Pre approval letter before you make an offer on a house.
What a waste of trees (in my mind)
How long does it take to get a pre approval letter?
10 – 20 minutes on the phone?
Giving the “right answers” to a few questions without any verification other than credit score.
Ok. It is a start, but does it really mean anything?
I think it can be very misleading for buyers and sellers.
I do not know how many times it has happen, but the sellers are always thrilled to see a per approval letter with the offer.
Buyers feel like once they have a pre approval letter it won’t be a problem to get the loan.
Well, all you buyers and sellers out there, a pre approval letter from the bank, lender, mortgage broker in most, if not all cases is just a piece of paper.
The lender does in no way, shape or form commit to anything or promises anything or for this matter can be held responsible for anything.
So, please do not fall into this “trap”.
Talk to your Realtor, understand the process of buying and selling and get all the information about financing. Ask questions, educate yourself.
I wrote this post about 10 month ago and now it is even more important than back than. like I said before, I personally do not like to count on pre approval letters but times have changed a lot and nowadays, as a buyer, do yourself a favor and get one before you try to make an offer.