Before you send an offer to a seller which should you have, a Pre Approval or Pre Qualification letter?



Transcript from video:

Mike:               Hi, this is Mike Hays with the Hays King team at Keller Williams. I'm going to be talking to Rachelle Shah with One Trust Home Loans today about pre-qualifications and pre-approval letters. So let's go check it out. Rachelle, how are you doing today?


Rachelle:           Wonderful. Thank you so much for the introduction.


Mike:               So Rachelle, today we're going to answer a lot of questions about pre-qualification and pre-approval letters. Can you tell me what your opinion is regarding pre-approval and pre-qualification?


Rachelle:           I can. So I have a strong opinion when it comes to pre-qualification versus pre-approval. I always advise my realtors' clients and my clients to come in and bring me all of their documentation to get pre-approved, not just have a 15 minute or so phone conversation with a lender, which would be the difference between pre-approval and pre-qualification.


Mike:               So when you talk about documentation, what type of things should a buyer start to think of what they need?


Rachelle:           Pretty simple. To start the process, we just need pertinent documentation such as two years of tax returns and W2s, two pay stubs, two bank statements and any mortgage statements on any other properties owned.


Mike:               Are all lenders the same when it comes to doing a pre-qualification or pre-approval?


Rachelle:           I would say that there's actually a large difference depending on how thorough the lender is. Many lenders will issue a pre-approval letter where they're really not pre-approved. They haven't gone through and verified documentation. They've just done a pre-qualification and spoken to a client over the phone. So there is a huge difference, and clients have to make sure that a lender goes through and verifies and reviews all of the documentation that they have furnished to them.


Mike:               That's great. What do you think as a buyer, what type of questions, if I was a buyer, what type of questions should I be asking you?


Rachelle:           I would, first of all, make sure that the lender has gone through and reviewed all that documentation and been thorough with the pre-approval, because you hear all the horror stories of lenders issuing pre-approval letters and then deals falling out because they don't qualify. So that's number one. And then secondly, they should always go through an estimated fee worksheet and review closing costs, the loan program, go through all the details of the program that they're pre-approved for so that there aren't any surprises during the process.


Mike:               Perfect. Well, thank you very much for your time today, and if somebody was looking for you or trying to find some information from you, where would they find you?


Rachelle:           My direct phone number is 775-762-0826, and I would love to assist any clients in need of pre-approval.


Mike:               Fantastic. Well, thanks again. This is Mike Hays with the Hays King team at Keller Williams. Rachelle, I really appreciate your time today. You have a fantastic day.


Rachelle:           Thank you. My pleasure.


If you have any questions about real estate or lending here is our contact information:

Rachelle Shaw

One Trust Home Loans



For all of your real estate questions:

Mike Hays & Shaina King

Keller Williams Group One, Inc.

Hays King Team

Lic #: S-174041 & S-176029

(775) 453-4625