One of the key connections between the homebuying process and mortgage lending is the preapproval. What agent doesn’t ask their client early on, “Have you been preapproved yet?” It’s a valid question — why take the time to schedule showings if the client hasn’t been preapproved? Consumers today can self-serve, so the concept of going through the process to actually be approved for a mortgage has taken on a different feel. While there are definitely some advantages of the “anytime, anyplace” ability to get that preapproval letter, the process behind actually getting approved for a mortgage has not changed much. This is why we feel confident saying, “Not all preapprovals are built the same.” Let’s dig into the reasons why.

When consumers self-serve and obtain a preapproval letter online, they most likely did the basics to get a preapproval letter they can download themselves. The consumer may not have had a professional loan officer actually review the information for accuracy and completeness — which could lead to a different outcome. It’s safe to say that when you get a licensed loan officer involved, the quality of the preapproval increases — but the degree to which it does is all in the hands of that loan officer.

I don’t think we are going out on a limb to say who is reviewing that borrower’s information and documentation matters. It’s also about going beyond the review and consulting with the client to not only ensure the client can qualify for a mortgage but will qualify for the BEST mortgage for them and their situation. So what should the preapproval process look like for your borrower?

• An actual consultation with a loan officer to better understand the client’s needs, short and long-term goals, various options available and education of the entire homebuying and financing process.

• The use of tools to analyze income, credit and assets to ensure what the client is looking to be qualified for can be achieved and will be accepted by the underwriter once the contract is finalized — something we’ll cover more next week!

• A collaborative relationship with the buyer’s agent to construct an offer that has the best chance of being accepted.

• Proactive communication with the listing agent during the offer sets the tone for a high level of confidence and communication if their offer is to be accepted.

Asking if your buyer is preapproved is not just checking a box on a checklist before showing them a home — it’s a crucial part of the entire homebuying process and who your clients speak with matters. Our Key Mortgage loan officers approach every client with a consultative lens that will put your client’s mind at ease, put you in the best position to win the offer and ultimately help drive a successful transaction. Happy clients make for a great referral source!

And remember, if your client already has a preapproval, our Second Look offering gives them $250 just for having that consultation with your Key Mortgage loan officer.  Eight out of ten people who started with another lender end up using Key Mortgage. So let’s start the spring market on strong footing and get your client preapproved with Key Mortgage!