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Rainmaker
864,658
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

In this seller's market, I strongly recommend not only pre approval but conditional pre approval letter. I am not one to like to waste valuable time, so to prevent it from happening to my sellers or prospective buyers, conditional approval letter is the way to go.

Dec 05, 2014 04:20 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

A pre-approval carries considerably more weight than a pre-qualification so it would be preferable.

Dec 05, 2014 01:05 AM
Rainmaker
2,486,205
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

I would prefer a pre approval.

Dec 07, 2014 10:10 AM
Rainer
136,193
Richard Woodward NMLS#217454
Nexa Mortgage, NMLS #1660690 - Plano, TX
Service Beyond Expectations! Your Texas Lender

In Dallas Texas where I originate mortgages, Realtors often times will not even reply to offer without a pre-approval letter Bill Dandridge .  We are in a seller market as well Sarah & Les Oswald .  I have reviewed the "pre-approval" letters from Chase, Bank of America, and Wells Fargo and they do not conform to the definition of a pre-approval letter as defined by the State of Texas.  A true pre-approval letter is one that confirms in writing that the loan officer has reviewed the income, assets, and credit of the borrower.  Even that relies heavily on the expertise of the loan officers.  A loan commitment ensures that the borrow is approved.

 

 

 

Dec 06, 2014 11:16 PM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I sent them to the lender if it is not recent... One case the borrower forgot to factor in his child support which put him in a lower borrowing limit.

Dec 06, 2014 11:04 AM
Rainer
80,193
RVA HomePRO Michael Hottman
RVA HomePRO Realtor with Keller Williams serving Hanover, Henrico, Chesterfiled and Richmond, Virginia - Glen Allen, VA
Helping you achieve goals in life & real estate

Pre-qualified hardly exists in my area - and many "Pre-Approvals" are in the same boat as old pre-quals since they usually only have a basic credit report, may or may not have assests verified, and no underwriter has looked at the documentation. Until someone actually takes their first trip through underwriting is a Pre-Approval really have much weight.

Dec 06, 2014 10:21 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I always recommend that buyers sit down with a lender and start the pre approval process as soon as possible.

Dec 05, 2014 11:19 PM
Rainmaker
474,492
Bill Dandridge
MKB, Realtors - Roanoke, VA
GREEN, ABR, GRI, EcoBroker

I think that they are both steps in the right direction in proving to the seller that your client plans on moving forward. I know that lenders say that the pre-approval sends a stronger signal, but I think that the pre qual letter is sufficient enough.

Dec 05, 2014 01:25 AM
Rainmaker
630,251
Ajay Pandya
e-Merge Real Estate Unlimited - Columbus, OH
Realtor Ajay Pandya

Of course pre-approval is the way to go.

Sep 29, 2017 09:29 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Definitely - in this fast paced market.

Jul 17, 2017 11:08 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Preapproval is always better than prequalified in my book.

Jan 04, 2017 07:59 PM
Ambassador
3,727,873
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Getting pre qualified isn't that useful.  At this stage, none of the information is really verified, which is it needs to be at the pre-approval point.  

Dec 16, 2015 10:12 AM
Rainer
438,218
Doyle Davison
Hawaiian Beaches Hawaii - 714-968-6767 - Huntington Beach, CA
30 years as your Concierge services listing broker

I'll show a home before pre-approved, but I will not put in an offer until I know we can close it...

Dec 10, 2014 01:54 AM
Rainmaker
1,141,082
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

Absolutely...

Dec 10, 2014 12:05 AM
Rainmaker
1,153,794
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Sorry Richard, a pre-qualifying letter won't even get you through the front door with most of my Sellers.

Dec 09, 2014 11:40 PM
Rainer
6,104
william browne
Coldwell Banker Residential Brokerage - El Cajon, CA

Good question! Sometimes the listing agent will go with a pre-qualification which is based on unverified information. Most good listing agents will want a pre-approval and often times if they have been misled by lenders, thay will want their own trusted loan officer to cross qualify the buyer. The cross qual can be handled between the buyers lender and the sellers trusted loan officer. No need for the buyer to actually have communication with seller lender.

Dec 09, 2014 04:32 AM
Rainmaker
90,543
Debra Peters
Referral Realty - Manorville, NY
NY Real Estate Salesperson

I recently attended a class that was hosted by Wells Fargo and absolutely pre-approved not pre-qualified.  So many things can change from the time the buyers have a pre-qual letter as opposed to an approval. In addition, the approval shows they are ready, willing and able buyers which is what the homeowner needs.

Dec 08, 2014 09:31 PM
Rainmaker
2,224,473
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

There is a difference. I would prefer my buyers are pre approved. I will call their lender if it's just a pre qual and we will have a discussion. One time, there was only one form the buyer needed to complete before they were fully pre approved. It was that easy. 

Dec 07, 2014 10:49 AM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Yes they should

Aug 10, 2019 11:48 PM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Dipti nailed this one!

Jun 11, 2018 04:50 AM
Rainer
279,878
Dipti Thakkar
LAER Realty Partners - Andover, MA
On a team with Praful Thakkar

Pre-approved.

May 02, 2018 09:12 PM