Not too many years ago, becoming pre-approved before searching for a home was unimportant. Now, it’s almost mandatory.
That’s because a few years ago almost anyone could get a mortgage loan. Now that the banks have tightened up on their regulations, it isn’t so easy.
In addition, thousands of consumers who had high credit scores lost that status when the credit card companies suddenly slashed credit lines. Since 30% of a credit score is based on how much credit you use compared to how much you have, credit scores plummeted overnight.
Because of these changes, sellers are wary of accepting offers from buyers who don’t have that pre-approval letter in hand. They simply fear taking their homes off the market without some assurance that their…