The mighty LSR...Really?

Hi Marie

Not all mortgage brokers are the same.  And, perhaps it is your client.  Maybe the broker didn't do a credit check. I don't trust the LSR. They can write them up after a discussion on income.  I had a deal fall through just a couple of days before closing because the buyer never disclosed to anyone that he had defaulted on a previous home loan that went into foreclosure 10 years ago. It didn't show up when the mortgage broker checked out the client but the lender was able to find it.  When I take on a new client, I talk to their  mortgage broker and start getting involved with him or her at the get go.  I feel this person is just too important. I would rather have my clients use a broker I know but sometimes they come to me already using a family friend and frequently, this is someone out of state.  When representing a seller, I also want to have contact with the mortgage broker.  I know you want to demonstrate that you trust your buyers can afford what they say they can but you never know.  There is a person in my office that insists on all of her clients being prequalified through her broker friend but she doesn't require that they use him.  She just has one broker she really trust can get the facts on the buyer's qualifications.  I haven't done that yet. 

This is one of the main reasons I tell my buyers that it is always a good idea to talk to one of my preferred lenders even if they have their own lender, just as a backup in case something goes wrong.

Welcome to Activerain,