OK, so I'm having a conversation with a Prospect and he says, "Yeah, I've been PreApproved by XXXX and YYYYY mortgage companies." (I'm a mortgage originator and would like to do his loan; he's easy to get along with and calls back right way - BUT, he's Self-Employed).
So, I ask, "Did you provide them with your last 2 years Tax Returns and K-1's"?
He replies, "No; they didn't ask for them"
"Really?" (I respond, wanting to fire all the LO's who are still doing loans and don't have a "clue')
I follow up with, "Well, then what you have is a "PreQualification", not a "PreApproval" (essentially, what's happened here is that someone's taken an Application, Pulled Credit and maybe run an AUS; they have not looked at the taxes or underwritten the file.)
"The way I work is: I collect your last 2 years Tax Returns, K-1, last 2 months Asset statements and then process your
Application and pull Credit"; I send your file to an Underwriter who has up to 3 days to respond - with a TRUE "Pre-Approval" (drop in the Contract, Appraisal, Title and a few updated items and we're good to go)."
So, "Why" am I writing this Blog now; well, I've had to work under the old system for so long, it's a real pleasure to work in a system where an underwriter has 2 days to look a Pre-Approval request and do a total underwrite. (a little more painful upfront, but when my clients close on time, or early...)
Have a great day!
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