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Answers (2)
- Call The Sisters, "Call The Sisters"
- Contributions:372
There is a difference between a pre-qualification and a commitment.
A pre-qualification is based on a cursory view of the borrowers financial data. The commitment comes only after appraisal, verification of buyers income and debt and a screening by underwriting. A commitment can have contingencies which have to be removed prior to final loan approval.
The commitment can take 20-30 days to get from the bank once the contract is signed.
It is usually pretty standard in the industry that an offer to purchase is accompanied by a pre-qualification from a lender.
A pre-qualification is based on a cursory view of the borrowers financial data. The commitment comes only after appraisal, verification of buyers income and debt and a screening by underwriting. A commitment can have contingencies which have to be removed prior to final loan approval.
The commitment can take 20-30 days to get from the bank once the contract is signed.
It is usually pretty standard in the industry that an offer to purchase is accompanied by a pre-qualification from a lender.
- Jim Basquette CRS, CNE, "Jim Basquette"
- Contributions:1231
When representing sellers, I always consider an offer with a pre-approval letter (with a $ amount above the list price) a sign of a good qualified strong buyer. If we receive an offer without the letter, without a $ amount or below the $ amount the seller would counter offer at (if there would be a counter offer), Depending on the circumstances, I recommend they not accept the offer until we get one. An expection is that we accept the offer with a contingency that they provide one within 3 days. I our MLS, we have 3 days to take the home off the market once an offer is accepted. If no letter in 3 days, no acceptance and the home never goes off the market.
When representing buyers, I alway require they get a pre-approval letter with a $ amount at their max price of a home they would consider. Again this is a sign of a strong buyer. Strong buyers have a better chance of getting their offer accepted and at a better price.
When representing buyers, I alway require they get a pre-approval letter with a $ amount at their max price of a home they would consider. Again this is a sign of a strong buyer. Strong buyers have a better chance of getting their offer accepted and at a better price.
Qualified buyers, Commitment Letter from lender, a good idea?
In selling a home should the seller require a Commitment Letter from Lender. The obvious downside home could be off the market for weeks. I don't understand why anyone would not require a Commitment Letter.
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