Why Isn Prequalification Letter Good Enough for the Lender?
For your protection and the sellers, we must make sure that buyers are bona fide buyers. Lenders have toughened lending standards so we need assurance that the buyer can definitively close. Therefore, we must have the buyer go through the credit review process before we can move forward with negotiations. The lenders in most cases are requiring this as well and in the past we have wasted time with buyers who would never have qualified had their credit history not been reviewed. That said, we require pre-approval or full approval letters with the short sale submission package.
