I’m currently working with a sweet young couple looking to buy their first home here in San Diego.  Yesterday we found one that seems to have most everything they’re looking for, so we sat down to talk about writing an offer.  Prior to showing them homes of course, I made sure they were pre-approved at the price point of our search.

Discussing the offer and reviewing the confidential remarks on the MLS listing sheet, I ran into the words that make my blood boil, “Offer MUST include a pre-approval by Bank of America loan officer Bill Jones.”  This makes me crazy!  Here in San Diego it appears that Bank of America and Chase require a pre-approval by one of their assigned loan officers on all of their REOs.

My buyer looked at me like I was nuts.  “Why do they need another pre-approval when I just went through the whole process at my credit union?”  He is a VA buyer and has a perfectly good pre-approval from Navy Federal Credit Union, so why in the world does he need one from B of A?  I didn’t have a very good answer for him.

I also handle some REO listings and I understand that the banks don’t want to waste time with an unqualified buyer, and that they are trying to build loan business.  But, rather than create obstacles to offers, wouldn’t it make more sense for the listing agent to request an additional pre-approval ONLY if the original one seemed a bit sketchy?  Or, if they really want the business, how about offering an incentive like a free appraisal or point reduction?

When it’s time to write an offer, I want to move quickly – not waste a couple of days chasing down more paperwork!

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