Recently I received an internet lead through my company. The potential buyer and I exchanged a few e-mails and then had a very nice conversation about her wants and needs in house. She is a single Mom with a grade school age child.
She wants a home near her son's school and day care
She does not want to overextend herself
She is aware of a special down payment assistance program in a particular city city for which she has already applied and been approved .
So then I asked her if she was pre-approved and she said yes and offered to e-mail me the pre-approval letter. I said "That would be great!"
Here is a part of that letter:
Congratulations! You have been pre-approved (in bold) for purchase financing, subject to the following conditions:
Satisfactory documentation of information provided for income and assets. (in bold) HUH??
Now I know that pre-approvals are not what they once were. I get that.
I know that the FINAL approval is based on
- a satisfactory appraisal
- no major changes to income, employment , credit, etc...
- satisfactory title work
just to name a few. But setting aside the actual house, can't the buyer themselves be pre-approved?
So I asked this buyer the following questions:
Did you provide the loan officer with copies of your w2's? "No, he didn't ask me for them. I thought that was kind of weird."
Did you discuss your debts with him? "No, but I know he ran a credit report." (From the sound of things I don't think he discussed her credit report with her once he received it)
Do you know what your payment will be if you buy a home in this price range? "No, he never told me."
So I suggested she talk to another loan officer. She did and here's what he was able tell me.
She declared bankruptcy in 2004
She has a few issues with her credit but he feels they can be explained.(He did not tell me her score)
This loan will not be a "slam dunk" , it will take some work, but he feels it can be done.
So here's what I know:
This buyer is ready, almost able and willing to buy a home and I hope to be the one to help her achieve that goal.
In spite of the huge mess we are in, there are still loan officers who will write "pre-approvals" after one very brief conversation with a potential buyer. This is impossible in and of itself, much less on a weekend. This is not a rant on loan officers in general as I know a slew of great ones and I know that it is the great ones that help us get to closing. Khash Saghafi wrote a great post about this titled "Pre-Approval : Fact or Fiction Part I")
She would like to work with the second loan officer. I am preparing for the call I will get from the first one ranting and raving about my taking away his client and how I have no right to do that to which I will reply:
- I have every right to look out for my client's best interests.
- It is in her best interest to know that she will be writing some letters of explanation regarding her credit history
- It is in her best interest to know what her monthly payment will be.
- It is in her best interest to know that if she wants to buy a house it is not a good idea to go out and make other major purchases at this time.
- It is in her best interest that a loan officer take the necessary time to explain the loan process to her in detail.
- I am permitted to suggest she speak with more than one loan officer, just as she should speak with more than one inspector or just as others might tell her to speak with more than one realtor.
In the end it is her decision . But if I have any qualms about whom they have chosen, I will state my opinion and recommend someone whom I know, have worked with often, and whom I trust. As realtors, I believe we want the same thing for ourselves.
If you would like to buy or sell a home in Broadview Heights Ohio or in the surrounding communities, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate. Information is obtained from Neohrex and is deemed reliable but not guaranteed.
If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate. Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.
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