Pre-Approved Buyers

Sometimes similar-sounding terms can have vastly different meanings. Whether a buyer is pre-approved or is merely pre-qualified, for example, can make a huge difference in the length of time it may take your home sale to close.

Buyers who are “pre-qualified” are those whose lenders have determined how much they can borrow based only on information the buyer has provided to the lender. Nothing has been verified to determine the buyer's true creditworthiness. The buyer still must fill out a loan application and go through the lender's approval process.

For buyers who have been “pre-approved,” the lender has already done a credit check along with verification of employment and deposit. The lender's pre-approval is a commitment to loan the buyer up to a certain predetermined amount. The only piece missing is the lender’s appraisal of the home to confirm its value.

An offer from a pre-approved buyer can trim days or even weeks off the closing process. When I assist sellers, I make sure I am dealing with offers from pre-approved buyers. This maintains the sellers best interest, and makes the process of selling go much more smoothly.