The following is an edited excerpt from Phil Mitsch’s Book “How To Have A Successful Lending Attitude.” This Book is the first of 4 that comprises his Mortgage Loan Officer Solutions Program and it is currently available.
My Philosophy Toward A Mortgage Pre-qualification Versus A Mortgage Pre-approval Is As Follows:
Traditionally home buyers, home sellers, real estate licensees, mortgage licensees, attorneys, financial advisors, and other miscellaneous servicing company personnel who assist in the performance of the entire home buying, home selling, and lending processes have been and still are confused between the terms Mortgage Pre-qualification versus Mortgage Pre-approval. It is absolutely critical for all of these categories of people to thoroughly understand: 1) the difference between real estate buyers getting pre-qualified for a mortgage versus getting pre-approved for one, and 2) the benefits of getting real estate buyers pre-approved. Accomplishing these things can prevent a lot of anger, anxiety, emotionalism, frustration, arbitrations, mediations, threats of lawsuits, and actual lawsuits from occurring.