Sigh. Back in 2004 I was so disgusted when the head of a certain real estate group predicted on CNBC that house prices would continue to go up....and now they are going down. I wondered....these forward looking statements are being relied upon by millions of first time homebuyers and exisitng home owners. How is it that stocks are regulated on forward looking statements but housing has no such guidance?
I have a prequalification letter in my archives congratulating a customer. I congratulated this nice lady on being pre-qualified to buy a home up to $120,000 on Staten Island. At that time the 30 year fNMA, SFR, 1 unit, Full doc loan was hovering from 8.5 % to 8.75%....and those rate I feel will come back after the extensive remaining foreclosures flood tha market in 2008(just my opinon there folks). Will we see residential prices on Long Island go back below $200,00...I am in my opinion convinced we will see this in many towns.
Now what does all that rambling have to do with my headline?
Remember that prequal letter? You do? Well that's good news!
But beofre I go on....some of you loan officers are thinking..."I only issue pre-approvals!" Well get over it because both prequlas and preapprovals are both subject to actual full submission to the bank, the appriasal, title search...so just because the info was submitted online doesn't mean its alway better than a prequal...and you know why..........its called honesty.
Yes, I would obtain paystubs, w-2s, pull credit and obtain other info...write up the prequal letter, and BAM, like that famous chef would announce the price of the home that you are prequalified for.
Then I would get that pathetic phone call. "Can you raise the price? Please raise the price..they won't be able to work with me..all my inventory is $40,000 higher than what your prequal letter says!"
Now why do you who are reading this blog think I lost some customers and became hated by some real estate agents?
Do you think this scenario still exist?
(Keep in mind I don't do residential anymore and am doing Commercial) but with all the news of increasing foreclosures the remnants of residential closings still course through my veins!
So what do you think happened after that phone call? Do you think raising the price after having already finalized your anlaysis is ethical??? (OMG are we discussing ethics here????)
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