This is the third in a series of posts designed to help prevent fallout when dealing with buyers that bring their own lenders to the deal.  Part I discussed down payment, and Part II income documentation. 

No one wants to start a new client relationship off with an argument about lenders. But if they arrive with a pre-qual letter from someone you don’t know, don’t automatically put them in the car.  These questions will help you determine if that letter is really worth the paper it’s written on. 

Remember, if the borrower really is pre-qualified, they’ve been through these questions and should have some very clear answers.

Question #3:  What are your Fico scores?

There is no mortgage-related topic that generates more myth and new, old wives’ tales than credit scoring.  Most consumers are somewhat aware of the condition of their credit, and some may even be able to tell you their scores.  Many people now subscribe to services that keep them updated on their scores.  Others recently bought a car, refinanced the old house, or obtained a free on-line credit report.  That’s not enough for our purposes. 

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