Over the weekend, we received two offers on my new listing. Unfortunately, one of them had a lender letter that was not worth the paper that I just printed it on. It literally said the following "Subject to the information verbally provided by the client at the initial application phone call." What?!?!? So in other words, the buyer said this is how much he makes per week or month and this is how much is planning to use as a down payment and the lender verified nothing and gave a letter.
Not much confidence in that one.
In sharp contrast, the other buyer's letter stated that all credit, income and assets had been verified and the loan was contingent on a valid purchase contract, acceptable appraisal, and title opinion. Hmmmm. Do you need to wonder which one the sellers decided to counter?
The agent with the flimsy lender letter whined that her buyers keep losing in multiple offer situations. When I asked how long they had been looking, she said over two months. What? In two months the buyer was soooooo busy, that he could not meet with the lender to get all of the verification and documentation completed to have a better pre-approval letter?
Buyers, the letter that the lender provides to you is important. It shows your creditworthiness and your ability to close on time. It is a reflection of your preparation to buying a home. Not all lender letters are created equal, just like all agents are not the same either. I hope that they will find time to get in to see the lender and provide all of their documentation before they try to offer on another property. And we wish them the best of luck in their search! The best buyer wins!