But how does the lender really know if this borrower qualifies for that loan? The lender has not reviewed bank statements, looked at pay stubs, or pulled the borrower’s credit. For all the lender knows, the borrower in front of her could be telling a tall tale and be broke, unemployed, and freshly bankrupt. Even if the borrower isn’t blatantly lying to the lender, many nuances of the borrower’s financial situation may affect their qualification for a loan — nuances the borrower may not understand or know to report. Bottom line — a pre-qualification letter is very unreliable as a predictor of the borrower’s eligibility for a mortgage. Listing agents and home sellers tend to take them with a grain of salt. A buyer with a pre- qualification letter might just as well be coming asking for a favor, with no qualifications to buy whatsoever. Does Pre-Qualification Affect My Credit Score? Pre-qualification usually does not entail a “hard pull” on the borrower’s credit (more on this later). That means that the credit score remains unchanged after pre- qualification.
RITA REALTOR | BROKERAGE 904-555-5555 | Rita@realtor.com | www.Authorify.com
LARRY LOAN OFFICER | OFFICE 904-555-1010 | Larry@loans.com | www.Authorify.com
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