Don’t Get Pre-Approved by These Companies

Don’t Get Pre-Approved by These Companies

The Bank that you get pre-approved with matters.

We recently had a client that got pre-approved with a not to be named internet bank. She started the pre-approval process before we had initially talked. She found a home that she loved and extended a very competitive offer that was far over asking price. It turns out another offer was close and she ultimately lost out… The swaying factor, the bank on her pre-approval.

So why do these banks have such a negative perception? For many reasons… And some are deserved. Some are reputations of a long time ago that are still haunting them. Some might not even be deserved, but that doesn’t matter. Perception is reality.

One of these banks that have a negative reputation provided a loan commitment and told the buyer she was all set to close. But two days before closing they called the soon to be home buyer saying that in final underwriting there was an issue and she needed to bring an additional $20,000 to the closing table. $20,000 is a lot… Let alone 2 days before closing. And them doing this after the mortgage commitment meant that she would lose her deposit. CRAZY

Another bank that you should not get a pre-approval from is known for their delays in underwriting and having to push out closing beyond planned closing dates.

Another Bank is known for their quick pre-approval. And their pre-approvals in the industry are known to be worth less than the TP you wipe your backside with.

We recently had a local Mortgage Broker who disappeared during the loan process. Promised the moon. Let the loan commitment lapse. When it came down to bras tax, they still did not deliver on their promises. Their inability to perform cost that mortgage broker $2,500 and cost our client nearly their entire deposit. Not to mention all the wasted time spent!

Another big Bank is known for being super responsive and competitive during the quoting process, then completely disappearing once the transaction goes to underwriting. It’s difficult getting extensions on contract dates from sellers when there is zero communication!

And boy… Don’t even get me started on Internet Banks!

I could go on and on with additional examples, but really what is important to know is that working with a bank with a good reputation doesn’t cost you anything and it could be the difference of whether you get the deal or not.

And as an FYI… Online “reviews” are a bunch of crap.

So, about that list… I checked with the Lawyers and they STRONGLY advised me not to raddle off any names of companies here… BUT if you email me at [email protected] then I will send you a list of banks that I personally would not recommend. DISCLOSURE! This list is my personal professional opinion!

But they did say I could give some names of banks with good reputations. I find that a pre-approval from RMS Mortgage or Guaranteed Rate are viewed very favorably in our marketplace. Other companies like Leader Bank or First Republic are also phenomenal banks to work with.

A lot of people will get the pre-approval before they start shopping for a home… And that is GREAT! You just don’t want to go through the hassle of getting pre-approved and then that letterhead that the pre-approval on put you at a disadvantage. It could end up costing you a lot of time, hassle and your dream home.