If you’re spending time with prospective homebuyers who can’t actually qualify for a home mortgage, you’ve wasted your time and lost out on potential income. Wouldn’t it make more sense to concentrate your efforts on helping qualified clients that are serious about making a home purchase? A preapproval can help ensure you’re doing just that.
Prequalification vs. Preapproval
These terms are often used interchangeably — but there are big differences between the two. With a prequalification, the lender is performing a few checks on the prospective borrower’s finances to determine the home loan amount they may qualify for. A prequalification letter tells you how much the client will probably be able to borrow from the lender, if further examination supports the preliminary findings.
For a preapproval, however, the mortgage lender examines and verifies the client’s debt, income, savings, assets and credit report. The information must satisfy the lender’s underwriters that this client is a low risk and a good prospect for repaying the loan. Preapproval is more vigorous vetting and a lengthier process than prequalification; buyers who submit to the process and are approved are serious buyers who are worth your time and energy.
Putting Your Clients in the Lead
Clients who can show a preapproval letter to a seller are more likely to be seen as serious, potential buyers who can qualify for the loan and follow through on their bid. In a competitive market, the preapproval letter can give your client the edge to help you close more quickly and easily. I am happy to process your homebuyers and provide them with a letter certifying that they are pre-approved for a home loan, which you can provide as part of the offer.
Plus, you’ll use the dollar amount noted in the letter to steer your buyers to homes that fall within their budget so you are both spending your house-hunting time wisely.
Getting Your Clients Preapproved
Preapproval is a service I offer to any prospective homebuyer who is serious about buying a new home. I am happy to work with your clients as their mortgage lender to review their finances, explain their options and help them determine the price range that matches their financial profile. I can help you determine which leads are serious potential buyers so you can focus your attention on them, and provide those prospects with information to help them make an informed decision about their new home purchase.
As an independent businessperson, your time is your money. Call me today to discuss how I can help you maximize your profits and grow your business by ensuring you are dealing with preapproved, serious buyers.