Pre-Approval Shenanigans

Okay…so you’ve decided that you want to purchase a house. Congrats! You’ve contacted your favorite REALTOR…ME!! The next step is pre-approval.

You have so many options in a lender. You could go to your bank or credit union, and talk to a loan officer. You can go to mortgage company, and there are even mortgage brokers out there.

Yes, I do have my favorites, and I have those favorites because I have done the leg work. I feel confident in saying that I’ve been able to weed out the bad lenders or institutions from the good ones. When I met my preferred lender, I felt like I had been in a war…a war with a loan officer who was so uneducated about the process, non-communicative, and well, awful. My life, my business, and my clientele have all benefited from my lender. I’m thankful for him nearly everyday.

It’s important to know that you have options in the lender that you choose. A lot of options, and it’s always your choice as a buyer. Ask around, do research, ask questions…and trust the professionals in the business.

If you are interacting with a lender and you’re working towards a pre-approval, know that it takes much more than just filling out an online application, and giving consent to pull credit for a lender to determine your loan eligibility. If a lender gives you a letter of approval without seeing your tax returns, recent W-2s or 1099s…run for the hills. I can think of a few lenders who are culprits of misrepresenting your approval status (i.e. many big box banks). If a lender is misrepresenting your approval status, it’ll cause A LOT of problems. The seller(s) on your “the one” home will be relying on this pre-approval letter, and if it turns out you cannot actually obtain the financing, it’s going to cost them a lot of time, which equals money. Not to mention it’ll cost you, the buyer, a ton of time, energy, money, and by the time your lender figures out they can’t make it happen, you’re gonna be so disappointed, you may not think the process is worth it! I hate it when a real estate professional turns out to not be a professional at all!!

A reliable loan officer will want the last few years of taxes, your most current W-2s or 1099s, your consent to pull credit, and copies of your bank statements. An even better loan officer will want to meet with you in person to discuss your options, loan programs that you could benefit from, and more.

Call your favorite REALTOR at 317-480-7966 if you have any questions or concerns! I would love to help you!!

By Jill Curtis,