But the OTHER Guy Said I Was APPROVED... PART 1

Okay. I am NOT a mortgage person. Not a loan officer. Not a lender. None of the above. I am merely a real estate agent, with all the associated issues attached... :) They say real estate agents are right up there with LAWYERS and USED CAR SALES PEOPLE. Ouch. But that's another post: Here is what I have been dealing with this WHOLE YEAR:

"BUT THE OTHER GUY (lender/loan officer/loan hack/loan officer) SAID I WAS APPROVED..."

I work with a LOT of people/Buyers that are first/second/third-time BUYERS. They typically speak with a mortgage "professional" prior to contacting me. Everyone is tech-savvy and does their "homeswork." Sometimes, so; somtimes, not. BUT, for the purposes of this post, let's say they've already talked to a mortgage/loan officer (LO). They tell me--"But the other guy/gal/person said I was APPROVED."

All right. Here's my take on it. I'm NOT a mortgaqe professional. ALL I DO is REAL ESTATE--not loans. So, the loan "approval" is only as good as the paper it's written on. Seriously. If your LO you've been talking to has done a crappy job of pre-qualifying or pre-apporiving you, then you have a crappy pre-approval or pre-qualification. I have even seen people get "pre-approved" based on what they SAY to the LO, WITHOUT their credit being pulled. WHAT!? That's really just a pre-qualification., or "pre-qual." That is NOT a pre-approval.

A "PRE-APPROVAL" is when your professional LO gets your bank statements, etc. and pulls your credit report from ALL THREE credit bureaus and takes what you say verbally and checks EVERYTHING and maybe even does DESKTOP UNDERWRITING for an actual APPROVAL; then, THAT'S an "APPROVAL."

Anything ele is just, well, NOT an approval. It's a hope. It's a NOT-approval. I have talked to a gentleman THIS WEEK that said, "But the OTHER GUY (LO) said we were pre-approved" and could buy a house. To this guy I say, "Well, your pre-approval is only as GOOD AS your LO." If you have GARBAGE IN, you have GARBAGE OUT. Seriously. If your LO says one thing, you tend to believe him/her. But WHAT IF THEY'RE WRONG?! It could cost you, severly.

Hmm. Maybe people who contact real estate agents should get Pre-Approved and not just Pre-Qualified. Something to think about... Also, do you get a SECOND OPINION or encourage customers to do so?

What do YOU think?