What to say to a buyer who's on the fence.

We are all used to the buyer/borrower who can't make up their mind about buying, or which lender to go with. They come with the territory. But what we are now seeing a lot of, is borrowers who were pre-qualified losing the program, or the ability to get financed because a program guideline changed over night. I'm not talking about marginal credit buyers, but good solid borrowers.

Over the last few weeks I've seen the following

A) A NOO rate increase by a whole point on a borrower with a 760 credit score and 20% down/equity who was looking at doing 2 loans. They decided to wait on one of them and now it will cost more should they even move forward.

B) An excellent borrower have to switch programs from a 95% CLTV to a 90% CLTV in order to keep a good rate.

C) A NOO lose the ability to pull cash out of a Triplex with No Doc, even though we were at 30% CLTV and an 800 credit score.

My suggestion? Get your borrowers/buyers credit approved with a reputable lender and lock the rate.

For details on a real pre-approval, see my post on Preapproval: Is the Borrower Bonafide.

Larry Morris is a loan Officer with Equipoint Financial Network in Newberg, Oregon. He specializes in relocations and Sherwood, Oregon neighborhoods and Yamhill COunty. He is a Board Member of the Sherwood Chamber of COmmerce.He can be reached at larry.morris@equipoint.com . His website is www.PDX-Mortgage.com . This material is copy protected 2007 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.

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