| In the early part of 2008, the phrase "a perfect storm" | | | | index for those loan application processors when they |
| was thrown around anytime anyone talked about the | | | | sift through all the various records. |
| present-day mortgage market. The sudden severity | | | | If you, as a home buyer and loan borrower, have all |
| of the in the mortgage market has led to psychological | | | | your background records in place and provide a |
| effects that are bigger than the financial effects. | | | | pre-qualification letter, you often won't even have to |
| In particular, lenders and other financial institutions have | | | | visit lenders personally. On the other hand, without |
| built up a strong skepticism and apprehension when it | | | | this, the present borrowing climate will make it more |
| comes to choosing who they will, or will not, loan to. | | | | difficult than ever for you to secure your loan. |
| As a result, pre-qualification letters for loan customers | | | | Keep in mind that a pre-qualification letter will not |
| have become more important. | | | | guarantee you a loan, nor will it guarantee your loan |
| Lenders and banks have always required significant | | | | application will get processed more quickly. There is |
| proof before loaning a large sum of money for | | | | no guarantee, once you submit your application with a |
| something such as a mortgage. A pre-qualification | | | | pre-qualification letter, that your lender won't ask for |
| letter is very helpful to the borrower in convincing | | | | more information. However, it is extremely likely that, |
| banks to take them seriously. Pre-qualification letters | | | | if you present a pre-qualification letter with your |
| help ease the minds of banks and lenders, and | | | | application, your application will be processed much |
| convinces them, for the most part, that the borrower | | | | more quickly, probably immediately. In some situations, |
| will not break the terms of the loan. The | | | | that pre-qualification letter will allow you to skip certain |
| pre-qualification letter is a token that the borrower | | | | optional steps that are sometimes required in order to |
| fulfills various criteria that make them a low risk and a | | | | establish your worth. |
| desirable loan customer. It also greases the process | | | | Therefore, overall, a pre-qualification letter can be held |
| of securing a loan, because it encourages the loan | | | | as an instrument to increase your standings in the |
| processors that this loan application is worth spending | | | | eyes of a home lender. |
| their time investigating. It even serves as an easy | | | | |