2 hours face to face gives answers to important questions

Is that Pre-approval letter you’re holding Valid?One of our loan officers sold their mother’s house a couple of weeks ago and a loan officer wrote a pre-approval letter for the buyers contingent only on an appraisal and acceptable title work. A week into the process, she got a call saying that the parents were being added as co-signers because the co-borrower’s income wasn’t acceptable to the underwriter; less than a year on the job in a commissioned position. This past week, as we were completing loan applications for a number of borrowers, they shared pre-approval letters that they had already received from other lenders. When we asked them if they had actually sat down with the lender and completed all of the disclosures, provided paystubs, bank statements, and tax returns, etc, the answer in ALL cases was no. Each of them had merely had a conversation with someone on the phone or over the Internet. Nothing had been verified. Out of respect for the professionals who put themselves on the line daily and weekly to sell real estate, represent sellers and buyers, it is necessary that we ask a couple of questions to validate a pre-approval. Has the underwriter reviewed the file and issued an approval and what are the stipulations from the underwriter for final approval? In my business model, a pre-approval means that the file has been PROVED and underwritten. There are no shortcuts to reliable information. Do your sellers a favor and insist on full credit underwriting pre-approvals. They only take 24-48 hours with a qualified, prepared buyer and an in-house Underwriter.
Face to Face for 2 hours can save a lot of money and heartache down the road:Family members of clients of ours called in this week to say that they had made application somewhere, usually at a big bank entity, and that they did not understand the documents they were e-mailed, or the type of loan they were being given. No one had taken the time to explain or to sit down with them because they were too busy. They just e-mailed them a package to sign. They had no idea about the fees they were being charged or how an escrow account worked, or whether or not the loan was right for them. In conversation, I discovered that one couple was about to execute short sale documents on their current home, so that they could use their savings for the new one. Oops. This would have tanked their credit for years to come and no purchase would have been possible. In another case, the client said that my Good Faith Estimate of PMI cost was much higher than the online quote they’d gotten from a California Lender. Oops, the lender must not have looked at the National PMI policies that flag MN as a declining market requiring higher MI. This would have led to a big surprise at closing. In yet another case, the borrower was paying fees to refinance when putting the same amount against her current mortgage would have resulted in a $2 difference monthly in payments from her current mortgage. She cancelled her refinance. A client, this week, asked me to text message him with the requirements for pre-approval. I told him I would be happy to set up a face to face meeting and that I would send him a complete checklist via e-mail to prepare for that meeting. Now I understand that texting is a preferred method of communication for a growing number of people, but you simply can’t deliver the scope of information you need to help someone make an informed and wise decision via 144 characters in a Twitter or a text. This is from the desk of my lender, Barb Crea

This story is repeated over and over in the real estate market. I can not tell you how many people I speak with in a year that when asked, "Have you met with a lender to find out how much you can purchase?" respond by saying they have been pre qualified. Once I start asking them details, they either do not know or get defensive. If you know someone who is trying to buy property, please tell them they need to sit down with someone who literally spends over an hour with them on details. When buying property it is important to know options as well as details of the loan. Many people today could have avoided the problems with their loan, had they had details before they closed. Once you close on a blind loan it is to late. The documents you sign repeat it over and over again, I understand and agree to the terms and condition of this loan. Be Safe, Work with a Real Person, Call a professional. If you would like to purchase property anywhere RE/Max is International and we can help you. Start by calling 651-450-2164, Madonna can arrange a face to face with a lender, a buyers consultation and if you plan to sell your property the services I provide exceed expectations.