Pre-dead, pre-pregnant, or pre-approved?

3 things you may not know about me:

I'm pre-pregnant, pre-dead, and a pre-billionaire. Now I don't have an English degree (oh, wait a second, yes I do), but the prefix "pre" means "before." And that's just what a pre-approval is. A "before approval." Well, congratulations, you're in good company--all those folks who have yet to be approved to purchase a home.

At best, a pre-approval is the opinion of a super good loan guy that you'll be able to get that mortgage loan. At worst, it's the opinion of a really lousy loan guy.

Instead of singing "Ain't Got Nothing If You Ain't Got Love," Michael Bolton should have been screaming at the top of his lungs, "You Ain't Got Nothing If You Ain't Got Underwriter's Blessing."

Simply put, the solution is to get approved-for real. The word "approved" has been diluted over the years. Approval is like pregnancy. Either you are or you're not. There's no kind of, pretty much, or basically approved. A true approval can only be claimed once the decision maker has seen the file. And that decision maker is the underwriter. Until she has signed off on your income, assets, credit and a myriad other requirements, you got nothing.

Why don't all mortgage lenders and brokers offer real approvals before you finalize your purchase to make that offer on your dream home? Because, depending on the company, it's either difficult or just plain impossible. Loan brokers, in particular, who have no control over who underwrites your loan application, may not be able to do it. The actual lender often refuses to underwrite a loan without an accepted offer and appraisal. By then, it's too late to hear, "no." Large direct lenders often have policies to the same effect.

I helped pioneer the "underwriting first" concept many years ago. And with the lack of loan options available, Plan B just simply isn't there. So put the pre-approval ideal back on the shelf where it belongs and come get a real approval.