In the good old days like 2002 to 2007 when everyone easily got their loan approved, the Pre-Qualification letter used to be an afterthought. So buyers had the motivation of acquiring the new property to get them started going through the invasive RPITA (Royal Pain In The Ass) part of working it out with the banks, down payment amounts, interest rates, income verification and all the other bank stuff.
The personal questions from the bank seem like an invasion of privacy.
Who wants to go through that when you don’t even have a property in mind?
We didn’t worry about the Pre-Qualification letter and I can’t remember anyone ever getting turned down from 2002 to 2007, except for this one guy who had all his money in his company’s stock and it cratered as we were about to sign a purchase and sale agreement. Bummer!
So everyone got their mortgage approved. If you didn’t have a down payment, they would lend that to you also.
This speaks to the fact that it was too easy to get a mortgage.
As I like to say- ” New Day My Dear”
For those who have read my “Buying Boston Real Estate 101″ course, AKA the 40 or so blog posts currently on this site, I don’t need to go on any more than I have about all the advantages of being represented by an Accredited Buyers Agent. I am always absolutely astonished when I hear of someone NOT using a Buyers agent.
It used to be so easy, buyers would just call an agent, ask to see some properties and if the agent asked about a Pre-Qualification letter, the buyers would just reassure them that they could produce one. And most buyers could produce one but then again its a new day my dear.
Buyers, Be Represented, Not Sold!
Written By RE/MAX Destiny Accredited Buyers Agent Jeff Persons - 617-512-3443
More articles by Jeff:
5 Worst Questions To Ask Your Buyers Agent
A Boston Buyers Agent Says Skip the Spring Market, Wait Until Autumn
How Boston Real Estate Will Be Helped by Rising Interest Rates
Buying Boston Real Estate Without a Buyers Agent is Like Going Into Court Without An Attorney
How I Help “Out-Of-Towners” Find Their Spot Within Boston Real Estate and Boston Suburbs
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Buying Boston Real Estate? Start With A Pre-Qualification Letter
