This is the fourth article in a blog series on online home loans in Northern Virginia. So far, we’ve covered Part 1, Part 2, and Part 3.
Online Home Loans – Factors to Consider When Putting Together Your Offer
If you were selling your home and you could pick between a buyer who was financed by an obscure internet lender who didn’t have a very good loan to closing ratio versus a buyer who was getting a loan through a stellar local lender, which offer would you choose? Northern Virginia homeowners who have sold properties before and experienced listing agents have seen seemingly great contracts fall through because an incompetent loan officer didn’t do their job in vetting a buyer’s financial qualifications. As a result, they have become increasingly wary of lenders whose reputations cannot be easily verified.
How Can the Quality of Your Pre-Approval Letter Impact the Strength of Your Offer?
A good pre-approval letter should state that, based on the lender's verification of a buyer’s income, credit, and assets, they have been pre-approved for a loan. Many online lenders and some national credit unions that do home loans issue pre-approval letters that simply state that based on what a buyer has told them about their financial qualifications, they are pre-qualified for a loan up to a certain amount. These “pre-approval” letters aren’t worth the paper they’re printed on…