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- Nic Netherton, "Colorado Lender"
- Contributions:7219
Which bank is it?>
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Yeah, what bank is it and what does the preapproval letter state.
- plohmier
- Contributions:86
Our agent didnt show us the letter but the bank is American National Bank.
- Greg Darlin, "Greg Darlin"
- Contributions:3238
I would be worried if I were you.
I have found that many of the approvals are a stretch from the truth because the right documentation isn't inputed properly do determine a valid AU approval.
Find out where the approval came from and then post.
- Wayne.T_ .....Colo.
- Contributions:1003
Should you be worried? NO but definitley be sure of the status of the buyer's application status and that all conditions are being met in a timely manner. Have your agent verify with processing.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
Google the bank and check it out. Just because they went online to get their mortgage does not necessarily mean that it is going to blow up. Also was an appraisal done yet? If so, then a commitment letter may be available to give you some more peace of mind.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Why didn't your agent show you the letter? I would tell her to fax or email a copy of it to you to see exactly what it says.
Greg, you do have a point, but when I supply a preapproval letter, my company name and reputation are at stake and I run AU/DO, etc prior to giving the letter, and the letter states what conditions need to be met and that more may come.
In addition Plo, American National Bank is pretty big. We have a few here in Colorado, that have a good reputation. I believe they are in several other states. Where are you at?
- Larry Jacobson, "Clearpoint"
- Contributions:1214
A pre-approval is just that, it doesn't matter who it is from in my opinion they are not worth the paper they are written on. How is the rest of the sales process going, has the inspection been set up, has the appraisal been ordered? You have every right to be informed on the loan status. I send a weekly updated form to both agents involved which indicates the day I received a full application, supporting documentation, and date appraisal was ordered and received, date file went to underwriting, date all conditions have been cleared, and the date closing documents were sent to title. Until that final point anything can happen, so keeping yourself informed is the best way to make sure things are progressing.
- plohmier
- Contributions:86
Tammy, we are in Wisconsin and I have never seen an ANB around here. Also, my agent said that she's really not supposed to show us the letter.
- Greg Darlin, "Greg Darlin"
- Contributions:3238
I am not saying that all online pre-approvals are bad. Let me clarify . . .
The ones I have seen were from the online sweatshops (I will not mention names as this will start a whole new war on them and others!). I would run the numbers and the people simply couldn't pass AU. I had all the info: pay-stubs, W2's, assets etc. But, they were approved hands down with the other company. So, being plomier, I would want to see more and read the verbiage on the pre-approval carefully.
Plomier, get a copy of the pre-approval and if it is more than 30 days old, get it updated.
- plohmier
- Contributions:86
Greg, I can't get a copy of the pre-approval because our agent told us she can't show it to us. Does that sound right?
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Wow CP, thanks: it doesn't matter who it is from in my opinion they are not worth the paper they are written on. I thought the definition of a Preapproval letter is:
With preapproval, your lender does a thorough evaluation of your ability to pay for a home, and can provide you with written confirmation of the mortgage amount.
Plo, it looks like there is one in Beaverton and Appleton. Not sure where you are at. Was the preapproval letter submitted with the original offer or did it come later? If the preapproval came later, I think you agent did you a disservice by accepting the contract with no letter. In addition, it would have given you more time and you could have asked more questions.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
That is a crock of BULL Plo. I NEVER have accepted a contract on my house without seeing the preapproval letter. PERIOD. The initial contract should be presented to you with the preapproval, earnest money and contract. I do not know a single realtor who would not present that to you with the offer.
- Greg Darlin, "Greg Darlin"
- Contributions:3238
Plo,
No, that does not sound right. I have had many sellers and their agents look at the pre-approval letter. Why wouldn't that be kosher?
The letter should state that the lender has reviewed:
1. Assets
2. Credit
3. Income
4. Verified employment
5. contigent upon final underwriting, clear title and appraisal, John and Jane are approved.
There may be other contingencies such as the buyer needs to sell current residence etc.
- Larry Jacobson, "Clearpoint"
- Contributions:1214
Tammy, I don't care if the pre-approval comes from the best lender in the world. It doesn't mean anything. Until a loan is actually submitted with full documentation to an underwriter does it actually mean something. That's why it's important for everyone to be kept in the loop on the whole process.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
There is nothing on a pre-approval letter or even a commitment letter for that matter that would violate any privacy laws. They are design specifically for public viewing.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
CP- so if someone came to you today, wanting a preapproval because they were going to put a contract on the house tomorrow, with a completed 1003, POI, bank statements, and W2, you would not provide them a preapproval until it came out of u/w? You wouldn't run it thorugh AU/DU to get the approve/eligible, and then include the conditions on your preapproval letter?
Plo, I agree with what Greg said.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
plo,
Has the appraisal been done... Is the survey being done? Before we all jump in front of a bus... ACTIONS SPEAK LOUDER THAN WORDS... Is there a title agent/attorney involved? have they contacted you for payoff information and asked for wiring instructions to wire the proceeds form the sale into your account?? If your agent is savvy, she/he will know who's on first as they say.. We can tell what is real and what is not... The pre-approval is a piece of paper... you want and need a closing.. paint the landscape and if there are crickets in it... I'll push you in front of the next oncoming 18-wheeler if necessary.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
MW, typically I agree with what you say, but I disagree with you right now. What does the title company requesting P/O info and wiring info have to do with his preapproval? Nothing. I worked as a R/E closer at a title company for 8 years. That is SOP (standard operating procedure) and can be requested right when they get the contract, or right before the closing. You can't have a cloisng without having the loan approved. Plo has no idea about anything because his agent has left one key bit of info out-the preapproval letter. He has no idea what it says or what the lender needs. As for the appraisal, that can be done 10 days or less before closing, he is 3 weeks out. I doubt it's been done.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Sorry to hear that ZV. Hopefully you got it all taken care of.
- Larry Jacobson, "Clearpoint"
- Contributions:1214
I certainly would Tammy that is my job; however that piece of paper means nothing monetarily. As a seller I want to know when they have their final underwriter approval because that means something. Until that point all the seller has to go by is if other things are getting done that will move the process along to the funding table.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
T,
Understood, but if all that can be done 10 days prior... why is everyone concerned at day 21... Call me back in 11 days and we'll panic together. I order the appraisal immediately after running my AUS. I have been doing this for 20 years and to me, appraisals are not done at the last minute. Also, title companies do not like to order title (expense to them) and surveys when they feel uncomfortable about a collapsing closing. His agent is not savvy then. I would have the agent held more accountable to gather my info, but again, to me, actions speak louder than words and according to what I read, the words are missing anyway, so I was attempting to calm the Seller, by finding out what actions are being taken towards a closing. The seller here has been scared to death and we really don't know all the facts. I "write up" pre-approval" letters, but my wholesalers do not give me an commitments on letterhead. I am not taking a stance, but it will be very disappointing to the seller and a reflection of the Listing Agent if this thing does not make it. I am giving the benefit of the doubt that this will make it. We'll see in 11 days. Keep rockin'.
- plohmier
- Contributions:86
OK, now I'm really starting to worry and I may have to call my agent for an explanation. She had also mentioned the buyers were now trying to get a pre-approval from a local bank (...and that's when my jaw almost hit the floor). The offer did not come with the pre-approval but they had 3 days from the time the offer was accepted to provide it.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Now, Martin, I'm not saying I wait until the last minute, I order mine ASAP, but I'm talking generally. As for title, their employees are getting paid whether the deal collapses or not. That's part of the deal. Infact, we had several lenders who had title work pulled even before there was a contract, then title would update the commitment when the contract came in. Sometimes the house sells, sometimes it doesn't. Regardless that is what the titel company is there for. I personally do not have any lenders that provide a commitment letter either. I provide them when I have run AU/DU, or they don't get one from me.
I think we are losing site of the issue. Plo has not idea where the loan stands. Period. His agent has a responsibility and duty to keep him informed, whether that be by calling the selling agent and having them contact the lender or nagging the selling agent until she gets the answers she needs. She should have presented that approval letter to him at the time of the original contract, if they felt uncomfortable in any way, they could have countered with more EM etc. I've even seen some people counter a deal, by having them get a preapproval through their own, bank/lender and then if that is a go through them, they can go ahead with the lender the buyer originally used. I see that more and more now. Kind of like double checking.
- Larry Jacobson, "Clearpoint"
- Contributions:1214
Plo, forget about the pre-approval letter and contact your agent. Have him/her request a loan status. You have 3 weeks to go so there should be some information for you. Has the loan been submitted to Underwritting, has it been approved, are there conditions. They won't give you specifics of the loan but they can tell you where it sits. Then you can breathe easy, or light a fire under the buyer.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
No worries Tams,
The issue lies with the LISTING AGENT and her/his fiduciary relationship to the Seller in my opinion. My original statement is that it seems we are not helping matters in day 21, that's all. I know that a large portion of loan applications DO NOT CLOSE in today's market. But I am still leaning in favor of honesty of lenders. I think if we were to discredit every lender by name, we would be shooting ourselves in the foot. We can have differences of opinions and it doesn't ruffle my feathers at all. I don't like having to do the RE agent's job (keep the Seller informed of the truth and calm). 1 thing I will say about title and employees getting paid regardless, again my opinion only, if they closed 1 out of 5 orders only... employees would be let go and they would either raise prices/ask for money upfront, etc. as they do not do searches and such to lose money over the long haul. Keep rockin'.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
I agree with you Martin. His Listing Agent needs to get on the ball!
I still disagree with you about the title company issue though. I lived it for a VERY LONG GRUELLING 8 years. If they weren't working and putting orders in whether they closed or not, they'd be getting laid off for sitting around. So I guess, either way, someone has the potential to lose a job, especially in todays market.
- Ken Kopper
- Contributions:1578
Plohmier, I see where most of the agents involved in purchases I handle actually include my Conditional approval as part of the ratified contract. This contract is signed by both seller and buyer so my take is..
Why shouldnt you be able to take a look at the conditional approval? It makes a big difference if you are looking at 50% LTV loan (buyer putting a large amount down) vs. 97% LTV and might not have very strong assets.
You are the client and you can react however you want (although your agent may not like it) but I would certainly be at least looking for a rock solid HONEST explanation if I were in your shoes.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
T,
They are here... E is gone as well... no closings with orders... no business. glad it was better in CO.. Here in Fl.. they are closing (offices) not loans. You know I won't battle with you and I know you have a much clearer picture into title business... I remember. It's all good. Keep rockin'.
Online Pre-approval from buyer, should I be worried?
3 weeks before closing we found out that our buyers pre-approval came from one of those online applications. Our agent says that those online banks tend to pre-approve everyone and they're a nightmare to work with. Should I be worried that they wont get a loan? It's 3 weeks before closing date and we also need to be closing on another home we're buying. It would be a disaster if they're financing doesnt go thru!!! As a buyer, should we be cautious about people with online pre-approvals?
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