As competition between mortgage lenders has dwindled, the practice of offering mortgage preapproval is declining. Banks and other lenders still go through pre-qualification checks, but fewer preapprovals are being issued.
MarketWatch.com reports on the trend, saying lenders are instead giving verbal indications to sellers that would-be buyers are qualified, rather than written documentation that meets the federal definition of preapproval.
Do lenders in your area still offer preapproval for homebuyers? Have they scaled back? To help your listeners/viewers/readers understand how the mortgage approval process works and how it can impact the purchase of a home, interview lenders about how they prepare buyers, and ask if you can meet one of their clients going through the process.
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