Have you ever fallen in love only to be disappointed? This week a family was looking to purchase a home. They were pre-approved by a mobile mortgage specialist at a major bank for up to $235,000. The real estate agent and family continually stayed in touch with the mobile mortgage specialist to make sure everything was okay as they had made 7 offers on homes. They finally had an offer accepted on the 8th home they offered. It was accepted by the seller and they had 48 hours to arrange their financing, but they were pre-approved – so what could go wrong?
In actual fact they weren’t pre-approved, based on credit history and obtaining proper employment information up front. They could have been steered in a path to strengthen their position or look for a smaller home. Imagine the realtor’s disappointment when they found they couldn’t get an approval. They had just spent hours upon hours with this family, not only wasting their time and the family’s time but also the time of other realtors and sellers of homes.
My advice to realtors is this:
1 Be confident in asking the purchasers if the bank, mortgage professional, or mortgage broker actually reviewed their credit score and credit history with them.
2 Did they also ask for their employment letters, pay stubs?
3 Did they verify the down payment? (some down payments don’t qualify)
If they didn’t ask for this information, your purchasers may fall in love only to have their heart broken. Don’t let it happen, make sure they are really pre-approved.