The Loan Officer Sends the Pre-Approval Letter to Whom?

Question

New hopeful investor here. Have a loan officer that 'preapproved' me on Friday but today said she wants to send the preapproval letter directly to the agent. This is a little complicated because I don't have one! Are some companies unable/unwilling to just send directly to me? All of the guides/tutorials I've read don't specifically address this and I'm not sure what to expect here. Any/all help appreciated.

Courtney Jones · Answer

It is sent to you as the applicant. It is your job to distribute it to your realtor.

Elise Marquette · Answer

@Zachary Dooley they should send it directly to you. No biggie. In the lending world we don’t usually see people get approved before finding a realtor so probably just a simple misunderstanding. Your lender probably just wanted to be proactive in communicating with the agent and reach out to introduce themselves/let agent know you were thoroughly approved. Just flip the letter to your realtor whenever you decide on one

Jonathan Greene · Answer

Yes, they want to try to get the agent's business as well, but you are the client. You need your own pre-approval and most of the time you would send it to the agent that you choose. Just seems like they are trolling for more business or it could be a misunderstanding and they just assumed you had an agent and were ready to place an offer.

Charlie MacPherson · Answer

@Zachary Dooley  Tell the lender that when the time comes, she's free to share your pre-approval with an agent - if in fact you use one.  What if you buy a FSBO without an agent?

In the meantime, tell her that if you are to do business with her, you require your own copy right away.

If she refuses, find another lender.  They're a dime a dozen - and getting your credit pulled again in a short time for mortgage loans doesn't ding your credit score the same way as applying for multiple loans for multiple purposes does.  You have nothing to lose by moving on.

I'm wondering whether you got a pre-approval without the lender reviewing the supporting documentation, such as bank statements, W2s, pay stubs and tax returns.  Pre-approvals aren't worth the paper they're printed on until those docs are received and reviewed.

Good luck!

Zachary D. · Answer

Thank you - this is how I understood the process as well. This lender seems to be one of the biggest and most successful lenders in the state - why do you suppose they're taking this approach? Are they wanting to use this to connect me to an agent? Why would they care if I have a copy?

The Loan Officer Sends the Pre-Approval Letter to Whom?

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