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There are a few different types of prequalifications, and we’re going to be talking about the differences today. You may want to know this as a seller in the East Bay real estate market.
So, what are the different types of qualifications?
- A prequalification letter can be obtained by talking to someone over the phone. It doesn’t hold much value because the qualification is based on what you had said. Nothing is checked by the lender, so it doesn’t hold much merit.
- A pre-approval is when a lender looks at your bank statement, pay stubs, tax returns, etc. This is your typical approval, and listing agents typically require this of buyers.
- A fully underwritten pre-approval holds the most merit out of the three. This process can take 3-5 days, but this kind of approval makes you almost as good as a cash buyer.
If you’re selling in the East Bay, you need to be looking for buyers who have been pre-approved or have been underwritten with an approval. Watch out for buyers who only have a letter of prequalification. In a multiple offer situation, this is going to be good to know.
If you have any further questions, please don’t hesitate to contact me!
