Yes, it’s still happening! Pre-approved buyers are winning bids on their future homes only to find out that their mortgage lender didn’t really pre-approve them as they thought.
Just last week a borrower was referred by an irate real estate agent. The buyer had a pre-approval from a company whose marketing touted that they deliver a fully underwritten commitment letter in just 7 days! And they did just that however, no one pointed out to the buyer or their agents that the letter was subject to verification of income and employment.
This lender did not review recent and past income documentation for this pre-approval. The borrower had recently changed from a full salary role to a full commission role and didn’t have enough history of receiving only commission income required to qualify for their mortgage.
Make sure that you do not go through the laborious process of bringing a new listing to market, fielding perhaps multiple offers, selecting one offer to accept only to find out days later that the buyer cannot complete their transaction. Otherwise, you will be starting the process all over again.
One of the best ways to ensure that the qualifying letter is correct is to call the lender directly and ask these questions:
- Did you review income and employment documentation for this borrower?
- Have you confirmed that the buyer has enough assets today to complete this transaction?
- On a scale of 1- 10, how confident are you that this loan will close, excluding anything to do with the property (appraisal, inspection, title, condo details, etc.)?
- If the answer is under 10, determine how long it will take the lender to address any areas of concern.
Protect your reputation. Protect your relationships with sellers, buyers and cooperating agents. Spare the heartache. Make sure that your borrower is working with a lender who cares to get it right from the start every time!
I was recently searching the Internet for statistical information regarding successful sales. How much more likely are you to land a transaction when you pick up the phone when the client calls? Or, how does a quick response to an inquiry impact your likelihood of your gaining the sale?
There are a lot of statistics on how to increase sales performance. There are plenty of metrics and data on this topic, especially for those sales people whose job requires them to cold call or respond to a lead driven business.
Harvard University did a study on cold calling and cold emailing. Did you know that Wednesdays and Thursdays are the best days to cold call? Did you know that the most important factor to getting prospects to open your letters for an email campaign is having a snappy subject line?
You can learn all types of sales information online. Sales training resources abound in the form of live training programs, seminars, publications, webinars and programs. However, I can tell you one thing that I KNOW about sales success that does not require a Harvard degree to understand. Answer your phone whenever you can! If you cannot answer your phone, return the call as quickly as possible. The person who connects with the client first has the upper hand in winning the sale. Being available, being responsive, being on top of communication are simple acts and easy to manage. When I read about a negative sales experience, the consumer is usually talking about these exact behaviors; my person didn’t call me back or was unresponsive, or didn’t communicate clearly to me with next steps.
Is this you? If you are in any business that requires direct consumer contact, you are in sales. And being responsive, on top of executing the transaction and communicating effectively, will win you the trust of your clients, their repeat business and their referrals. Regardless of your industry, you don’t need a statistic to tell you what it takes to take care of your customers. Just treat them as you would like to be treated!
** Harvard study reference: http://www.leadresponsemanagement.org/lrm_study