Danger of internet lender Pre-approval letters

Minneapolis, St Paul, MN: We all have heard of the importance of getting mortgage lender Pre-approved for a home loan before shopping for home, But did you know, Real Estate Agents look down on Pre-approval Letters from big national internet lenders, and large banks.?

When submitting your offer, the sellers agent usually advises the sellers on their experiences with not only the type of financing the buyer is employing, but also their experience with successful closings of various lenders.

Out-state, and internet lenders constantly appear at the bottom of the confidence range – and rightfully so.  Large banks also have a poor rating.

The reasons are many, but two glowing reasons appear regularly:

1) Low level application clerks vs licensed experienced mortgage professionals. Poor qualify review of an application, missed items that get loans denied later on, and people told they are pre-approved, but with no hope of actually closing are common.

2) No connection or knowledge with the community. Inaccurate estimates missing local rules, not familiar with local codes, not familiar with title companies, and the worst part? With no connection to the local community, a lack of concern for ontime and successful closings. It’s easy to hide behind an 800 phone number.

Stay With a Local Lender

Real Estate Agents love local lenders with local expertise and a local reputation. Just ask them. They will never refer you for financing to a bank or internet lender – never.

So while you are free to use any lender you want, understand that you’ll improve your odd’s of a successful offer – especially in a mult-offer situation, if you have a Pre-approval letter from a highly regarded local mortgage lender like us.

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