Nobody hates “mortgage-ese” more than us.
But today, we’re making an exception.
The real estate market is incredibly competitive right now. Homes are selling within days or even HOURS of being listed.
Sellers are getting multiple offers (they’ve got choices).
Buyers are putting in multiple offers (just in case).
But here’s the problem… potential buyers keep finding us after having their offers rejected. It’s not a pretty phone call.
The worst part? It can easily be avoided.
That is, if you’re willing to learn a little “geek-speak.”
Pre-Qualified vs. Pre-Approved
So what’s the reason borrowers are making offers on homes that aren’t being accepted?
They were pre-qualified. Not pre-approved.
Sounds almost the same. But it’s not.
Pre-Qualified (with limited geek speak)
Getting pre-qualified is nice if you’re just starting the process & trying to figure out whether or not you’re ready to buy a home.
You’ll have your credit evaluated. You’ll review your income & debt situation.
You wind up with a general recommendation that you should be able to borrow a certain amount assuming a certain down payment.
But that’s it.
A “Pre-Qual Letter” in real estate terms isn’t worth the paper it’s written on…especially if you’re putting in an offer on a home with competitive bids.
Pre-Approved (with limited geek speak)
At America’s Mortgage Resource, we use the term “pre-qualification” to describe an initial conversation with borrowers.
But as soon as you’re ready to go house shopping, we want to get you Pre-Approved.
Getting Pre-Approved involves:
- A formal loan application
- Obtaining credit approval for a specific program
- Obtaining underwriting approval on your income as well as determining your qualifying ratios
- Verifying your down payment funds
- Locking in a rate
When you get a “Pre-Approval Letter” from us, you are considered a serious buyer who is ready to act. Sellers give Pre-Approved offers the highest priority because they know your loan will go through.
Don’t Take Chances
If you’re even thinking about buying a house anytime soon, come see us to get Pre-Approved.
You never know when the perfect house may show up. Getting Pre-Approved is the best way to ensure you have the best chance of getting the house you really want.