Mayday Mayday Mayday !!!

Mortgage and Lending with Absolute Mortgage

Now that I have your attention......I am not in distress.

But homebuyers who are not property educated during the pre-approval process may be in distress when they are in contract and underwriting scrutinizes their qualifications.

I often work with buyers who say they have already been pre-approved.  When we sit down and go through the loan process, step-by-step, I continually hear, "the other loan officer did not tell me that" or "no, the other mortgage person did not explain impound accounts" or "no, I was not told I might qualify for a down payment assistance program".

The pre-approval process is the best opportunity to educate buyers so they have enough information to make informed decisions moving forward.  It is also a time to prepare them for potentional pitfalls, and the necessity of responding promptly when asked for something by their lender. 

Good communication and clear explanations are key components of working successfully with buyers throughout the entire process.

Mayday is an emergency code word used internationally as a distress signal.  It is derived from the Frech term "venez m"aider" meaning "come help me".   If help is generously given throughout the loan process, then buyers who encounter difficulties will be able to get through them without resorting to a distress call.

Comments (2)

John Rakoci
Eagle Realty - North Myrtle Beach, SC
North Myrtle Beach Coastal Carolinas

I have 3 great mortgage people on my 'suggested' list. Being in a resort area the 'back home' bank is not aware of how our market works. There has never been a problem for those that use the list and understand the restrictions of the pre-approval letter received from a suggested lender.

May 01, 2011 11:05 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

You make great points.  Instead of pushing people to get qualified "so we don't waste our time" as I continually hear from agents, we should promote the benefits of being preapproved to the buyers, as you have outlined.  Good info!

May 01, 2011 11:37 AM