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Pre-Qualified, Pre-Approved or Loan Approved?
When selling a home, it’s important to understand the different types of loan approvals that you will come across.
Some buyers will present you with a pre-qualification letter from their lender which has not actually been verified with the necessary documents, while a pre-approval letter can only be obtained after verifying employment, income, creditworthiness and the person’s debt-to-income ratio.
The most solid loan approval type is when buyers have loan commitment or a to-be-determined loan, which means they have provided all necessary documents to the lender and the lender has processed these documents through their underwriting process.
The only thing better than a TBD letter is cash. But as with all things, there are risks even with cash deals so you should request proof of funds from the buyer or their agent to verify they have the ability to purchase the property.
It’s so important to make sure buyers are properly qualified, or else you could be putting yourself in a bad situation.
Call, text, or email us today so we can further help you successfully sell your home!