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Lenders with Integrity Wanted

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Real Estate Agent with RE/MAX Sunset Coast

Last week, I got a call from a client who has been looking for homes. She had gotten verbal pre-approval for a loan through a local bank, to whom I had sent her. The loan officer has always been very nice and curteous, but not very prompt about returning calls to me. In this case, I called him to confirm that I'd be able to get a pre-approval letter in the morning. He said it was not a problem, and that they were good to go.

My client wanted to see a specific home, and wanted to schedule a showing on the weekend. After contacting the listing agent, I discovered that there was an offer on the property, but that it had not been accepted. The listing agent admitted that the offer "wasn't the greatest".

I called my client back, and asked how interested she was in this property. I told her that if she thought that it might top her list, we should go today to see the house, instead of waiting. She agreed, and she and her boyfriend met me at the house at 8PM. It was dark, but I carry a very powerful light for exterior inspection, and they were very pleased with the house. The wanted to make a full price offer.

We met at the McDonald's in town, since there was nothing else open, and we wrote the offer. We were all very excited. Their daughter was nearly asleep by the time we had finished. It was after 10PM by the time I got back to my office.

The next morning, I was shocked when the loan officer told me that he was not going to be able to send me the pre-approval letter. He told me it was his fault for not knowing the program as well as he should. The interest rates had changed, and because her ratios were so close, he told me he'd have to wait til May to get them qualified. My client's income increases in May when she takes on seasonal work.

I was disappointed, and I told the L.O. that I was. He was in a meeting, and he said he'd call me back to discuss it further. I haven't heard from him.

I trusted what he said they were good to go, and that was my mistake. I know not to trust him in the future, and that I'll wait to show the house until I have the letter in my hand. Of course, sometimes those letters dont mean much. I didn;t need to be out til 10PM writing that offer at McDonald's. Their little daughter didn't have to be up so late there, she could have been home, snug in her bed.

What really burns me? After he knows that I'm disappointed, he didn't call me back after his meeting. I really appreciate when people recognize that there is a problem, and act, instead of ignoring it. In a competitive business like lending, it doesn't take long for clients to decide they need a new lender.

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Dave Woodson
Dave Woodson - Chesterton, IN
Not the Average Agent

This is why I hate pre-approvals and pre-quals.  When I give you a pre-approval I have taken a complete application on the client, ran them through the DU (desktop underwriting) and as along as I can proof what they told me on the application.  We are good to go, unless the property is wacky

btw, I am licensed in Michigan

I am Dave Woodson - your mortgage consultant for life

www.indigofg.com & www.uwinfin.com

 

Mar 10, 2008 08:15 AM
Christopher Bonta
The Bean Group - Londonderry, NH
Realtor, Integrity and Honesty

You are correct about the way you were handled and the fact that this guy did not get back to you and is slow (as you put it) doesn't give me that warm and cozy feeling about him. I would move onto anothe loan office you can build a relationship with.

One other thing, even if this guy gave you a pre-qual letter, since the rates changed over night your people probably would have not been able to buy this house. He should have told you they were "maxing out at $XXX price" so when you spoke to your client during the day you could have advised her to lock her rate that day so she could have remained qualified. When she would not have been able to lock the rate, since he did not do his job and have the pre-qual done, you would have known that they were not qualified and not wasted your time.

Mar 10, 2008 08:36 AM