Realtors: I know that one of the first things you ask, when working with a new client, is if they need a mortgage to buy a home—and if they have been pre-approved for a mortgage. If they have not been pre-approved, I’m sure you recommend that they talk to a lender (hopefully me) to make sure they qualify and at what loan amount. However, not everyone will take your advice. I’ve pulled together a few realtor mortgage tips to help you get your clients pre-approved.
We all know buyers must be qualified at some point in the process to buy, even better if it’s before putting in an offer – making the deal much more secure. These realtor mortgage tips will help you better explain the mortgage process to your clients to better understand why it is we need a pre-approval in place.
Here are my favorite ‘scripts’ that will help you broach the subject and better communicate the mortgage piece of the puzzle:
Have you checked your credit score? – One of the reasons to check your credit and your score BEFORE talking to a lender is to make sure all the information is correct. It also gives you a chance to increase your credit score because the lower your credit score, the higher your interest rate will be.
Do you know where your down payment and closing costs will be coming from? Lenders need to verify that you not only have the money to close your loan, but that you have money left over (called cash reserves) after you have signed the paperwork. So, you need to keep bank statements for at least 2 to 3 months. If you are getting a gift from a relative, certain rules apply and you will definitely NEED to talk with a lender.
Do you have a steady job or income? The loan officer will want to make sure that you have income coming in monthly to make the mortgage payments. You will usually need to provide them with paycheck stubs or investment statements showing a history of income being received. If you are self-employed, tax returns and income statements will be required.
Why get pre-approved for a mortgage? There is a difference between pre-approved and being pre-qualified. A pre-approved means that your credit has been checked and that you have the income to buy the home. The pre-approval letter is one of the advantages that you have over other buyers—especially if you get into a bidding war with other home buyers.
Don’t stretch your budget – A mortgage payment that takes most of your paycheck can leave you strapped for cash. You may not have enough money to make repairs, have fun or for future savings.
At the end of the day, we both just want to see the client happy and in a home they love; but that can’t happen until we work out the nitty gritty financial details. Use these scripts to help you help your clients get in the best financial place to buy a home and close the deal. Your client will be glad you did!
We know it takes a team effort to get the whole process completed. The LaForest Team in Greeley, Colorado would love to be a part of the team and give any realtors mortgage tips to help make the financial side of you and your clients’ transaction easier. Please don’t hesitate to contact us with any questions or if we can be of any help in getting your clients approved for a home loan.