Realtor Dilemma: Mortgage Broker Pre-Qualification vs. Lender Pre-Approval

When given the choice between a Mortgage Broker Pre-Qualification and a Lender Pre-Approval, realtors should avoid the lender’s loan officer simply because more often than not these types of loan officers do a verbal application, pull the credit, and write a pre-approval letter based on information discussed in a conversation.  They usually do not collect the required documents for an approval and often are not authorized to use the appropriate underwriting engines. They do not have lending or underwriting authority to approve loans, but are giving out a document that has the word approval on it. Due to this, most pre-approval letters from lenders should only be called an opinion letter. Continue reading →