How many times have you heard this? It is one of my personal pet peeves and it's getting worse and worse. I remember the days when all I asked was, "How's your Credit?" and with the right answer off we would go! Even I felt comfortable showing homes without an Approval Letter. No biggie. Obviously, today is totally different. Yes, I would love to show them houses if they are able to BUY!
How many times has your "potential client" said, "I am not going to have any trouble getting a home," in response to your questions? I then go on to explain just how turbulent the times are and how our Qualifying Requirements have tightened and changed and they come back with the proverbial answer like, "yeah, but I'm good friends with my banker", or "my family will loan me the money" or "I have perfect credit," and you just want to scream...THEN GET PRE-QUALIFIED.
Nothing is in stone these days. I recently contracted a large and lovely home for a couple that did have perfect credit. They were making $250,000.00 per year AND they were Pre-Qualified by Bank of America. I submitted their letter to the Foreclosure company and we had a deal! Awesome. The home was $349.000.00 and it was their dream home.
After about a week of dealing with the Underwriters and making calls and being a bit pushy we were running out of our "Final Approval" period and I didn't want them to lose their large Earnest Money check...so, I pushed.
It turned out that they were being paid by their own Company. So? The company made the money and seemed to be able to afford the payout. As it turned out, because the company had shown a loss on their Tax Return the previous year they were DENIED. Even with the Approval letter. You just never know...my heart broke for the moment.
FOR CLIENTS AND CUSTOMERS: We ask you to please understand when we do not want to jump and run to show you a house without an Approval Letter. It isn't that we are lazy or selfish or are attempting to make your lives difficult. It is however a huge undertaking to not have the Loan Go Through! We as Realtors are bound by an agreement of Ethics. One of the main requirements is to always tell the truth! The truth is, it's tougher than it use to be to get a loan. You may have perfect credit and lots of money in the bank.
But, this in and of itself is no guarantee!
Not to mention that if we do go view homes, that is no longer an easy thing to do! With gas prices the way they are we are footing the bill for a very expensive venture! For you it is fun and possibly a part of your vacation.
To us it is a full day out after making arrangements, driving you to home after home and then....if you choose to make an offer on the home we begin with the paperwork. Once accepted if you then go for an Approval and it is denied, we have worked many, many hours for free and basically nothing...We have turned many lives upside down and inside out.
The Sellers have begun to make plans for the move that isn't going to happen. They have even begun a search with another Realtor that is in the same work mode as us! So, the other Realtor, thinking their house is selling begins the entire process over and again many, many lives are affected. It's the domino affect!
Please get your Approval Letter?
Other Agents: Any ideas how to get this point across? Lissa suggested that we tell them to lock in the interest rate. Good idea.
Check out my website at: www.debs-realestate.com.