Don't confuse pre-approval with pre-qualification
Pre-Qualification
This is a loan company's first look at a buyer's ability to purchase a home. It is simply a calculation based on what the buyer currently owes each month divided by their income followed by a determination of what they can afford for housing each month. This is not the same as pre-approval and does not guarantee that a loan will be granted. Many purchase deals have fallen through because a pre-qualified buyer's loan application was denied. That means starting the home selling process all over again.
Pre-Approval
Pre-Approval means the buyer has gone through a formal "pre-qualifying" process and a loan application has been formally accepted by a lender for financing.
Unconditional pre-approval means your buyer has met the lender's criteria and has been approved for a loan up to a specified amount. Having an unconditional approval is as good as shopping for a home with your check in hand.
FutureNet offers a FREE Pre-Approval program for all potential buyers. Ask all potential buyers for a "Pre-Approved" letter from their lender or mortgage broker. If they don't have one, request that they complete the process before you begin to negotiate the sale with them.
Pre-Approval is FREE and carries no obligation for buyers. Simply refer them to the Pre-Approval application on the FutureNet Mortgage Web site.
Learn how to use your home's equity to improve your home and increase your sale price.
If you're selling your home, are you looking for a new home? Learn more about financing your next purchase.
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