CHAPTER 4 Honest Pre-Approvals
A lesson we previously discussed is worth repeating here: it is a necessity in real estate transactions that pre-approvals are both honest and appropriate. In the Key Factors in the Referral of Homebuyers to Mortgage Originators study discussed in the previous chapter, real estate agents ranked factors that determined which mortgage providers they would recommend to a client. The top-ranked factor was “reliable pre-approval letters.” However, this also ranked first on their list of significant problems within the mortgage industry. That may seem confusing but here’s what it means: agents most want lenders to give reliable pre-approval letters, and most of the time they don’t get them. Good lenders and loan officers start with a reliable pre-approval from their lending institution. This is the number one element that separates the good lenders from the bad. This is because the most important part of what a good lender does is give you an honest and accurate assessment that lets you know whether or not your buyers can really afford to buy the homes they’re gunning for. This is what differentiates my lending practices from the hundreds of other loan officers in my area. I don’t make up stories or over-promise. My intention is to give you a straight answer to the most important question in a real estate transaction, namely “Are the buyer, seller, agent, and lender, all going to get what they want from this loan?” The last thing I want is to fluff you 31
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