Get pre-approved, not "pre-qualified"


Online mortgage loan pre-approval letter

What is the difference between pre-qualifying and pre-approval?
Choice Finance® will not issue a "pre-qualification" letter. Too many mortgage companies and their Loan Officers are willing to issue this type of letter after a brief phone interview with the borrower. These companies are eager to make sure they get your business, so they are very hesitant to make you, the borrower, fill out a complete application, pull 3 credit scores, and receive in-hand the borrower's necessary income and asset documentation.

This is a huge dis-service to the client, to the Realtors® involved, and to the seller. This is where many Loan Officers are negligent. Two major things happen frequently when this approach is taken.

The borrower is promised a rate and program that they don't qualify for. The borrower then doesn't find out they will get a higher rate, with higher fees until it's too late. By "too late" means this mortgage company knows you aren't going with anyone else at this point... they know you are legally obligated by your sales contract to purchase the property AND it's too late to go with another mortgage company.

2) The borrower ends up not qualifying for the home at all. The borrower had to wait 15-30+ days to find out they do not qualify. The seller is now in a huge bind. They in turn may sue you the buyer/borrower, your Realtor® , and your Loan Officer and company.

Be very wary of any mortgage company who does not do their due diligence up front and make sure they have a loan in hand!  Choice Finance® has seen too many clients who thought they were getting a better deal somewhere else, only to have it fall through because of the other company's lack of diligence and hard work upfront to make sure they could deliver what was promised.

A Pre-Approval Letter is a step above pre-qualification. Pre-approval involves verifying your credit, down payment, employment history, etc. Your loan application is submitted to an underwriter and a decision is made regarding your loan application. If your loan is pre-approved, you are then issued a pre-approval certificate. Getting your loan pre-approved allows you to close very quickly when you do find a house. A pre-approval can help you negotiate a better price with the seller, since being pre-approved is very close to having cash in the bank to pay for the house!

Choice Finance® is a lender.  Choice Finance® has Underwriters who are staffed in our corporate location. Once we have all necessary documentation from you, we will be able to have an Underwriter issue you a full loan approval, known as a Commitment Letter. This letter will put you ahead of the pack when it comes time for the Seller to review contracts. Let's say they have 10 contracts... it's almost a given that yours will be the only full commitment to lend, while the others are Pre Qualification Letters (NO WAY!) and Pre Approval Letters (adequate).

Make your Realtor®, seller, and seller's Realtor® happy!   Why take a chance when you have a Choice (Finance)?!

          Kathi Kershaw     Chuck Kershaw
"Have Brent Mendelson write you a Pre Approval letter today"