First off…I am NOT insisting that they USE my lender. I only insist that my lender QUALIFIES them. The final decision is up to the buyer. They don’t HAVE to even TALK to my guy. But if they don’t… we’re all done talking about ANYTHING regarding the sale of that property.
This is what everyone here needs to remember…Mortgage Brokers are DIEING right now. Case in point…I’m having lunch at a local Bar & Grill a few months ago. I sit down at the bar next to a guy and we start talking. My cell phones rings concerning a property I am closing on. He can’t help but overhear my conversation. He tells me he’s an independant mortgage broker. He also tells me that in 2006 he made $425,000. He asked me to guess what he made in ALL of 2007??? I said I had no idea.
$17,000 !!! and this was in December 2007 :shocked
When these guy’s get a WARM BODY applying for a mortgage they will try anything to get them financed, they could CARE LESS how much it might screw YOU up. This is NOT GOOD for US because it can WASTE a LOT of time. I’ve learned this the hard way. Once you sign a P&S your locked in (even though it’s a limited time, it’s STILL a WASTE of that time if your buyer is a STROKER). I’ve had mortgage brokers who were trying to get clients to SELL CARS, LAND, BOATS, ANYTHING they could inorder to raise the CASH they needed to qualify. THIS TAKES UP TIME. TIME you could be using to actually SELL a property instead of cars, boats or other BS. In this economy banks are ROUNTINELY asking borrowers to come up with MORE and MORE CASH. They’ll get a pre-approved for the loan (which is as valuable as the paper it’s written on) But the problems pop up in underwriting.
By using MY mortgage broker I’M in CONTROL. He tells me straight out. This guy CAN qualify, or he can qualify IF he can raise $20K!!! Now I’m not waiting for that to happen, if it does GREAT!!! If not… I’m free to show and sign with another buyer. It also makes it HIS priority to raise that money!!! He knows the house is STILL for sale and being shown. If he wants to BLOW OUT his Harley inorder to buy my house that’s great!!! Either way I’m not waiting for him because he has this house locked into a P&S that gives him 30 days to screw around while I cross my fingers on the sale of his Motorcycle. The thing you have to remember is…you won’t find this out until UNDERWRITING, (that’s why I USE MY BROKER.) That’s when the lender takes out the microscope for a little exam.
Pre-approvals are BULLSH*T in this market. UNDERWRITING is were loans get KICKED OUT. That happens AFTER, a signed P&S is filed, ( in fact, a loan can not even be SUBMITTED to underwriting without a P&S) A good mortgage broker working for YOU is going to alert you to ANY possible problems. A BUYERS broker CAN NOT discuss these issues with ME due to privacy laws!!! MY broker simply gives me the YES or NO!!
NO…I have NEVER had ANYONE threaten to sue, complain, or anything else regarding this practice. I’ve had people who refused to go see my Mortgage guy…BYE, BYE…I look at them as a waste of my time. If all I’m looking for is CONFIRMATION that your pre-approval will get through underwriting, what’s the problem?? If that buyer is SOLID I don’t care WHO they go through. I have a GREAT mortgage broker. In EVERY SINGLE CASE he was able to actually save these people money over THEIR brokers offer. He’s a pro, he WELCOMES them to have a third party (their attorney) look at the mortgage and confirm the savings. When you not Bullsh*tting people, it’s really not hard to sell them a better product at a lower cost. In the end it’s 100% THEIR decision. BUT I KNOW they CAN qualify BEFORE I sign them.
GET a GREAT Mortgage broker on your team. In this market he is my GO TO GUY these days!!!