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Old Yesterday, 09:12 AM
 
11,409 posts, read 8,122,653 times
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Why would a RE agent show you houses if you are not preapproved?
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Old Yesterday, 09:49 AM
 
Location: Rochester, WA
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My two cents… Don’t get too hung up on the difference between the words prequalification and Preapproval. I think their usage and meaning probably differs by region, and even by lender. I have seen them used interchangeably.

If you want to make a real distinction between simple preliminary and more complete approvals, people have letters that specify they have underwriting approval in the letter.

But the bottom line is yes absolutely you should be preapproved now and as soon as possible and contact kept with that lender periodically and on each place that you are considering. It’s a relationship not a one time thing. We submit offers with preapproval letters written on the offer date for the offer amount. The lender does ideally need to be somebody you can reach at anytime you wanna make an offer... Even evenings and weekends. Ask your agent for recommendations for lenders they know they can work with and trust to get the job done.
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Old Yesterday, 09:59 AM
 
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Thanks Diana.

I've read previous posts of yours where you say how important it is to be able to work well with the lender, and be able to reach them, etc.

For comparison purposes, would you say that it would still be a good idea to apply to a couple of lenders on our own, and then asking my realtor for some recommendations too.

I know some people recommend getting approved by only 1 lender, and some say, to get preapproved by more than 1. Is it a good idea to get preapproved by more than 1, or does it not make a difference in the end.

Diana, would you mind if I send you a private message I have a specific question I'd love your take on.
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Old Yesterday, 10:14 AM
 
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"Pre-Approval" and "Pre-Qualification" are nearly identical and both require a credit pull.

The credit file will have a shelf life of 90 days.

So you'd have two months to shop, with the actual knowledge that you can buy, and with the actual information about your credit. So you can work to repair any misreporting items, as well as surgically pay down specific accounts so as to increase your score for optimal terms.

Your score is not going to move significantly with another mortgage pull in 90 days.
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Old Yesterday, 10:24 AM
 
Location: Rochester, WA
6,382 posts, read 3,566,206 times
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Quote:
Originally Posted by ginan View Post
Thanks Diana.

I've read previous posts of yours where you say how important it is to be able to work well with the lender, and be able to reach them, etc.

For comparison purposes, would you say that it would still be a good idea to apply to a couple of lenders on our own, and then asking my realtor for some recommendations too.

I know some people recommend getting approved by only 1 lender, and some say, to get preapproved by more than 1. Is it a good idea to get preapproved by more than 1, or does it not make a difference in the end.

Diana, would you mind if I send you a private message I have a specific question I'd love your take on.
I would have preliminary conversations with a couple if you wish, interview the personality and see how well you work with them. Ask about rates and fees and how they work.

I would not drag out the relationship more than a few conversations or get preapprovals from more than one lender if the relationship is working.

Certainly you can send me a private note. :-)
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Old Yesterday, 11:04 AM
 
118 posts, read 58,350 times
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Quote:
Originally Posted by Diana Holbrook View Post
I would have preliminary conversations with a couple if you wish, interview the personality and see how well you work with them. Ask about rates and fees and how they work.

I would not drag out the relationship more than a few conversations or get preapprovals from more than one lender if the relationship is working.

Certainly you can send me a private note. :-)
I meant more like conventional lenders on our own, like banks, credit unions, etc. - on our own.

I'll send you a note - thank you Diana.
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Old Yesterday, 11:05 AM
 
118 posts, read 58,350 times
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Quote:
Originally Posted by Pfhtex View Post
"Pre-Approval" and "Pre-Qualification" are nearly identical and both require a credit pull.

The credit file will have a shelf life of 90 days.

So you'd have two months to shop, with the actual knowledge that you can buy, and with the actual information about your credit. So you can work to repair any misreporting items, as well as surgically pay down specific accounts so as to increase your score for optimal terms.

Your score is not going to move significantly with another mortgage pull in 90 days.
Thank you Phtex.

This helps me put it a little more in perspective.
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Old Yesterday, 12:21 PM
 
Location: Denver CO
21,657 posts, read 12,289,566 times
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Quote:
Originally Posted by Pfhtex View Post
"Pre-Approval" and "Pre-Qualification" are nearly identical and both require a credit pull.

The credit file will have a shelf life of 90 days.

So you'd have two months to shop, with the actual knowledge that you can buy, and with the actual information about your credit. So you can work to repair any misreporting items, as well as surgically pay down specific accounts so as to increase your score for optimal terms.

Your score is not going to move significantly with another mortgage pull in 90 days.
I know this is your business, but this is not the way I've heard the terms used.

This explanation is consistent with the usage I'm familiar with - that pre-qualification is based strictly on what a potential buyer tells a lender, and pre-approval is the one that requires a credit pull.

https://www.investopedia.com/article...d-approved.asp
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Old Yesterday, 12:46 PM
 
Location: Rochester, WA
6,382 posts, read 3,566,206 times
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The terms are used interchangeably here.

The strength and weight of the approval is usually in the letter, if you read it. It will say exactly what has been verified, and what has not, yet.
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Old Yesterday, 01:05 PM
 
Location: Raleigh NC
10,106 posts, read 7,576,478 times
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pre-qualify - based on statements made by the consumer, and could be a credit pull.

pre-approval - credit pull and some verification of income and assets.

If you are a wage-earner (not S/E and not commission-based) AND have no other debts AND have a 20% downpayment hanging out in a liquid account THEN pre-qualify may be good enough IN A NORMAL MARKET.

In hot markets, every one else has gotten a preapproval and so you look less committed to the entire process.
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