What this letter says about you
In a seller’s market, your pre-approval letter is one of the most important documents that you can supply to the seller with your offer.
Why?
Because this provides the seller a glimpse of your financial strength and the effort taken by your lender to verify it.
We know that you are a great candidate for a home and have excellent credit, but that’s what every buyer’s agent says about their client. With loan denial rates between 10 - 20% on average, we know that cannot be true for everyone.
So, sellers and listing agents are giving the approval letter more scrutiny than ever before because they desperately want to avoid having to put the home back on the market.
In this market, it’s not only important to have a pre-approval letter, but it’s just as important that it paints a true picture of your verified financial strength.
Even if you have the best offer, the seller may decide to accept another offer because they feel the other buyer is more likely to make it to the closing table.
One problem: Some of the best lenders, have poorly written pre-approval letters that cannot be changed due to company policy.
In this case, I recommend that you find a way for the lender to communicate the strength of your client to the listing agent.
Here’s two excerpts of letters that I have received lately.
“Please note that this Pre-qualification Notification is based on non-verified information and does not constitute an official commitment on behalf of [the mortgage company].”
“A recent credit report has been pulled and reviewed by [Mortgage Company] and submitted and approved by Fannie Mae Desktop Underwriting. Upon review of your credit history, employment verification, assets and debts, we are pleased to advise you that you have been “Pre-Approved” of a mortgage loan in the amount stated.”
Can you see why the seller would feel more comfortable with the second letter?
This is why we only recommend lenders that have a track record of success and want to show you in the best light possible.
If you need a referral to one of the best in Nashville, then hit reply and I’ll send you a list of several great loan officers.
The Daily Deal in Nashville is a turn of the century historic home in Cleveland Park [East Nashville] in need of renovation and currently listed for less than $280,000.
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