Pre-Qual Does Not Equal Pre-Approved

Real Estate Agent with Wainwright & Co. Realtors

Hello again AR nation.  Just another week, and another learning experience. 

I'm currently working with a client to get them into their new home.  I love the whole experience of doing this.  However, it seems every home I sell brings a new set of hurdles to overcome.

A little back story...We signed the contract on a home about 4 weeks ago.  As is standard practice with most all agents now, I included a pre-qual letter with the offer.  After a little back and forth, we agree on the final price, and begin the loan process.  I'm sure we are all well aware that banks are very tight on giving loans right now, and you just never know what will happen.

Having said that, the only real issue I've had with the loan process, is that I was never informed that the initial loan was denied.  I know that mortgage brokers will re-submit to multiple lenders when necessary, but we were tentatively scheduled to close next Tuesday, and now cannot.  I found out one week prior to the close, that the loan had been re-packaged and re-submitted.

As I said before, I know this is part of the process, and we were trying to close in less than 30 days.  I would have really preferred to have been informed as soon as the first loan was denied, so I could have let the seller know that there was a delay, just as a professional courtesy. 

I'm not upset at my clients, or even at the mortgage broker.  It happens.  At least I know moving forward, I need to be a little more pro-active in gathering my information.  I just wanted to get your stories and oppinions on this matter. 

Looking forward to all the great responses, yet again.

Have a great weekend.


Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Even as the listing broker, it is good to be pro-active in calling the selling agent what's happening every few days. I don't think anyone should presume everything is going well. However, you would think that the lender or the buyer would have contacted you with this change.

Jul 29, 2011 02:18 PM
Lisa Dunham
Alexandria, VA
Associate Broker, Alexandria Virginia Real Estate

Todd, I applaud your calm attitude.  Yes, it would have made a world of difference had the lender informed you of what was going on.  I am assuming this is not your preferred lender.  I agree that in the future, you should probably take the proactive approach.  Best of luck on this one!

Jul 29, 2011 02:31 PM
Linda Urbick
RealtyOne Group - San Ramon, CA
Selling San Ramon Valley - 925-786-5132

Yes I know and even some loan officers think this will suffice. I check and double check with my clients to be sure that the letter they are giving me is the real thing and then I contact the loan officer to be sure as well.

Jul 29, 2011 03:38 PM
Kim Davis
available for employment - Harrisonburg, VA

Todd, you didn't get as many comments on this topic as I thought you would. As a lender, we try to stay in at least weekly contact with our client's realtor, and more as events unfold. With the market as it is now, I would have to have one really great loan file with all of the client's documents upfront to commit to a 30 day closing. We have some lenders in our area who say they can close in 3 weeks, but too mnay things can happen to slow the process down. I don't like making promises I can't keep. I think 45 days for the contract is just alot more comfortable time frame.

Jan 12, 2012 01:07 AM
Josh Perrington
Arkshire Financial - Marietta, GA

Great attitude Todd. So many times I've seen people take a much different approach than you. Sincerely great attitude buddy!

Aug 17, 2014 08:45 AM