When there is a demand, it is natural that people will try supply to meet the demand. At present, many lenders are coming but their growth exceeds the growth of mortgage takers. This triggers more competition in the market making lenders more creative in their marketing strategy.

One of the strategies of the lenders is giving out pre-screened and pre-approved mortgage offers.

When a person applies for a mortgage and the lender gets the credit report of the person, information about the borrower becomes available to other lenders. Lenders become aware that the person is applying for mortgage. This is due to the fact that credit bureaus are allowed to identify mortgage applicants and make the information unrestricted.

Other lenders will take advantage of this and will try to offer the borrowers different attractive offers. Often times the borrower will receive a pre-approved credit. The offers are pre-screened as the information about the borrowers is available from the credit bureaus. The information include that the borrower lives in a certain ZIP code, possesses a particular credit score, obtained a specific number of loans which can help the lender determine if the borrower is worthy to be pre-approved.

The borrower should just let the offers come before closing a deal with a lender. There is no obligation on his part. He should just use the offers to evaluate which lender can give the best offer.

These pre-approved offers won’t exempt the borrower from the process of application and must conform to the lenders requirements. During application, the borrower should carefully scrutinize what are written in the contract. He must make sure that what was in the offer and what he wants is included is written in the contract upon signing.

As the saying goes, “be careful of the fine print.”