Lender Letters are NOT Created Equal!

By
Real Estate Agent with Cedar Rapids/Iowa City, IA KW Legacy Group S44645

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?

 

Thumbs down lady

 

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!

 

Keep smiling!

 

Karen

 

 

Posted by

 

Karen Feltman, REALTOR®, ABR, AHS, CHMS,                                                                      CNE,CRS, e-Pro, green, GRI, SRES, TRC

Keller Williams Legacy Group

4850 Armar Drive SE Ste B

Cedar Rapids, Iowa 52403

Email: karenfeltman@gmail.com

Mobile  319-521-0701

www.KarenFeltman.com

Licensed in the State of Iowa

© 2010-2021 by Karen Feltman, Cedar Rapids/Iowa City Relocation Specialist 

Comments (2)

Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Irvine Realtor®

One letter was a pre-qualification letter, and the other was a pre-approval letter.  Pre-qualification letters should never be used with Offers ... like you said, Karen, they're not worth the paper they're printed on.

Apr 29, 2019 02:18 PM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Karen,  I know of one lender lets his realtor friend fill in what the people qualification letter will say, I see his name and never use him.

Apr 29, 2019 02:28 PM