Want an Advantage When It's Time to Buy? Be Ready With Your Mortgage Pre-Approval

Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI


Want an Advantage When It's Time to Buy?

Be Ready With Your Mortgage Pre-Approval



A scenario I'm all too familiar with played out once again over this last weekend ...


A phone call came in from a prospective home buyer.  They wanted to get pre-approved for a mortgage.  Their realtor had advised them that they needed a Pre-Approval Letter in order to submit an offer on a home they had viewed and fallen in love with.


Time was of the essence, as they hoped to submit their offer to the home's Seller immediately.  Interest in the home was high and they were sure there would be multiple offers made.


This was my first contact and conversation with this home buyer.  But from very first contact, we were in "crisis mode". 


We shot from zero to 60 mph instantly.  And right out of the gate, these home buyers were feeling stressed regarding their mortgage financing.  


It didn't need to be that way ...


Now I completely understand that potential buyers might start a home search and view properties casually when they first being the home buying process.  It's their way of testing the real estate waters, so to speak.  


And I also understand that while casually viewing homes, a portion of those prospective buyers come upon the "perfect home" that triggers their need for more serious financing answers and actions.  


But in the majority of cases, that is not and should not be the case ... 


As a result, the process of seeking and securing mortgage financing should be more measured and methodical.  It should be prepared for, planned for, and executed in stages.  When conducted in this manner, the mortgage process is far less stressful and borrowers avoid much of the stress and panic that my new clients felt so keenly over the weekend.


This more measured and methodical approach is a distinct advantage to lenders too as it allows them ample time and opportunity to ask their prospective borrowers more questions and gain more detailed information ... an advantage that should not or cannot be overlooked or minimized.  When given time, a lender can perform a more thorough examination of financial information, credit reports, subject property (and more).  And that, in turn, means more dependable information provided by the loan officer to their clients and agents ... and fewer issues arising moving forward.


It's a fallacy that, in the current mortgage process, Pre-Approvals and Pre-Qualifications are a simple thing to provide.  If performed properly and reliably, they are not.  To be considered correct and reliable, much info must be gathered and considered.  Information, preparation, and execution all matter greatly during this time ... as does your choice of Loan Officer.


A recent article posted by Sally and David Hanson, Broker Associates with EXP Realty, serving southeastern Wisconsin ... and veteran members of ActiveRain ... highlighted the importance of thinking and acting proactively during the home buying/financing process.   They wrote this plea to professionals, "Agents ... BOTH ... listing and selling ... be Pro-Active ... keep an ever watchful eye on all the moving parts of the transaction.  The transaction you "save" may be your own!"   


I would add that loan officers, in tandem with their borrowing clients, should think and act in much the same manner ...


Potential home buyers (and those refinancing), should allow ample time to loan officers to gain all the detailed information needed for a Pre-Approval Letter.  The time that allows a loan officer ample opportunity to conduct an in-depth analyzation and opportunity to seek further info from their client, if needed.  The results are far better for all involved.


As an example ...


A first-time home buyer was referred to me by his father, an acquaintance of mine.  This young buyer reached out to me initially via email.  He then followed that exchange of information up with a phone call.


This young buyer related to me that he'd previously communicated online with 2 other lenders and had even sought Pre-Approvals from them.  Neither lender had provided him the information he gained during our phone conversation.   


That important information included:


  • Detailed information about financing a Condo 
  • Substantial info regarding the Transfer Tax Fee he would incur because of his Condo city/location preference
  • A breakdown of his prospective Closing Costs 
  • How his Interest Rate would be affected by his Credit Scores, Down Payment percentage, and Debt-to-Income Ratio
  • The cost of his (required) Private Mortgage Insurance 
  • That a Seller could be asked to contribute/offset some or all of his Closing Costs
  • That his search for a condo (and subsequent information regarding the property) could be better served by a Realtor
  • A referral to a local experienced Realtor
  • More ...


Most importantly during this conversation:  I was able to obtain my client's financial information and was then able to pull his Credit Report.  This resulted in my being able to issue a Pre-Approval Letter quickly and easily on the day he wished to make an offer.  We sailed right through because his proactive actions paved the way for a fluid Pre-Approval and successful, less stressful mortgage process.
Bottom line:  Don't go home shopping before you get Pre-Approved for your financing.  The stakes are too high to NOT take proactive action when you're hoping to buy and finance a home.  

The present real estate housing market does not allow for hesitation or poor preparation.  Time, money, and a home you love can be lost if you wait too long to take action.  


Commit yourself and the time needed to a proper mortgage search ... starting with a thorough search for an experienced knowledgeable loan officer.  Start that search early.  Talk to that loan officer months ahead of when you hope to buy ... or even start a preliminary search for a home.  The more time you allow, the better.


If buying or refinancing a home or investment property in the Chicagoland - IL - WI area, I'd love to hear from you.  


* Are you hoping to buy or refinance a home or investment property in New Lenox, Will County, or elsewhere in the Chicagoland, IL/Wisconsin area? 

Contact Me! 
I'll put my 40+ years of mortgage experience and expertise to work answering your questions and fulfilling your financing needs.
I'm easily found at:

Gene Mundt
Mortgage Originator - NMLS #217987 - IL Lic. #031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281

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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656


Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 


Your Referrals & Testimonials are Always Greatly Appreciated! 


Email Me .. to be added to my Mortgage & Real Estate Newsletter


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Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

I don't know how to draw APPLAUSE ...CLAP CLAP !!!! The next meet-up the first round or three is on US  Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi  !!!

Apr 09, 2019 12:17 PM #1
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Hi Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi good advice here.... be prepared properly with a pre-aproval from a loan officer who knows the business... and that's Gene Mundt.... call Gene BEFORE you begin your home search....

Apr 09, 2019 12:18 PM #2
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Great post, Gene. You have no idea how much time I spend pounding this very message to my buyers.

Apr 09, 2019 03:10 PM #3
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

I totally agree. Buyers should really get pre-approved before looking at homes. You pointed out good reasons why.

Apr 10, 2019 03:11 AM #4
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

You know Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi I reviewed a pre-approval letter the other day and it was so full of contingencies that it defeated the concept of its existence

Apr 10, 2019 06:48 AM #5
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene I am surprised that in this day and age a Realtor would waste his/her time with anyone that was not a least Pre-Qualified ahead of time.

Borrowers who have given their lender paystubs, W2's, and bank statements and gotten Pre-Approved have a big advantage over a borrower submitting an offer who has not provided that information and is only Pre-Qualified.

Apr 10, 2019 08:49 AM #6
Wayne L. Brown
Franklin Advantage Inc. - Alpine, CA


Could Not have said it better!

Unfortunately, not everyone heeds this advice.

Thanks again for and excellent and informative post.

Apr 10, 2019 10:19 AM #7
Marney Kirk
Cummings & Co. Realtors - Towson, MD
Towson, Maryland Real Estate

Gene, it is SO important for a buyer to get preapproved VERY early on in the process. Crisis mode is not the best place to be!

Apr 10, 2019 04:42 PM #8
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

In my area, Gene, a pre-approval from a reputable loan officer/mortgage broker is more than an advantage; it's a necessity.

Apr 10, 2019 08:12 PM #9
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

You are very much an expert on this stuff in ways that I could never be. You’re really great!

Apr 10, 2019 11:20 PM #10
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Reputability can be a special skill for some of those people and I think it’s a tremendous art. Lottie Kendall

Apr 10, 2019 11:22 PM #11
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH

Valuable advice!

Potential home buyers should allow ample time to loan officers to gain all the detailed information needed for a Pre-Approval Letter.  The time that allows a loan officer ample opportunity to conduct an in-depth analyzation and opportunity to seek further info from their client, if needed.

Apr 11, 2019 03:58 AM #12
Doris Freeman
Broker/Agent, Realtor, Madison-Gibson-Crockett

I will show a prospective buyer 1 home only before we get pre-approval letter, this is usually a call in on a specific home.  My lender of choice is available weekends, eveings, etc so we can usually get them phone verified until a weekday.

Apr 11, 2019 06:36 AM #13
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

Dale Taylor available to serve your pre-approved Buyers 🏡😉.

In 32 years it is still an awkward conversation trying to have that initial honest conversation with a consumer about doing their financing homework before requesting to tour a home.

There exist an emotional tug of war, do I take risk and meet them at the home they requested to tour, or do I risk losing them by insisting they get pre-qualified by a trusted Loan Professional like you?

I wish my Colleagues would set a standard, no touring before prequalifying. A couple of days ago a Realtor hosting an open house in Tinley Park was assaulted.

I side with taking the risk of losing them when they elect to not cooperate with my recommendation.

When they rebel from the start they are giving enough information they will stress me every time in their presence.

My goal is to serve cooperative motivated qualified consumers.

The alternative is not fun at all, plus I never want to be serving anyone who could take me to the place of visiting heaven via jail🤣😅😂!


Apr 11, 2019 07:28 AM #14
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

Footnote: In that initial conversation I tell them the primary advantages of doing their financing homework. 1 they shop with confidence what they like they can buy. 2 they know well in advance if there is a mistake on their credit report hindering them from buying now what they like. 3 they position me to make them irresistible to a seller when presenting their offer, especially in a competitive marketplace. This means a better negotiation advantage they create for themselves through cooperating with me. If we can get all our Colleagues to consistently do this, the consumers would get in the habit of unconditionally cooperating with what we advise from the start.🏚😱🏚

Apr 11, 2019 07:42 AM #15
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Gene, a well stated post on the importance of buyers getting a Pre-Approval letter.

As real estate agents we should help educate the consumer on the reasons you give. Takes the stress and strain and rush out of the process.

I still talk with many agents who do not see the need and take buyers all over creation looking at properties and will not require them to get a Pre-Approval.

It can waste time for the agent and the buyer.

Thanks for sharing.

Apr 11, 2019 08:42 AM #16
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

My standard approach to buyers is as follows: Mr. and Ms. buyer if you find the perfect homeand then find out you can not be approved for that much house, you will never be satisfied with anything else you see.

Apr 11, 2019 09:10 AM #17
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

So - were you able to get this couple approved in time to make an offer on the house they wanted? Or did someone who got approved before they began the search beat them to it?

Apr 11, 2019 04:57 PM #18
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Sometimes you have to just go within your means and then build your finances up to fulfill your dreams a little later. Do you know what I mean?

Apr 11, 2019 11:10 PM #19
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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