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    Lender soliciting another Lender’s client in a Cross qualification request

    When you buy real estate, and if you are using a loan, you may be asked to “cross qualify” with the lender who is known by the seller’s agent or seller.

    This is a type of vetting process which provides for another lender to check the client’s lender’s work.

    Keep following 🙂

    Most of the times, the lenders which we deal with, don’t mess around with telephonic approvals.

    They ensure actual paperwork is provided to them, credit runs, pay stubs, bank statements, account numbers, tax returns, and more in order to approve someone who wants to finance real estate.

    Furthermore, they also need to enter all of this information into a computer system that will spit out an Frustrated with solicitationapproval – called an Automated Approval. It’s a computer program used by those who provide mortgages and is the “rule of thumb” today.

    That is the rule of a good lender.

    Most times this process of cross qualification is handled lender to lender.  The client is not part of the cross qualification process.

    This is the cleanest option. Have the lenders speak lender to lender. Don’t bring in the client because it’s too tempting for the lender who is vetting them to solicit them for business.

    That is not good in the referral based world of real estate and home mortgages.

    When the package is reviewed between lenders, the one who is the lender for the home buyer and the one who is vetting them on the side of the real estate seller, it’s in their language.

    Lender A – the seller’s vetting lender – knows how to read the paperwork, the ratios, Debt to income and the other necessary data

    Lender B – the buyer’s lender – provides everything they have to the Seller’s lender.

    Desperations ugly head

    That’s it. But, when you have a lender call a real estate buyer who is represented by another lender, in order to “get more information”, that’s a lie.

    That is a lender who is soliciting another lender’s client, plain and simple.

    Here is why. “get more information” is a ruse. The lender who has approved the real estate buyer has more information contained in their file than the client could possibly have. Including credit reports and more detailed financial information.

    Be stingy and not so quick to trust

    I told my client, as I tell all my clients, if anyone calls you stating they are a party to the transaction, take their name and number, but never give them any information. Let me find out who they are and what they want.

    In this case, my client listened and she did an awesome job. The lender on the phone was speechless, especially after he made the comment of “to get more information”, that’s when I blew up 🙂

    I stand behind my clients and understand some lenders don’t do their job when it comes to qualification. Some cut corners and some are lazy.

    I don’t work with those types of lenders. We only work with the BEST lenders in the Santa Clarita Valley.

    As far as the lenders who would use a cross qualification scenario to get another lender’s client to jump ship, there is no room in my world for that!

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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