Did you know...Banks are moving away from Pre-approvals. Why?

By
Mortgage and Lending with Mortgage Resource Plus NMLS LO#138228

 

 

It has been said that offers to purchase are stronger if you have a Pre-approval. Pre-Qualifications are weaker because it is based on conversations only with the buyer. But what if you have a Pre-approval and you find out it was only based on a conversation not verified information?

I just received a call from a Realtor that had received a Pre-approval from a bank, wrote the offer, got it accepted to find out it was only based on a verbal conversation and they did not qualifiy. Beware and you may want to check it out first. Buyer's don't understand the difference if it is not explained.

It has been said recently in publications that Banks are starting to move away from Pre-approvals. They are too time consuming. 

You need to know the buyer is GO TO GO!. Yes, it is no guarantee that something won't change but if your Mortgage Broker has reviewed income, asset and credit and worked through the scenario that is a true Pre-approval.

Not based on a conversation with the borrower. That is not going to hold water and you are being set up for a derailment of the loan and then a delayed closing to not having a closing at all.

Let's get back to customer services like it was 20 years ago. Make sure when you recieve the a letter regarding your buyer being Pre-approved make sure it based on verified information.

We have to slow down, take time, and look in the best interest of the clients before having them shop for a home.

Time is precious and we need to use it wisely not waste it.

So be aware that the Buyer's Pre-approval may be a Pre-qualification instead.

 

Comments (0)