Knee-jerk Reactions

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

I received a call yesterday from a listing agent who is calling to discuss a client of mine who submitted an offer on one of his listings. My client, the buyer, is pre-approved for 100% financing and this is NOT a sub-prime loan approval. Notice I said pre-approved and not pre-qualified. The underwriter has already reviewed and approved the client's credit, income, employment and assets.

The listing agent asked me questions which I am comfortable answering up to a point. Where did it get uncomfortable? When he asked me to disclose my clients' credit score. I told him I couldn't do that because I can't. Furthermore, what good is that information to him, other than to be PREJUDICIAL? He has no idea what programs Bank of America can offer and what our credit score requirements might be. This client could be pre-approved with a 565 credit score or a 765 credit score, but the only difference I can see in the listing agents' knowing the actual score is to prejudice the offer.

I think that Realtors need to understand that 100% financing is NOT dead. In my opinion, we've seen maybe a reduction in 15% of approvable mortgage customers due to the changes in sub-prime lending. That means that 85% of those who could have been pre-approved for 100% financing in January are STILL APPROVED. The majority of pre-approved buyers you see with 100% financing are solid, pre-approved buyers.

Now please understand that I'm comfortable talking to listing agents and in fact, think it is the listing agents' job to qualify the offer for his client. That's just smart business. Just be careful not to cross into territory where you pass on a qualified buyer due to your own misunderstanding of current mortgage availability issues.

100% financing is still very much alive and first-time homebuyers shouldn't be concerned that their opportunity to own a home has gone away with the recent collapse of subprime financing.

m2c · Joined: 03 Aug 2005 Posts: 937

That's what I love about the requirement to give "score letters" to loan applicants. When Realtors inquire abpit FICOs, I assure them that they wouldn't want me to violate privacy regs but that the loan applicants have this iformation in written format and why not ask them. Usually the Realtor mutters something about that being inconvenient.

Morale: some government rules actually make like easier for us!

chow · Posted: Tue Apr 03, 2007 10:36 pm Post subject:

I love a borrower who just tells the relitter to call the LO to find out what conditions have to be met.

It just kills some realtors to NOT be able to control the transaction in their own mind.

One reason I always advise everyone to have a loan, not address when shopping for a home.

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

chow wrote:
in their own mind.

i think you summed it up

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

wtg, ken.
stick to your guns