A common misunderstanding among many clients is that a pre-approval by a lender gives them the ok to start house-shopping, and guarantees that they can purchase a new home.
Oftentimes, this is NOT the case.
Most lenders will base pre-approvals ONLY on salary – not considering true stated income, credit history, or down payment verification. This gives a FALSE ASSURANCE that misleads many homebuyers, consequently wasting your time in the process. The true value of a pre-approval is in who did it, and if it was done properly.
THINGS TO KNOW: A pre-approval only guarantees the current mortgage rate for 120 days • ensure you always add a mortgage contingency to your real estate offer.
MY BEST ADVICE? Ask your clients if they have done a proper pre-approval with a mortgage broker. If not, have your clients contact me to get them rolling on the home-buying bandwagon. Your time is valuable, and I can give them the confidence they need to make efficient decisions when buying their home.
Helping you make sense of it all,
James C. Tworek
Partner, Director of Corporate Development
Trimor Home Finance
403.850.8050
james @ trimormoney . com
Self-Employed Professional in Personal Finance, Sales and Marketing with 11 years' experience. Partner, currently working as the Director of Corporate Development for Trimor Home Finance.
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