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Pre-Approval

As many of you know, I don’t write often…but when I do, it is something I am passionate about and something I wish to share. Every day we have the opportunity to sit with a client who has a unique story, situation or circumstance. One lesson I have learned over the years is people will pursue the path of least resistance. Now this article is specific to the Housing and Mortgage Lending Industry, but can be applied to almost any credit or lending situation.

In current times, many of our clients are in the credit healing stage. Credit Scores are on the rise and some of those old debts from the recession may not even be reporting any longer. Hopefully, the lessons we learned will stick with us and we will be wiser and more strategic with money and credit. With that said we sometimes have a short memory and will repeat bad behaviors.
In the last month, more and more clients are coming to us desperate to obtain a Mortgage. Many of our clients are very anxious to get back in the game of buying, credit, and simply hearing “you’re approved.” We recognize how these are fundamental parts to our economy, but we can’t forgo the needed details and action plan.

Too often I hear clients say, “I can’t close on my house”, due to some lingering credit issue. When I dig deeper and review the credit, I realize they were “throwing it against the wall to see if it sticks.” Everyone involved tried “short-cutting” the process and then it blew up last minute. As professionals, we need to slow clients down and give them a reality check. We need to let people know that this needs to be done the correct way and not buy into the panic or frenzy.

Clients seek professionals for their advice, direction, and validation. Websites can spew out data and numbers, but they do not offer a specific strategy or “roadmap” for the client. In my opinion, we need to be consistent with the process and advice. Never allow the client to control the timeline or alter what needs to be done to achieve real success.

In closing, we want you to know that we are here to offer advice and assist you with your client’s credit concerns and issues. Credit is complicated and people need specific help. Why not capture that client and have us assist them? Rather than allowing clients to seek the short cut, let’s do it right and get them positioned for a loan the correct way. By the way, they will come back to you when we are done as a loyal, happy client who has accomplished their dream with no drama!
Harry Snedden

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