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Double Up On That Loan

By
Real Estate Agent with RE/MAX Gold Coast REALTORS

 

 

Word to the wise...when in doubt, double apply. In today's buyers' market, we as real estate professionals need to be aware of the possibility of frivolous loan pre-approvals. I have been in that circumstance where my seller and myself are very excited about the incoming purchase offer and open escrow right away, with hopes that the loan pre-approval from the mortgage broker is a for sure thing...only to find out days, if not weeks later, that it was never going to be.

Something so simple, to take those few extra steps and request that the buyer also get pre-approved with a lender you trust. You can reassure the buyer and explain that they are not required to use your lender, unless their loan representative cannot close the deal. Which is what we all want...right?

Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!
Absolutely, I suggest the talk to about 3 lenders! I try to get them to actually qualify for a loan prior to making an offer...save face...so to speak!  Good point!
Dec 11, 2007 01:59 PM
Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator
Lisa - absolutely, I agree! But please, PLEASE do this: tell both lenders you are double submitting. Otherwise it's like an agent doing a ton of research and then the prospect saying, "Thanks but Agent B already found those for us." That is if you are getting a REAL pre-approval. 
Dec 11, 2007 02:04 PM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
Get your cleints to people you know and trust. Avoid the internet lenders and certain brokers. I think one is enough if the one can give you the answers you need to proceed. It not like the lenders are really bsuy at this point.
Dec 11, 2007 02:07 PM
Joe Adams
Major Mortgage USA/Branch Manager - Montrose, CO

Apply and apply more.  One thing you always hear is that the more that check your credit the lower you score........ BULL, you get told that to keep you from being a good consumer and shopping.  FACT .... ALL LIKE INQUIRES IN A 30 DAY TIME FRAME COUNT AS ONE........ great advice to your clients

 

Side comment as a Cal Lu 1983 grad........... how has the area change in the last 20 years?

Dec 11, 2007 02:15 PM
Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator
Bill is right and if your loan officer tells you differently they either do not know the rules changed (which is scary) or they are lying (which is scary). There was a time when multiple pulls did affect your credit but even then only mildly. HOWEVER, there have been times when, for example, the borrower needed a 680 and had a 681 to begin with but upon second pull, for some OTHER reason, they had a 678 - for example - and because of other factors there could be no exception of the score. You do need to be aware of that as well.
Dec 11, 2007 02:25 PM
Lance Winslow
The Car Wash Guy - Malibu, CA
This is an absolutely excellent topic for discussion and it is vital that homebuyers understand this principle, they need to know what to do, or they will be left out in the rain activity.
Dec 26, 2007 06:14 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
If what Ken Cook writes can  happen, that is scary . I was under the impression it does not affect the score.
Feb 13, 2008 10:32 PM