One thing people often wonder is, “To sell my home in Denver, should I require pre-approval letters?” The reason why so many people wonder about this is that pre-approval letters used to be considered normal. Nobody went out looking for houses to buy without having a pre-approval letter from a lender in their hands.
Pre-Approvals Still Considered Normal?
letters are still considered standard practice in real estate. Most
sellers and their agents prefer them because it gives them a sense of
security concerning the offer being placed. Although they are still
considered a normal part of real estate offers, sellers need to be
careful when accepting them.
of Pre-Approval Letters
While the idea of a pre-approval letter sounds great, it’s not always the case. Sellers wondering if they should require one to sell a home in Denver should understand that they aren’t guaranteed financing. This is why every lender who issues one of these letters states they are not responsible for any misinformation presented by the buyer.
issuing a pre-approval letter, most lenders are simply taking the
word of the buyer. In some cases, they aren’t even checking credit
before approving them. They are not requesting any documentation to
prove income. They believe what the buyer tells them about money in
savings and what kind of income they have. What happens then is many
buyers are denied financing after putting in an offer because their
financials don’t match what is needed.
Connect with Colorado Home Realty for more information.
2509 Main St, Littleton, CO 80120, United States
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