That education has to be current, within the present housing market parameters. That means the education needs to apply to what is going on today, in the present real estate market.
For example, at the time of this posting, we see that a multitude of real estate lenders who are giving loan approvals on paper without completely approving their clients.
Those clients are writing offers on our sellers listings, therefore – our sellers need to be educated and BLAMED!!!
By BLAMED, I mean the following: When we meet with our sellers, we discuss the market. We talk about this phenomenon and discuss the best way to make it go away.
I then explain to our real estate seller that we are going to BLAME them in order for this to occur and place the following text within the Multiple Listing Service Private Remarks(those only seen by the Realtor!).
“The Seller’s would like the cross qualification of all buyers with (insert name of one of our approved lenders). Buyers have no obligation to use (insert name of one of our approved lenders) for their mortgage. This is for Buyer verification and cross qualification only.”
After I give the full dissertation related to the market and lender’s “approval letters” not being worth their paper, they get it and they are happy to be Blamed for the “cross qualification” verbiage.
FYI – to get qualified with a real estate lender or mortgage broker, there is more than a verbal discussion. It requires lots of paperwork to be turned into the lender in hard copy form. That paperwork then has to be entered into an online system that will give an approval or will give a rejection. That process does not happen in a few minutes. In most cases, it takes hours to days to complete. That is the approval process and it is the only way to make sure a buyer is really approved!
Remember, this is not to make the buyer use a lender we or the seller’s know. This is to make sure they are able to finance the home.
We have run into too many who cannot at the fault of their lender not doing their due diligence during the pre approval process.