Home Sellers: Is your Buyer is Pre-Qualified vs Pre-Approved

This is a major question when it comes to listing a home. Buyer's Agents tend to submit pre-qualification letters with their offers. But what does this mean when attempting to use our Low Realtor Commission program?

Pre-Qualification Letter

This usually means that a RMLO (Residential Mortgage Loan Originator) has taken some information on the person and has determined their qualification price. This also means that some documents were collected to verify the buyer's income and most definitely their credit score.


This means that the RMLO has taken a Residential Loan Application that usually entails plenty of evidence needed to buy the home. The extra step is a very useful one, and it can give a clearer picture.

Why doesn't every Listing Agent ask for a Pre-Approval letter?

Because the formal Loan Application is a document with sometimes hundreds of pages. The process is so long, that the buyer usually needs to have a home in mind in order to continue the process. Lending is the biggest hurdle for a buyer, and it becomes an exhausting process.

Do not confuse Approval with Pre-Approval

Pre-approval does not mean that the loan file is Approved. That status usually comes only days before closing and plenty of factors are needed in order to achieve it. This includes an appraisal and other supporting documents that involve the borrower and the house.

Hope this helps!

Will Puente, MBA

Real Estate Broker

Expert Way Realty

#prequalified #preapproved

Featured Posts
Recent Posts
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

a Texas Licensed Real Estate Brokerage. Proud to be a local website from Texas.

  • Facebook Social Icon
  • Twitter Social Icon
  • Google+ Social Icon
  • YouTube Social  Icon
  • Instagram Social Icon

Houston Area

Atascocita | Baytown | Clear Lake | Crosby | Cy-Fair | Cypress | Galveston | Humble | Jersey City | Katy | Kingwood | Klein | Memorial | Pearland | River Oaks | Spring | Sugar Land | Texas City | The Woodlands | Tomball | West University

Dallas - Fort Worth Area

Addison | Allen | Arlington | Carrollton | Coppell | Dallas | Denton | DeSoto | Euless | Ft Worth | Frisco |  Garland | Grand Prairie | Grapevine | Irving | Lewisville | McKinney | Mesquite | Plano | Richardson | Southlake | Wylie

San Antonio Area

AFB | Alamo Heights | Borerne | Canyon Park | Cibolo | Converse | Fair Oaks | Floresville | Helotes | Hondo | Kirby | Lackland Terrell Hills | Lakehills | Leon Valley | Live Oak | New Braunfels | Pleasanton |  Ranch | Schertz | Seguin | Selma | Timberwood Park | Universal City | Windcrest 

Austin Area

Bastrop | Brushy Creek | Buda | Elgin | Cedar Park | Georgetown | Hutto | Jollyville | Kyle 

Lakeway | Leander | Lockhart | Luling | Manor | Pflugerville | Round Rock | San Marcos

Shady Hollow | Taylor| Wells Branch 

Information About Brokerage Services