Realtors do you take the time to interview the loan officer who's pre-approval is with the buyers offer to purchase prior to submitting that offer to your sellers ?
The cold hard, being a loan officer today requires much more than taking a loan application, running credit, presenting the rates & fees to the client and if they agree to move forward, handing it off to a processor.
A huge part of being a loan officer today is educating oneself on the ever changing guidelines that can effect the out come of a loan program and properly interviewing prospective clients prior to issuing their pre-approval. This for me anyway insures that they are qualified to purchase with no contingencies or what if's, which in my mind today is no longer a formality its a requirement. For me issuing a pre-approval to a client who is buying a home puts my name and reputation on the line and because my business is built on the trust and confidence my referral partners put in me, I take my business very seriously.
At the end of the day I am responsible for protecting the interests of all those involved in that transaction by providing the financing that I said my client was qualified for on my pre-approval.
Questions I encourage my Realtor's to ask, privacy issues do not allow specifics to be answered however I always give ranges:
- What are the buyers credit score ranges.
- Does their credit score qualify them for this loan program.and loan to value.
- Are their debt to income ratios in line with the loan program you qualified them for.
- Do they have a 2 yr job history. ( not always required but a good thing to know)
- Did you review their income documents, (very important if self employed to review tax returns)
- Did you review their asset documents.
- Is there anything you can see that would prevent these buyers from closing as scheduled on this property. ( except for appraisal or title related issues)
- Will you inform me right away if you encounter any red flags at all.
While I a sure there are many other questions you might ask, these are what I feel backs up the words on that document we call our pre-approval.