Not all preapprovals are the same – Pt 2

In my previous article, here, I discussed the 3 different types of preapprovals: Pre-Qualification, Preapproval, and Fully Underwritten Approval. They aren’t all the same!

Not only are they not all the same, there are some very specific things that are included on pre-approval letters that make realtors think, “Wow. This is a strong pre-approval!” Here are some of them:

Loan Type

There’s FHA Loans, Conventional Loans, Jumbo Loans, VA Loans, IHDA Loans and many others. Just ask! Did you know that the different type of loan you are securing could impact your offer? Let’s talk about it.

Related: To Lock or Not to Lock: The Eternal Question

Down Payment

You don’t always need to put 20% down when you buy a house. There are many other options, but this amount goes on the letter. To strengthen your offer, let’s talk about increasing your down payment.

Purchase Price

Are you planning to have your initial offer be for the list price? If not, your seller could take your offer to mean you aren’t serious. This is a great opportunity for your realtor and I to talk about the various options and negotiation tactics to help you get the best deal!

Related: You Can Still Buy a Home While You Pay Off Your Student Loans

Seller Concessions (if applicable)

In some cases, buyers will request the seller to provide assistance with closing costs. This is called a seller concession. If you don’t ask, you probably won’t get it. However, including this in your offer may tell the seller your offer isn’t as strong as they’d like. This is another great topic to bring up with your realtor.

Company Name

I’m not trying to toot my own horn. BUT. Preapprovals from lenders who aren’t well known or who aren’t well established don’t carry the same weight as lenders with a GREAT reputation. I have often called the realtor receiving the offer to go over the specific strengths of my client and reassure them my clients are well qualified. It also gives me a chance to explain all the various contingency options I have available should the initial approved lender fall through.