Whether you are a listing or selling agent, insist upon a DU loan approval, BEFORE you write or accept offers.
A “DU” is a computerized loan approval (Fannie – FHA –VA) which verifies the buyers have completed their ENTIRE loan package and (when approved) is assigned a “case number” by the investor ; which virtually guarantees there will be no last-minute (buyer) surprises before COE!
Get the Lowest Interest Rate, Fees, and Fastest Service
YouTube – Straight Talk Lending – Daniel Dobbs
The Disadvantages of “Prequals”
Pre-qual letters are only as good as the loan officer who writes them and the information they contain.
Does the pre-qual letter outline credit scores? Debt to Income ratios? Has the lender “sourced the funds” or estimated the COE. Have they reviewed the V.O.E.?
If not, you have nothing to rely on but a “best guess”. Many pre-qual letters aren’t worth the paper they are printed on and you’ve already experienced this!
With a DUs Approvals -You Take Control
There’s no more waiting on a return call from an MLO while an offer twists in the wind, instead an agent already has the DU approval in hand.
Everyone focuses on opening escrow and meeting timelines. The loan contingency period is met (before inspections and appraisal fees are incurred), COE’s are timely & competed in 35 days.
Offers are accepted more readily, which equals less property showings, less time for buyers to become discouraged in this sellers’ market and less time spent writing needless offers.
All parties avoid losing deals at the 11th hour of closing or AFTER many extensions.
Avoid Fraud! DU detects if a buyer is engaged in fraud before an agent/lender gets unwittingly dragged into it.
Advantages to Buyers!
1) Movers and tradesman’s can arrive on time
2) Vacations aren’t lost, work & school schedules are maintained.
3) Buyers can utilize a shorter rate lock period and get lower rates.
4) Avoid earnest money loss
The Challenges of “DU”s
Few lenders “fully underwrite DUs” with a formal case number BEFORE a buyer finds a property, as the process is expensive and labor intensive.
Typically its 3-4 hours of processing time & credit report fees.
But in a seller’s market and as rising rates begin killing deals, isn’t “DU-ing” files the best alternative?
Given the explicit advantages of DU; is your current lender willing to DU your buyers? And if they want your biz, is saying “no” really an option”?
The Alternatives
“Purchase transactions” have more “moving parts”, contingency deadlines and take up a MLOs valuable processing time than a refinance transactions.
If you don’t like referring buyers to lenders, you lose a degree of control over your transaction.
It’s a myth agents are required to give out 3 referral cards. It may earn them a gold star with real estate academicians but it’s playing commission roulette with your bank account.
If a buyer applies with a big media lender, that brokerage usually has a “refi” driven” business model that ADVERTISING driven vs, AGENT driven.
Hence the MLO often perceives the buying and listing agents as “1 and done” transactions, so other files may take priority in their pipeline.
Bottom line: Without a personal relationship with a MLO, an agent’s and buyer’s transaction becomes just another file in a que.
Call Me for a Full “DU” Loan Approval
Before Your Buyers Begin Looking for a Home!
Daniel Dobbs (.org)
Managing Broker
Mutual Home Mortgage
Cell: 949 250-3981
Dandobbs6@gmail.com
BRE # 00986886 …..NMLS# 307631
Copywrite © August, 2018 Daniel Dobbs MHM Mortgage /// All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed “Attention: Daniel Dobbs, Author- VP-Broker Mutual Home Mortgage 265 S. Randolph #120 Brea, Ca. 92821 Cell: 949 250-3981 Dandobbs6@gmail.com NMLS #307631 BRE #00986886