qualified to purchase your property.
Pre-qualifications do not incorporate a full review of credit, full verification of employment and down payment.
This is a half measure in many instances and a smart, savvy listing agent will want to see a stronger evidence that the buyer is qualified.
Pre-approval is an actual
statement by the lender that they
verified their income, their assets, their
credit, and their employment.
As a seller and as an agent, we will ask the buyer to forward us the actual pre-approval document from the bank that’s doing the loan.
That way you can be certain that the buyer has actually gone through the
underwriting process and is
definitely qualified based
on the information at
hand.
The pre-approval process is a very important step that you as a seller need to make sure it’s authentic and reliable.
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