The weather was gorgeous, the leaves were turning, we had a very relaxing trip, and still, we SOLD a few homes while we were out of town! The highlight of the trip for our boys was split between the first snow of the year, which happened while we were there, and we rode horses across 4 summit peaks while it snowed on us! Here are a couple of photos we took on our trip too!
The RED Team wanted to share this weeks Mortgage Update with you because even though it is talking to Realtors about looking and checking Prequalification/Preapproval letters, buyers need to know why you need one, why, as Realtors, we are asking for the letter, and we want you know the what your true preapproval amount should be or could be so you can make an offer on a home. It is also for the Realtor and seller’s safety that we ask for a Prequalification/Preapproval letter before we show you a home. The Mortgage Broker or Lender has your information and as a Realtor, we do not have to worry about the preapproval and personal information. Then, everyone is on the same page and you can go look at houses and make an offer if you are ready!
SpiritBank Weekly Mortgage Memo
Today’s Topic: Prequalification/Preapproval letters
These days letters are standard practice. There are, however, lots of stories about loans that bust even when a letter was presented. There are myriad reasons for this and most of them start with the loan officer. Very often loan officers don’t dig deep enough. Or they don’t verify income. An amazingly large number of people don’t know what they make and relying on a conversation or online application can be fraught with peril. Buyers will state their gross income if self-employed or include overtime in their number. Lots of folks who are 1099’d don’t think their self-employed and don’t offer that information unless prodded. So when you get a letter from someone you don’t know or your spidey-sense is tingling here are some questions to ask a loan officer to improve the letter’s chances:
1. Have you reviewed paystubs?
2. Have you reviewed tax returns?
3. Have you verified funds to close?
These are especially important with self-employed, commission and overtime employees. The tax returns will also reveal (assuming the loan officer looks) buyers with unreimbursed business expenses that we deduct from their income.
- Info provided by Tom Davies
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