Real Estate Help Library Pre-Qualification (PQL) Buying, Paperwork

Important Note:

AAR owns these forms and as such I cannot display them on my website. You can go get the document if you want to see it ahead of time from AAR Sample Forms here, then click “Pre-Qualification”.

The Pre-Qualification Form is one of the only forms available for public use on AAR’s website. The reason for that is that agents have to provide it to lenders to fill out on behalf of clients now that the purchase contract specifies that this specific form is to be used instead of some generic bank generated document.

What is a Pre-Qualification

 

The pre-qualification is essentially a bank stating that this borrower qualifies for a loan of this amount based on the information they have provided us. This document starndardizes the pre-qualification forms that used to come in from all kinds of banks so it is easier to read and understand, and shows what te bank has and has not received from borrowers, and for certain types of governemtn loans, verifies they have given the borrower federally required documents.

Sellers: You should receive this as part of the Purchase contract. Although it is only as good as the information the borrower has given to the lender, it can give you a little understanding of the borrower's ability to qualify for the loan. You should review it but not count on it.

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3) Interestingly, this form should be filled out even if they haven’t been pre-qualified. This box will be checked if they have not consulted at all with a lender.

4) Buyer’s name will be here

7) buyer’s married status

8) is the buyer relying on the sale of their current home to qualify for the loan

9) is the buyer relying on you, the seller, to pay some or all of their closing costs

Note: in a VA loan, buyers are not allowed to pay certain fees and they must be paid by seller if agreeing to the offer

12)is the buyer using down payment assistance program (usually a state or federal program)

13) type of loan

14) will they be living in the home

15) what type of home is it

16) still more options for what type of home

17) FHA loans specific document

18) did the lender talk to the buyer at all about anything related to the loan

19) did the lender already run a credit check

20) buyer can pre-qualify for this amount _____________

Note: make sure this amount is at least what the purchase price of the home is, or else the buyer has some kind of plan to make up the difference

 

21) principal and interest is : _______

22) PITI and HOA not more than ________

23) Interest rate max

25-28)

These lines show what kind of documents the bank has received from the lender. You can kind of gauge how much effort they put into verifying the buyer’s ability to qualify for the loan, but don’t place too much faith in this document as a whole

32+

Lender’s information

42) Buyer should sign it, but it usually comes straight from the lender and buyer’s don’t usually sign it. If it’s not signed by the buyer, don’t worry about it. It doesn’t affect the contract in any way as long as the buyer (or lender) has provided it to you, which, if you’re reading this, they have.

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