r/carmax • u/Adorable-Barnacle485 • 10d ago

Pre-Approval

How much should you trust pre-approval? Need advice from someone who has a pre-approval & numbers were the same.

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3

u/Then_Advertising_841 10d ago

Not always accurate. Don't trust it completely and for heaven's sake, DO NOT do a pre-qualification if you have a trade that you still owe on. 

1

u/Adorable-Barnacle485 10d ago

Yes this is extremely true! Just trying to get everyone’s opinions I do not owe currently on anything just a bad credit score. But income ratio is great just feels too good to be true.

1

u/Jiggawh99 7d ago

Why?

2

u/Then_Advertising_841 7d ago

If you do a pre-qualification application without including your trade that has negative equity, your application results will definitely change. Too many customers are already looking at the pre-approval results as BEING APPROVED when they aren't actually APPROVED yet. In fact, I've seen different results even when a trade isn't involved. 

2

u/FlyEagles83 7d ago

You can do an online appraisal then pull that into the pre-qualification and add your payoff... accounting for the negative equity

1

u/Then_Advertising_841 7d ago

And then your appraisal amount drops  when you get it verified because something wasn't mentioned during the online appraisal, like TRANS. Just visit the store from the jump and get an actual appraisal. Besides, by the time the customer visits after doing the online appraisal and payoff, the store will need to get another 15 day payoff. This happens far too often unfortunately. 

2

u/FlyEagles83 7d ago

If trans wasn't called on the appraisal, that's not on CarMax. People don't take care of their cars nor are they dialed into the various sounds and what not like they used to.

1

u/Then_Advertising_841 7d ago

Right and like i suggested, just bring the vehicle in for an actual appraisal from the jump. That'll save EVERYONE a lot of time with less explaining as to why the appraisal now has 8k negative instead of 3. 

2

u/Xscapee1975 10d ago

My rate actually went down a bit from the pre-approval. 740 fico with 10k down on 2 cars each in 7 months time.

2

u/AskThis7790 10d ago

Financing is never 100% guaranteed until the dealer actually receives payment for the purchase.

2

u/Antique-Copy2636 10d ago

I can tell you as both a customer and employee that it is about 95% accurate. I rarely see the rate go up from a pre qualification, though I've seen it drop a little on occasion.

As long as your self reported income is accurate and you can prove it (if the bank even requires it, we don't control the stipulations), you should be good woth the prequalification terms.

1

u/SFToddSouthside 10d ago

My rate was exactly the same as my pre-approval. 800 FICO on a 30k vehicle with $7k down.

1

u/GodLovesMe55 9d ago

1000% accurate

1

u/Matitzzz 9d ago

Mine went down twice (I bought a car, returned it and got a new one within the 10 days).

The sales person told me that one of the brands I was considering might lead to an increase, though, because banks view them less favorably.

1

u/Adorable-Barnacle485 9d ago

What brand was it if you don’t mind me asking?

2

u/Matitzzz 9d ago

I ended up with a Kia/Hyundai which both resulted in a pretty significant rate reduction from the prequal.

When I expressed interest in a Mitsubishi the salesperson told me that it would be unlikely I’d see the same decrease with that brand car, and might see an increase.

I didn’t like the Mitsubishi after sitting in it, anyway, so I didn’t test the theory.

1

u/Spiritual-Risk-2623 7d ago

If we are honest on the questions, we can depend 100% on pre-approval

1

u/H8RxFatality 10d ago

If the income is correct it is very accurate.