It's a Loan Officer, Not a Serial Killer!

Reblogger Richard Iarossi
Real Estate Agent with Coldwell Banker Residential Brokerage 531132

Many of us can relate to Eric's Featured Post about the reluctance of buyers to speak to a loan officer. We do have to ask ourselves how committed a buyer might be if they won't speak to a lender, before going out and looking at houses.

It's our business, and we get to run it within the laws of our State, but it's just good business sense to make sure that buyer you're driving around, can actually qualify to buy a house.

Original content by Eric Michael

It's a Loan Officer, Not a Serial Killer!

Scenario #1. You call a real estate agent because you saw a house online and would like more info. Agent describes the house and you get excited, it sounds exactly like what you're looking for. You say, "I gotta see this house! When can we go?" Agent's response, "Have you been in contact with a Loan Officer?"

Scenario #2. You and your spouse have been driving around the city, looking for "for sale" signs in front of houses that you're interested in. This is one of the areas you've always wished you could buy your first house in. House looks great. There's even some young kids playing basketball next door. They seem to be right about the same ages as your kids. Your wife dials the number on the sign. "Hi, this is Eric. How can I help you?" "Um, hi. We were wondering if you could tell us more about the house at 123 Perfect Lane?" After hearing all about the house, you've just gotta see the inside! When you ask, the response is "Do you have a pre-qualification letter from a lender yet?"

Scenario #3. You just got a raise at your job. The lease is just about up on your apartment, and a few of your friends have purchased homes recently. It's your turn. You sign up for lists of homes from a dozen real estate sites. They're all the same lists, but whatever. You thought there might be something special out there and you didn't want to miss it. You find a few that you want to look at. That's when you call your friend, who's been in the business for a while. You tell him that it'll be cool to hang out and look at some homes, maybe get a few beers afterward. Friend agrees and says, "Before we hook up, have you talk to a lender yet? If not, I have a few that I've worked with in the past that I could recommend, because we need to make sure you get pre-approved before we start looking at homes."

See the pattern here?

There's a reason that we want you to talk to a Loan Officer before we go out to look at homes. A few reasons, actually.

  • You need to take a look at your credit history. Lenders have minimum credit scores that need to be met before lending money for a house.
  • You might think that you can afford a certain amount, only to learn you have to look at homes that are a lot lower than you thought. Conversely, maybe you can qualify for more than you thought, and your dream house just got a lot nicer. Looking at homes that you could never qualify for is depressing. Trust me.
  • We run a business. We don't get paid unless you purchase a house. If you can't purchase, we can't waste our time, money or resources. It doesn't make business sense.

Debt to income ratios, time on your job and amount needed are a few more things that they Loan Officer will have to figure out before determining how much, and IF you can qualify for a mortgage loan.

Sometimes it's scary to find out what your credit is, or what you can truly afford. Sometimes it's even better to continue renting for a while to save up more money for that down payment or to pay off a few credit cards. The Loan Officer will help determine the best strategy for you.

Ultimately, a trustworthy Loan Officer is an integral part in the house/condo buying process. They can be an ally. As long as you remember, It's a Loan Officer, Not a Serial Killer!


Eric Michael, Real Estate Professional
Remerica Integrity, Realtors
41000 W. 7 Mile #105
Northville, MI 48167

Cell: 734.564.1519

Fax: 248.912.9996

www.ShortSaleInfoMI.com

www.EricMichaelOnline.com

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Rainmaker
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David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Great reblog, funny witty and factual, Love it!

Head in the sand routine accomplishes nothing find out if there is a problem and address it avoidance resolves nothing

Mar 09, 2012 11:56 AM #1
Ambassador
941,959
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

Rich, I just met with buyers tonight that have been reluctant for THREE MONTHS to get qualified.  THREE MONTHS.  I finally relented and drove over 70 miles round trip to show them a real dog, but just so that I could finally get in front of them and tell them that they are wasting their time drooling over property we don't know they can buy. 

Oh, they can text and email, trust me.  But, they just don't GET it...but after tonight they do.  And, they are meeting with one of my guys in the morning.

Mar 09, 2012 11:58 AM #2
Rainmaker
130,096
Carolyn Shipp
Source 1 Real Estate - Mineral Wells, TX
Mineral Wells Texas Real Estate

We have people that just refuse to get pre-approved.  Last week we had a woman that wanted to see a property.  When the agent asked her if she had been to talk with a loan officer her reply was, "it doesn't matter because it's none of your business."

He said she was pretty nasty about it.  She called us lazy, we didn't want to work for our money, we were trying to get money for doing nothing.  Anyway, he didn't get nasty back, he just said thank you for calling and hung up on her.  

A couple of weeks later we got another call from her. She was still nasty and still trying to find someone who would work with her.  She was really mad because she said she couldn't get anyone to work with her...

Hmmmm, I wonder why...

Mar 09, 2012 12:43 PM #3
Rainmaker
544,156
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Rich, thanks for re-blogging this. I appreciate it!

Mar 10, 2012 04:16 AM #4
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Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Rich, I received a call yesterday from a woman who wanted a lot of information about an area that she wanted to live in. I asked if she had spoke to a mortgage person yet and her reply was "No." I recommended that she do so to avoid becoming disappointmented if she did not qualify. Michael's blog is oh-so correct!

Mar 10, 2012 04:40 AM #5
Rainmaker
2,763,059
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Richard,  It not only makes good business sense, it make sense period!  Nobody gets in my car until they have sat down with my lender first.   I'd rather watch paint dry than to drive around with an unqualified buyer. 

Mar 10, 2012 10:23 AM #6
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