Steve Morgan…, Real Estate Pro in Bethany Beach, DE

How much confidence do you have in pre-approval you get with your offers?

Asked by Steve Morgan - (302) 541-5363, Bethany Beach, DE Fri Feb 25, 2011

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yeah, I think the pre-approvals with the letterhead are out the door now...

I think to submit an offer, you should the following (which i do with all my offers)

-Complete DU Findings
-Copy of Deposit Check
-Proof of Funds
-Underwriter Approval (if you have this)-If you do the only conditions should be purchase contract, prelim and appraisal..etc, all the income and assets, employment should all be signed off.

I think if you submit these, the offer should be much stronger and the buyer should have a better chance to get the offer though...

Web Reference:
1 vote Thank Flag Link Fri Feb 25, 2011
All great answers in this is my take.

A Pre-Qual = phone conversation, Pre Approval = pulled credit, review with eyes and hands paystubs, w-2, tax returns, loan application & ran through automated underwriting for approval. Loan Commitment in my eyes as a lender should be that all conditions are cleared. Once all conditions are clear and the underwriter provides that CTC (Clear To Close) one should be closer to settlmen and provide a loan commitment.

A true CTC are coming about 2-3 days before settlement. Of course all this means nothing if the buyer gets fired, laid off or leaves this world involunatary. Nothing is final until Settlment is over – itt's best you work with professional in this market with experience.

Thanks - have a great weekend!

Steve Morgan
Fairfax Mortgage Investments, Inc
1 vote Thank Flag Link Fri Feb 25, 2011
I have had deals denied after a pre-approval. But I will not reccomend for one of my sellers to counter to a buyer without one. All I believe in now is "clear to close". They need to change the name of the forms. Pre-approval should now be called "Maybe letters" and commitments should be called "Good Possibiltiy letter". Then if you (bank guy) don't do the loan after those two letters "Sorry about your luck letter".
1 vote Thank Flag Link Fri Feb 25, 2011
I have never had an offer to purchase fall apart after I saw a preappoval because of not being able to get a loan.
1 vote Thank Flag Link Fri Feb 25, 2011

Warm Regards,

Dustin & Mariya
0 votes Thank Flag Link Sun Dec 30, 2012
I have a few national banks I am aware of that I have to question ability to close

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Fri Feb 25, 2011
It depends on who writes the pre approval. Some companies do a much better job than others do. Some do a better job at due diligance for the approval while others pull a credit report and call it good.
0 votes Thank Flag Link Fri Feb 25, 2011
Steve, I have a fair amount of confidence in my mortgage professional... Fairfax Mortgage has an office in the Bennett Realty office in Bethany Beach at 34026 Coastal Highway.
0 votes Thank Flag Link Fri Feb 25, 2011
I have 0% confidence in them. They're not worth the paper on which they're printed in many cases--hence one of the reasons why I prefer to buy/sell with creative financing. Loan commitment letters don't mean much either--until after the deal closes.
0 votes Thank Flag Link Fri Feb 25, 2011
I have confidence in the pre-approval once the property closes. Until then, it's just another piece of paper that's needed to present an offer.
Web Reference:
0 votes Thank Flag Link Fri Feb 25, 2011
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