The other day I was working with my realtor & she asked me, "So are my clients pre-approved yet?" I told her no, they are pre-qualified & I'm waiting for their documents to get them pre-approved with my lender. And I started thinking to myself then, why am I working my butt off getting real pre-approvals? Why do I find myself over & over & over again explaining the difference between pre-approval & pre-qualification? Why? Why? Why?
I mean think about it. When I worked for Countrywide, no knock on Countrywide or the branch I worked for, but I didn't see not one person actually go over the underwriter & ask for a real preapproval. When I worked at the small broker shops, I NEVER saw anyone actually submit the deal to the lender before they had a contract. But everyone was told they were preapproved.
When it comes down to it, it is an unfair advantage if you are saying the deal is pre-approved when it really isn't. I mean let's face it, there are certain clients that are slam dunks. You the guy I'm talking about. The one with 800 credit scores, 50% down, on the job for 10 - 15 years & has no debt. But how about the rest of them? It takes considerably more time to get them pre-approved.
Well I'll continue to do it & continue to explain because you know what? I'll always have repeat business. I will ask something from every realtor who reads this post though. Please ask demand that your lender be honest & tell your clients the difference. In the long run it will help all of us to continue to have smooth on time closings!
For help or questions contact:
Senior Loan Consultant - NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA 19428 | Direct: 610-355-8039 | Cell: 610-739-6563