On Monday, we had a borrower and Realtor refuse to remove a loan contingency until they had a chance to review our written loan approval. The written approval from the underwriter was extremely clean with almost no conditions; contingencies could have been removed without any concern.
The problem with providing written approvals to borrowers and Realtors is that they do not know how to read them b/c they are not in the industry. Even the cleanest approvals have a variety of perfunctory loan conditions that almost all approvals have.
The large number of conditions often concern Realtors and borrowers alike, even though the conditions will be automatically or very easily satisfied. These conditions include paper-trailing retirement funds withdrawal, signing FHA forms (not available prior to approval), signing other disclosures, verbally verifying employment, providing proof of insurance, etc.
On Monday, the Realtor did a beautiful job of explaining everything to the borrower and the borrower then happily released contingencies, but things often go much worse when we share written approvals.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646