The days of poor credit and no downpayment are over. There are many loan programs out there that will work for the majority of homebuyers including first time homebuyers.
It is imperative that buyers, realtors, cpa's, financial planners, attorneys, etc. work with lenders that spend time each and every day staying abreast of market changes including programs and lenders. It is anticipated that 40% of the current originators will be finding a new occupation to generate income. There are many major lenders that are doing well one day, investors are advised to buy their stock, and then close their doors a week later. Originators need to know who to lock their loan with that will still be in business when their purchase closes.
Realtors should not show any homes unless a client has been pre-approved, not pre-qualified. Loan programs are changing so rapidly that pre-approvals can be upheld with underwriter conditions, but if it's not in the pipeline and guidelines change you have to go with the new guidelines. Realtors should RECOMMEND that their buyer get a free pre-approval with one of their "preferred lenders" not just someone they found by happen-stance.
It is always in a new clients' best interest two get two quotes but it should not be a sellers agent requiring two pre-approval letters. We incur an expense with each pre-approval and a potential liability if we put in writing that we can do something when we can't. It is also timeconsuming for buyers to meet with lenders. Not to mention, that 90% of my clients are past clients and would not consider another lender. Sellers agents have asked my buyers agents if they can call me to verify my qualifications, etc. Needless to say, after the phone conversation they are assured, and have always accepted the purchase agreement. In other words, work with a professional - we will still be in business until we retire!
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