Some purchasers bring with them, when looking for a home, a pre-approval for a mortgage, but how much stock does that really hold? And should you consider this a green light to move full speed ahead?
According to real estate attorney James Misiano of Misiano Law in Hauppauge, “This means, in my humble opinion, very little.”
“A pre-approval simply states that if the unvetted information the potential purchaser/borrower gave to the lender is accurate, and if their credit checks out, then they may qualify to purchase your home. Remember, this is all unvetted information and should be considered as such.”
To be pre-approved for a mortgage means that a bank or lender has investigated your credit history and determined that you would be a suitable candidate for a mortgage. However, pre-approvals may only be good for a limited time. They usually signify that a lender is ready and willing to lend you money, but not quite yet as they will require verification of financial status and credit-worthiness.
“The contract will still be contingent upon the purchaser obtaining a mortgage. Therefore, I would not prefer one buyer over another just because of this pre-approval,” said Misiano.
James F .Misiano, P.C. has been representing home buyers and sellers for 38 years. He owned and managed a Title Abstract company for 12 years and is expertly familiar with title insurance issues – and with the solutions. If you are buying or selling a home, call Misiano Law today for a free consultation.