Chances are good your buyers are not approved at all…they’ve only been pre-qualified
Shocking headline, isn’t it? Hard to hear the truth sometimes, but I am going to tell you that in my experience, the bulk of Pre-Approval letters being given to Real Estate agents by Loan Originators are just plain worthless. They are being written to get the buyers a house, but the protection/reassurance the seller is looking for that tells them the buyers really are qualified does not exist. Welcome to Fantasy Island.
My intention in writing this is two-fold: first, to let you know about this situation, and second, to give you some suggestions for getting a comfort letter that is worth the paper it is printed on.
Frequently a Realtor will refer me one of…