Some time ago, I received a link to a Forbes article that pretty much debunks what most people think about obtaining mortgage preapproval: “The Mortgage Pre-Approval Con” The article explains how mortgage preapproval works, what information is requested and evaluated by a mortgage officer, and so on. It’s a good article and pretty much says it as it is.
However, one critical fact missing is that most experienced Broker/Agents (that’d be me!) also work with mortgage professionals we trust. That’s because we have experience with them; we know that when they issue a preapproval, they have the level of knowledge and experience to perform. They also meet deadlines — one of the most difficult challenges facing purchases at the moment.
When working with Sellers, I may ask the Buyer presenting an offer to also be preapproved through a lender I trust. Of course that buyer can work with whomever they want … I just want to assure my client, the seller, that by accepting an offer there’s a good chance the sale will actually be completed.
Working with loan officers that have been vetted through experience, minimizes the “con” in mortgage pre-approval!
For a list of loan officers I trust and work with, visit my Lender Resource page.
As a mortgage professional, I’m curious if you have any pointers on gaining the trust of a real estate agent that I haven’t worked with yet? I see it as a bit of a catch 22 in that agents want to work with a mortgage professional that has proven themselves and that they trust but how do you gain the trust if you never get a chance. Any advice would be much appreciated, Thanks!
Hi Dana — Thanks for stopping by and commenting on this post.
How to gain agent trust? It’s tough and I’m definitely not the first one to tell you this, as I can see. I’ve worked with so many mortgage folks over my tenure as a broker/agent. The ones that I trust are those that have done outstanding jobs with more than one client, including those clients where a transaction doesn’t close.
Sometimes that relationship is formed by a mortgage person displaying an outstanding knowledge of programs, and having them to offer to a “tough to approve” client. Sometimes its been because that mortgage person has been available to answer questions. Rarely is it because they send me email explaining their services.
Introduction to mortgage folks is generally coming through clients who have been preapproved by that lender. Once I see a mortgage preapproval letter, I immediately call their rep and talk through what I anticipate the process to be. It doesn’t generally take too long for me to decide that the person at the other end of the line is spouting “canned” responses to a loan program, or whether they truly have experience and knowledge of how to get the transaction closed. And the trust is further cemented by having them meet deadlines and communicating with me. I want to know how long their underwriting process is, whether they’ve worked with a particular set of escrow officers, how long it takes them to produce loan docs, how long their review process is after docs are signed and so on. I want to see a prelimimary HUD and take a look at loan fees. If they truly perform those tasks in the timeframes and for the $$ they’ve promised, they go up a notch in my book.
It’s a combination of history, performance, time, and experience.
Does that help?
It’s also great from the loan side to work with great agents I have a relationship with. Makes everything go so much more smoothly!
You’re absolutely right, Mark! It helps to have a great team together all the way around!
when purchasing a property the value add the realtors can bring to the table is a one stop shop experience. I find it most helpful when the real estate agents can link me to mortgage professions and lawyers. This kind of services makes hiring an agent well worth it. Gab glad your offering the services regular people can appreciate.
Thanks for this great update. It is always good to work with someone you already had worked with. Not because they are good but because you can trust them that they are good and will do everything to finish the task.