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About my Mortgage Broker

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Anonymous
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About my Mortgage Broker

I submitted my information to a mortgage broker my realtor recommended.  I pulled my scores from myfico.com and  All 3 scores are in the low 700's.  I saw a townhouse I liked and placed an offer on the town house. The mortgage broker never pulled my credit reports.  
 
How is it possible that he could submit an approval letter to the seller's bank without me going through the full approval process?  I make $45,000 and the townhouse is $100,000.   He and my realtor have been doing business together for the past 20 years. 
 
I'm a nervous wreck now because it's a short sale and the bank has not sent my realtor a revised contract.  After negotiation, they decided to pay a portion of my closing costs.  I have been waiting almost 2 months.....
 
Is it too late to back out of working with him and just go with my Credit Union or traditional bank?
 
 
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1 REPLY 1
ShanetheMortgageMan
Super Contributor

Re: About my Mortgage Broker

When a client has exceptionally strong credit, and appears to easily qualify, some loan officers will issue a pre-approval letter knowing that you should have no problem qualifying.  It's not the safest practice, but there are folks out there that will do that.  Usually loan officers will "chomp at the bit" to try and run someone's credit to make sure they are working with someone who can qualify, or to help them shape their advice on how the client would qualify in the future.  I would contact your loan officer and explain your concerns, if they are able to alleviate all of them, and of course you like the fellow, then I'd suggest continue working with him.  If he blows you off, doesn't provide you relief, or is generally just a **bleep**, then I'd let him know you are going to look elsewhere and then contact the lending source of your choice - be it your CU, a bank, or another mortgage broker.

On the short sale side of things, often the bank who has the mortgage on the sellers home will take awhile to respond, on average I see them respond within 2-3 weeks, so 2 months is definitely too long in my opinion.  They might be stalling in order to take the home back (foreclose) and try to sell it on their own without involving the seller/short sale process.  Recently a client of mine made an offer on a home down here in Orange County, CA and the seller accepted and wanted to get the ball rolling, but it turned out the bank that owned the mortgage had other plans, which his why they didn't respond to the short sale offer.  So you could very well be wasting time with this home when there are other homes out there you could close on quicker, and without as much hassle.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
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