Importance of Full Document Pre-Approval

By
Real Estate Agent with Keller Williams Realty - Cenla Partners Louisiana 0000073964

TRID-RESPA takes effect October 3. In a class yesterday, we learned that if a buyer is not full-document conditionally pre-approved before entering into contract, then expect delays. This means that the buyer has furnished all required financial documentation to the lender AND it has been verified.

Buyers: Don't even think about viewing houses until you attain full document conditional pre-approval with your lender of choice.

Sellers: When you receive an offer on your house, ask to see a full-document conditional pre-approval letter from the buyer's lender. If the potential buyer doesn't yet have it, keep your house on the active market while the buyer goes to get it. You can accept an offer contingent upon the buyer obtaining such pre-approval within a 5 business days.

I ran across a helpful toolkit furnished by the Consumer Finance Protection Bureau (overseers of these new regulations). Click the link below to view or copy and paste into your web browser:

http://files.consumerfinance.gov/f/201503_cfpb_your-home-loan-toolkit-web.pdf

Please share this post with all your friends, family, and co-workers. Knowledge is power. Tell them you got it from me.

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Rainmaker
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Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Good afternoon Margaret,,,we had a formal meeting on this yesterday and many more planned for those that could not attend.  Tks for sharing

Oct 02, 2015 05:11 AM #1
Rainmaker
491,096
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relo, Commercial, Luxury & Lifestyle, Residential

Margaret,

 

Having been a lender I can tell you that “full-document conditionally pre-approved” is an expense that lenders would prefer not to do. We are going to have to insist on it and drop any lenders that won’t do it.

Oct 02, 2015 11:09 AM #2
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Rainmaker
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Margaret Hickman

REALTOR, GRI, ABR, SRS
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