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Quicken Pre-Approval Question

Starting the home shopping process due to a relocation offer from my company. Quicken loans is thier "perfered lending partner" but I am not obligated to use them. I decided to get a pre-approval from them (as well as others) to see what they have to offer. Based on what I read here many people report quicken does a quick convo and credit check to issue a pre-approval. The relo banker I am working with has requested the normal approval documents to submit to underwriter to issue a "final" approval as she is calling it. Any ideas why they are going the extra steps to get me a preapproval letter. I will add that two other lenders had me a letter in hand within an hour.
  • August 23 2013 - US
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Answers (7)

Why do RE Agents roam the mortgage section preaching for people to contact local lenders?

Justin is more than correct in that the "local lenders" usually work with contract processing and underwriting.

Also not all "online" lenders are strictly online. We have online locations, retail, hybrid, etc...

No matter who you work with make sure there is an actual conversation. Just because an AUS spits out an answer based on a few numbers, does not mean there are not other issues that will need tackled. Working with someone with the ability to detect the red flags early goes a long way in insuring you close on time.

Chris is spot on. A quality preapproval is worth far more than one obtained for the sake of putting in an offer. Keep in mind too that most preapprovals, especially those created by an AUS, spit out a maximum purchase price. Every situation is different and what range you should be shopping in should never be dictated by a preapproval maximum.
  • September 06 2013
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For me, I will not issue a pre-approval letter unless I have : 2 years tax returns and w2's, two consecutive previous bank statements (for all accounts), paystubs and any 401k / retirement statements.

Why do I ask for this? This information allows me to make sure everything in the Automated Underwriting System is correct and we wont run into problems down the road.

All of the agents I work with know that if a client is holding one of my pre-approval letters that, that transaction will close.
  • September 05 2013
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Different lenders are going to work different ways. I like to get those documents so that I personally know the loan will work, but it's not something I always require. I ask all the right questions that the Underwriter will want if they can't send in documents for whatever reason. If you were upfront with your answers, I'm sure you will be fine. 

Many lenders feel a Pre Approval letter is the key to landing your business, which is why they send one out very quickly. You are going to want to work with the one who sounded like they were the most competent and you feel is looking out for your best interests. Remember, you get what you pay for. Even though one lender may be 1/8 point lower, if they don't have the knowledge to close your loan, what rate did you really get?

Also, I slightly disagree with Josh. Just because a lender is local doesn't mean they are any more likely to be able to be reached than a non-local lender. Many local lenders and many "online" lenders don't close on time. Many do. If that's something that's important to you, you need to ask if this doesn't close on time, what they will offer you for not being able to do their jobs in a timely fashion. Local lenders typically send their processing and underwriting to a different location. This means they have LESS control over the loan than someone who has all the processing and underwriting done at their location. I would recommend you trying both and seeing what works best for you and your situation. 
  • September 05 2013
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Go get a local lender's approval, a local lender can close on time and is able to be reached while the deal is in process. 
  • September 05 2013
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When you receive pre-approval letters that are based on limited information and have not been underwritten you should understand that the pre-approval letter is only as good as the limited information you provided to receive this. I strongly suggest that you obtain a pre-approval letter that has been underwritten.  It is better to have a rock solid approval so you shop with confidence and pull the trigger quickly should you find a home that you want to move quickly on.  It would be my pleasure to explain this more clearly live and of course to assist you if you want another quote, etc for comparison.
best of luck-
Jay Levitt
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  • September 05 2013
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Due to the nature of your purchase,  you are pulling up roots and moving to another location, The relo banker wants to make sure you're not going to have any 11th hour issues. I personally don't issue Pre-Qual Letters, all my clients get a Pre-Approval Letter w/ a AUS (automated underwriting system approval) which outlines what conditions will be necessary to close the loan. Anything else is worthless paper that can lead to canceled escrow.

Best of Luck
  • August 27 2013
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Hello,
There are two types of approvals. The first comes from running your profile through a computer software system for Fannie Mae, Freddie Mac, FHA, or VA to see if you fit under their guidelines. This is typically done with information you provide over the phone and can be done fairly quickly. Once it appears you are eligible and you are happy with the terms they can submit your file to the underwriter to get the final approval from the bank. Maybe you didn't make as much as you thought on the phone or other information was incorrect leading to a false positive result. The underwriter is checking for accuracy from the original approval you got. If all the numbers the LO inputted were correct and you fit the banks guidelines you are set! However it is important to distinguish the difference between being eligible and being approved. You can be eligible for a loan but that does not mean you will get approved. For example if Bank ABC doesn't write loans on condos and you submit your loan application to them they will reject you even if you get the initial approval from the software system. So you could be eligible for the loan but that doesn't mean the bank will do it exactly as the software wants it. These are called bank overlays and seeing as how they are lending the money they can have tighter rules than what the automated software is asking for. It is because of this that it is VERY important to work with someone that knows which banks are going to accept your specific type of transaction. All loans are different and each bank accepts different types of loans and has different overlays. It is smart to shop around to get the best price but also remember you get what you pay for. You might get a cheap LO to work for you but if he doesn't know the rules for individual banks and 30 days into your transaction you find out they can't do your loan because something they missed upfront you will be out way more than if you had gone with a more qualified loan officer.

Best of luck!

  • August 26 2013
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