Problematic pre-approvals

Many pre-approval letters are worthless

Surprise surprise -- a recent national survey of real estate agents revealed that 39 percent of all pre-approval letters issued by Internet based lenders are faulty or invalid. Additionally, nearly 30 percent of all mortgage broker issued pre-approvals are also faulty.

As down payment percentages shrink as more buyers enter the market, the quality of offers is declining. I consistently receive offers on listings with 100 percent financing contingencies. You just have to wonder about the long-term ability of this type of buyer to actually repay a mortgage, particularly one with an upward adjusting rate.

Some 'Preapprovals' Aren't Worth Ink They're Printed With [Washington Post]

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