VA LOAN CAPTAIN BLOG & Learning Center

What the Seller Doesn’t Need to Know

By: Grant Moon 07/03/14 10:11 am

We’re smack in the middle the home buying season and borrowers who are eligible for a VA loan have their preapproval letters in their hands. A preapproval letter is an essential bargaining tool when making an offer and if you don’t yet have one, your real estate agent will likely insist that you get one. The agent wants to be able to bolster your offer to let the seller know that not only are you serious about buying a home but that financing is not a problem. You’ve already applied for a mortgage and all you need to do is fill in the section about the property address. Oh, and the agent also wants to know if you’re qualified before driving you all over town looking at homes for sale.

Your VA preapproval letter will be issued after you’ve completed a VA loan application and provided your loan officer with the requested documentation. You can expect to provide copies of your most recent pay check stubs, copies of your bank statements and have your credit history reviewed. On lender letterhead, your preapproval will identify you, state that you have applied for a mortgage and that all you need is a property. But that’s it. There are some things the seller’s agent might ask for but it’s none of their business.

The seller has no claim to know what your credit score is. Your lender won’t have your credit score on the preapproval letter. The seller doesn’t need to know how much you can qualify for. All the seller needs to know is that you are preapproved to buy and finance the subject property. And of course the seller doesn’t need to know anything regarding your job such as how much you make, where you work and what you do for a living. Don’t be surprised that some VA qualified buyers will be asked one or more of those questions. But don’t worry, none of that is any of the seller’s concern and there’s no need to answer any such queries.

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