Skip to main content

the 4 most dangerous words your loan officer will ever tell you: "Your Loan is Approved"


Most loan officers I work with are nice people. They are hard working. They are well intentioned. They want to make loans for the buyers they work with. Turns out however, that many of them speak an entirely different sort of English than the rest of us.


When your friendly loan officer assures that "your loan is approved," she does not necessarily mean that you are going to get your loan. "Approved" does not mean "Approved!" weird, huh?

Most Buyers who hear this however are willing to take the Loan Officer at his work and they direct me to waive their mortgage financing contingencies. BAD MISTAKE.

Two or three weeks later, when that same loan officer tells those same buyers that the underwriter denied their loans, it is too late. The protection of that contract provision is long gone and, in the worst of situations, so it that Buyer's earnest money and dream of buying that dream home.

The loan officers, like D-Day in the 1978 Film Classic, Animal House, essentially say [don't] "spend your whole life worrying about your mistakes! You f----d up - you trusted us! Hey, make the best of it!"

When a loan officer tells you your loan is approved, she is quite often trying to tell you "I completed your loan application - or at least most of it - and the computer software my company uses tells me that you are credit worthy. Now let me just send to this on the underwriter who will actually decide whether or not you can get your loan."

Which is why those four words make me shudder, every time I hear a loan officer utter them; Your Loan is Approved."

It goes without saying that most home buyers cannot proceed with their transactions without a mortgage loan. We are dependent on our loan officers and processors to help us either obtain the necessary financing or to at least notify us in a timely way that we need to "eject" from a contract if the loan is not going to be approved.

So why do they do it? who knows. Does it serve their clients? Not at all. Is there recourse? Almost always, no.

Whats a buyer to do? Trust nothing that is spoken, demand a written loan approval in writing.

Popular posts from this blog

THE EQUIFAX DATA BREACH AND YOU—6 STEPS TO TAKE NOW

Identity thieves hit a major credit reporting agency—hard. Millions of consumers’ confidential identity information has been compromised.

Equifax, one of the big three credit reporting agencies announced that a massive security breach took place earlier this year. Offenders accessed data sets of 143 million US consumers.

Zoiks! Real estate scams up 480%

by Michael H. Wasserman

You read that right, A 480 percent increase according to a May 2017 PSA from the FBI. Its Internet Crime Complaint Center (IC3). Scammers are targeting wire transfers with alarming frequency. As state law mandates the use of wire transfers for most real estate transactions, it's vital that every buyer, seller and professional be vigilant to prevent fraud. Here's what to look for and what you can do to help protect your money - your deal.

Check the Source: Wire transfer fraud typically starts with a "phishing" email that looks ok at first blush, but is a fake. Real-looking but fraudulent emails may contain:

A slightly different email address. It could be just one character off. Or using a correct name but from a free account, like gmail, aol or yahoo.

Legit-looking logos and email footers. Remember, logos can be downloaded from public websites from title companies and banks.

A working phone number for confirmation. So, if/when you call the…

CITY of CHICAGO CONDOMINIUM REFUSE REBATE DEADLINE APPROACHING

by Michael H. Wasserman, Attorney at Law

The City of Chicago offers refuse rebates to condominium and homeowner associations that have give or more units. Rebates are paid one year "in arrears" so that the next round of rebates will be against waste collection costs incurred in 2013. The 2013 rate is $25.00 per unit. .

Applications for the rebate must be submitted to the associations' local aldermanic office ASAP (eg, in the 48th ward, no later than January 12, 2014).

A full description of requirements, qualifications and forms needed to request the rebate is available from the Chicago City Council, Department of Finance.