I'm presenting an offer today or tomorrow on a bank owned property and the listing states:



My client has a prequal from sunnymtg.com which is licensed as a Mortgage Lender in Florida. They don't want to go to one of the major lenders to get another prequal and their mortgage broker insists that his company is a direct lender.

The property is owned by Deutsche Bank.

I have explained to them that they can go to Countrywide, spend about 15-20 minutes on the phone and get a prequal from them, and this does not obligate them in any manner; they can still use their mortgage broker (who is a family friend).

The mortgage broker advises them not to do that and says it is not necessary since sunnymtg.com is a Mortgage Lender.

Does anyone have any experience with whether Deutsche Bank will accept a prequal from a company like this? I hate to submit the offer and have it rejected because of the prequal letter.

Thanks.

that's what I'd tell your buyer - that you don't think they will accept it with the current letter. sure does'nt look like a direct lenders site to me.

i would stress the importance of getting accepted by playing by one of the rules stated. personally, i choose my battles and there might be something bigger down the road that warrants the negotiating much more than this! just my opinion.

As a REO listing agent I often have issues with loan officers like this and if I get an offer using one of these I tell the agent to have his client use a proper lender and the same for title company. I've had way too many deals go belly up because of a poor understanding of the REO purchasing process by flakey lenders and clueless title companies.

If I get objections it's usually due a language issue so I tell the agent that based on experience I cannot recommend my client accept their offer and that direct/major lenders have loan officers that can deal with language issues.

Nigel

What happens if they go to another lender but can't get pre qualified, would that affect their situation with the one that they already have pre qualified with.

I'd say if they couldn't get qualified with another lender then even their qualification with their current lender is questionable. It wouldn't affect their qualification with their current lender. I'm just saying then you have to question why one would qualify them and one wouldn't. I've found actually it is easier to get someone qualified with a direct lender then a broker. I thought I would add this after checking that brokers website. I wouldn't trust them at all. That website following my curser really annoyed the heck out of me.

I agree. It looks very unprofessional.

I don't think the hesitation is that they're afraid they can't qualify with the direct lender. They have good credit and their income is adequate to qualify for lots more house than they're buying. I think it's just that they don't want to upset the family friend mortgage broker that says it's totally unnecessary.

"I think it's just that they don't want to upset the family friend mortgage broker that says it's totally unnecessary."

You have a few different issues here.The friendly mortgage broker is AFRAID that they will get a better rate going direct and cut them out of doing the loan.That's why the MB is saying it is not neccessary they are scared of losing the deal.

Often times approvals form internet companies and small establishments aren't worth the paper they are printed on.

Alot of times buyers get qualified for a loan that changes or is no longer offered or the rate does not get locked in changing there interest rate and payments.The REO bank wants to know they can qualify for many loans to purchase not just one type of loan that has a small chance of happening.

It won't affect there credit either as they count credit pulled for loans in a 2 week time period as one inquiry because they know buyers shop loan rates.

For your buyers make sure they have a locked rate with there offer or they have nothing.Try to get a free float down in there as well in case the rate goes down before closing.If they are going FHA and the MB is not that familliar with them make sure to include the FHA premium in the total mortgage payments.

The bank will defintely want them to qualify with them especially with an unknown small company such as this.

I have been in the Mortgage business for over 8 years. There are different Banks and programs. Having worked for a few Big Banks, they have certain guidelines they follow. If it doesn't fit into the box they won't do it. However some smaller Lenders take different risks. For example: B of A may say no and PMAC may say yes. That's why it is great to be a Broker. You can match your borrower with the right program. I hope this helps.