Lighting Fast Pre-Approval

[David Campbell]

I was hoping to get some input from anyone who has done financing through Quicken Loans.

It's somewhat interesting (I think) the way I got into contact with them. I was reading a blog post written by a BiggerPockets member about investing in multi family properties using an FHA loan and the blog included a link to a webpage to find out details for such loans based on location. I filled out the basic info and immediately after I hit submit, I got a call from Quicken Loans! It kinda freaked me out a bit at how fast they responded!

I ended up talking to a gentlemen who gave me his info and asked for my background, financial situation, etc. Since I got the call so quickly and I've never purchased a property before, I was quite hesitant at first, but he promptly gave me his info so I was able to look up his credentials. Long story short, I got pre-approved for $275,000! I haven't done anything past this yet, but I'm waiting for a call/email from a realtor in the area so I can move forward.

It's funny that this happened because I have been hesitant to move forward out of fear, inexperience, etc. I'm glad I got the call because now it is forcing me to take action which I now is huge. The only other issue right now is figuring out if I actually want to purchase a property here (since there is a possibility I'll be moving to a new base -- not quite sure) but that's a whole other topic....

Anyway, all that to ask...have any of you worked with Quicken Loans? If so, what kind of financing did you use? VA Loan? FHA Loan?...Did you work with the realtor they suggested and how was that experience?

[Chris Mason]

Originally posted by @David Campbell:

I ended up talking to a gentlemen who gave me his info and asked for my background, financial situation, etc. Since I got the call so quickly and I've never purchased a property before, I was quite hesitant at first, but he promptly gave me his info so I was able to look up his credentials. Long story short, I got pre-approved for $275,000! I haven't done anything past this yet, but I'm waiting for a call/email from a realtor in the area so I can move forward.

Their reputation for stated income and stated asset preapprovals are why many listing agents (good ones, anyways) will toss your offer right in the trash when they see that it's Quicken. There are no more 30YF stated income loans, so 'asking' a consumer what they earn serves no purpose. 

Find someone local to where you will be investing that asks for tax returns, W2s, paystubs, bank statements, etc. A competent mortgage lender does not "ask you" what your income is, they look at the paperwork and tell you what your mortgage-qualifying income is. This is 2017, not 2007. 

The risk here is that you spend a grand on inspections, appraisal, you have $15k in earnest money tied up and the seller refuses to sign the paperwork to release it back to you, etc, when in reality you shouldn't have been looking at homes that expensive to begin with.