Loan Officer Steve Dunnett lays down the law on mortgage pre-approvals...there's a new sheriff in town!
In the past few weeks I’ve spoken to several customers who told me that their loan guy had pre-approved them for a mortgage without running their credit or obtaining any documents. These people were surprised by the amount of documentation that I had requested in order to issue a pre-approval for them. I was more than surprised that other professionals had provided a pre-approval letter to anyone without documentation.
The amount of documentation that needs to be obtained for a loan these days has increased. If a loan officer you’ve spoken to is providing you with a pre-approval without first obtaining and reviewing your documents than that person is doing you no favors. In fact, it’s more like they are putting you on a rickety plane with an inexperienced pilot, no seat belt, and no flotation device. You could end up swimming in an ocean with the sharks.
Seriously, receiving an unqualified pre-approval and then not being able to obtain financing could be devastating to you. Before issuing a pre-approval your loan officer should at least be reviewing:
- 2 years worth of tax returns
Without these items you and your lender will not have an accurate picture of your ability to obtain financing. If you received a "pretend approval" OR have any questions about getting a mortgage pre-approval please give me a call. I would be happy to be a resource for you.