or into the one you want but at exorbitant terms.
I don’t sell you a bill of goods that doesn’t exist. I’ll give you an honest assessment of your odds of getting approved for a loan. I’ll let you know if I think you can obtain a loan through my sources on desirable terms — and I’ll let you know if you can’t. If there’s anything shaky in what I see, I’ll let you know about it and say it loud and clear: “Hey, I think I can get the loan, but I’m not 100% sure.” That way you can make an honest and educated decision on whether or not to see a multitude of houses. After all, why tour a bunch of houses if you know you will not be able to afford any of those properties? This will save you time and give you the ability to prioritize your efforts on the clients who are financially sound enough to buy the houses they are seeking. The best way for me to tell you this information is through a pre-approval letter. Once again, when I say “pre-approval,” I don’t mean “pre-qualification.” Remember that there is a big difference between these two types of letters! A pre-qualification is simply checking your credit and asking a series of questions. You can answer those questions however you like, as a pre-qualification doesn’t involve verification of those answers. In other words, a pre-qualification is a glorified credit check, which tells you very little about your chances of getting the loan you want. A pre-approval letter is where the answers you gave to those pre- qualification questions actually get verified as being true or false. Income verification, down payment qualification, employment history, etc., are all investigated.
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