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In North Carolina, is "pre-qualified" the same as "pre-approved"? We were expecting to see a letter of pre-approval for the person who made an offer on our house, and we were disappointed to see only a "pre-qualification." Our realtor says they are the same. I know elsewhere that is not true, but here? Is that the best we can get, short of a cash buyer?
VA Loan: The "buyer" just sold his house a few months ago, and I'm pretty sure it was a short sale. Is this going to prevent him from getting his VA loan? (Or from getting the actual loan?)
And another question: The man who made an offer is married but wants to buy our house in his name only. His previous home and loan were in both names. Should we be concerned?
Pre-Qualified means the bank is pretty confident the person will be approved but they have not applied. Pre-approved means they are ready to go with the banks money in hand. I would not let pre-qualified scare you away, but pre-approved would mean quicker closing.
As far as the second question, the wife might have bad credit at this point or possibly unemployed. The bank would take that into consideration when pre-qualifying them. Wouldn't hurt to ask though.
To me, Pre-qual means a phone call was made and Pre-Approved means the buyer's credit was pulled and he turned in bank statements, W2s, and other needed documentation. It also means the scenario was run through the desktop automated underwriting system.
Some lenders use one term and not the other because of their own policies. Don't fret about the words on the screen. Call the loan officer and see what the situation is as that will tell the story. If he did a short sale less than 2 years ago, fat chance he's getting a new loan today!
Call the loan officer and see what the situation is as that will tell the story. If he did a short sale less than 2 years ago, fat chance he's getting a new loan today!
We decided not to accept or counter until we've seen an actual letter of pre-approval, and "buyer" has agreed to start that process. If he does come up with one, should we be suspicious? Is a short sale or a wife's bad credit something that could missed in the pre-approval but found later? Or is it safe to assume that once he gets pre-approved, all that is taken care of?
We haven't been told there was a short sale, but after a little internet sleuthing, it's pretty suspicious. (I know what his mortgage was, and it was considerably more than his house sold for.)
Can I call his loan officer if I have doubts?
We're still showing the house and hoping for a better offer. In fact, while I was typing this post, someone drove down our driveway for a little snooping.
You can certainly call the loan officer, but by law, there's not much s/he can share. This is true even after obtaining the buyer's request to release information. (Permission does not override privacy laws). Now if the buyer wants to share directly with you, that's their option. When I have had well qualified and high credit scoring buyers, I've had agents get the score disclosure from the buyers and attach it to the contract. In a pi**ing match, it works. But sharing derogatory information is a lawsuit begging to happen, not to mention loss of a loan officer's job and possible prosecution.
As for the calls from agents and sellers, most loan officers can field these calls with eyes closed and not really say a thing. I seriously doubt you will get anywhere. I just recommend you make sure you have the right person in your research. Your agent can ask their agent any question you request. What about flat out asking them?
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