The whole problem was the loan officer. He did not let the agent know ahead of time about the special survey requirement. The loan officer’s negligence caused the whole stack of cards to come tumbling down. Everybody had to bear the burden of the lender’s incompetence. As a result, the agent was extremely unhappy with the lender. He does not work with that lender any more and would dissuade a client from using that bank.
Lender Horror Story #2
We noted the difference between pre-qualified and pre-approved loan status earlier in this book. To refresh, a prequalification letter is when the lender simply checks your credit and asks basic questions. There is no verification. A prequalification statement is just the tip of the iceberg, a brief investigation into the borrower to ensure that they aren’t going to be immediately rejected for a loan due to some sort of massive issue with their credit or finances. A preapproval is more certain. A borrower with a preapproval letter is a borrower whom — assuming the house appraisal and inspection pass muster — the lending institution will approve their loan. With a preapproval, the lender verifies the prospective buyer’s income, down payment, and down payment source. The lender also verifies tax returns have been filed if the prospective buyer is a self-employed borrower. A pre-approved buyer is truly ready to purchase. In this case, an agent named Tammy was selling a house, representing the seller. After conducting showings and negotiations, the buyer made an acceptable offer on the house, which Tammy’s seller-client accepted.
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