Loan Pre-Approvals Vary Widely

As this article illustrates, in too many cases, it’s easy to go online or call a lender and be preapproved for a loan. In a hot market like Denver, this preapproval is critical to being competitive with other buyers. But having a lender write a letter saying you’re preapproved can mean different things. Many preapprovals are given with little to no due diligence and will not carry you to closing–which is the point. For buyers, it’s incredibly important that you work with a lender who does their homework up front so you know you’re good-to-go. And, for sellers, your broker needs to know how to probe the buyer’s lender to try and discern just how solid a preapproval is. Otherwise, both parties may have been ‘preapproved’ to have a deal fall-thru.