Here’s everything you need to know about pre-approval in today’s market.
Today I’m speaking with Heather Jacobs about all things pre-approval. Heather is one of my favorite local lenders, and I’m super excited to discuss pre-approval with her today:
Why is pre-approval so important for buyers?
A pre-approval is essential in a seller’s market like ours. Sellers won’t even consider your offer if you aren’t pre-approved.
What’s the difference between a pre-approval and a pre-qualification?
Pre-qualification is just a visual assessment. We might pull your credit report and check your finances, but it is not a full review. A pre-approval looks at tax returns and your unique situation. It’s a much more solid mark of confidence. Once you give us all the necessary documents, it only takes two or three days for you to become pre-approved.
Once a buyer is pre-approved, how long does it last?
It lasts 90 days, which is the same length as a credit report. It can also be extended with the renewal of your report.
“Pre-approval is essential in a seller’s market like ours. ”
How do you determine what someone can be pre-approved for?
We take 45% of your household income before tax, and we make your taxes, your insurance, and any debts fit within that 45%. We take other factors into account, but it’s usually a set and dry formula.
How do you help buyers get their offers accepted?
The main thing we do is vouch for our buyers by calling the seller’s agent and informing them about our buyer’s pre-approval and good financial standing. Sellers want to know their buyers can follow through, and we assure them that our buyers can.
Hopefully, this cleared up any confusion you had around pre-approvals. If you have any questions, please call or email me. I am always willing to help.
