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Lester S.  , Real Estate Pro in

looking for agent opinions on prequalification without credit check done.

Asked by Lester S. , Thu Dec 6, 2012

I am a CDPE listing broker on a short sale, we have an offer, buyer's mortgage broker has submitted the Loan Staus Disclosure (optional part of the 5.0 contract) with the first box checked...."pre-qual w/o credit check." He does not want to do a credit check until the seller's bank approves our deal. He says he does it all the time and that I should not worry, there is no need to do one because he has checked out all other important debt to income, etc. I welcome mortg broker/lender opinions, but primarily looking for agent thoughts and if you have ever seen/heard such an argument from a mortg. broker/lender. Thanks for your inputs!

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I'd recommend that my client reject the offer without further consideration. Don't let lenders and other agents determine your qualification standards, those are yours alone. There is too much in a credit report aside from debt-to-income data that can kill a deal later, so I make this a mandatory part of a pre-qual.
2 votes Thank Flag Link Fri Dec 7, 2012
I wish I had a dollar for every time someone said "don't worry". Well, I don't worry because I do what I know needs to be done and I follow my instincts honed on years of this being my career.

JOAN LORBERBAUM MOORE
Broker Associate, GRI
Lang Realty
9858 Clint Moore Road
Boca Raton, FL 33496
1 vote Thank Flag Link Fri Dec 7, 2012
John's statement is quite clear. (TU)
When involved in short sales another approach to insuring the buyer has skin in the game is a 3%, non-refundable escrow that states, "If they jump ship before bank responds, the broker/agent/seller keeps the cash."

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group,
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
1 vote Thank Flag Link Fri Dec 7, 2012
The short sale bank will need to see the buyer's preapproval anyways -- run from that one if the buyer can't produce a legit preapproval w/ credit pulled - or better yet, require that they get pre approved with your preferred lender just to be on the safe side!
0 votes Thank Flag Link Fri Dec 7, 2012
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