How Beneficial Are Pre-Approvals In Changing Market Conditions?

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How Beneficial Are Pre-Approvals In Changing Market Conditions?

Key notes:

Are they worth doing in the current market where assessment rates and interest rates are changing.

We have got to start understanding the time we spend with the client and the time we work for the client.

If you get a client pre-approved through a particular lender and you know that another lender is coming out with a better offer in a few weeks, then you’re doubling your work.

Pre-approvals can be worthless in a lot of situations if the property price changes, or a client’s situation changes or so many other things so there are a lot of challenges.

For some clients it’s dicey for them to bid at auction if they don’t have a pre-approval. Make a call on which clients can proceed with the application and have plenty of spare equity and deposit so that if something changes, they’ll be fine.

A mortgage broker needs to educate your clients that a pre-approval is not a guaranteed approval. You can help them to understand what it is, and what it really means.

If you’re not willing to do a pre-approval for a client you may lose that client, or your client might not feel comfortable going for auction properties without the pre-approval.

Understand a client’s ceiling of what they can borrow and educate them around the options available for them.

The lenders reserve the right to reassess applications after pre-approval or even formal approval.

A pre-approval is not as valuable as most clients feel that it is.

If we’re doing a pre-approval then why are we doing it, what is the value, and how do we maintain it to become an approval for the client?

Key Quotes

“We need to tell the story a little better for the client. A pre-approval is just a piece of paper, but you tell the client the story and get them to talk to you as their advisor and connect with you.” - Ruan

“Find your skill of engagement rather than your skill of securing pre-approvals” - Ruan

“Making sure your clients understand what a pre-approval is, what it means and that it’s not a formal approval.” - Marissa

“How valuable is a pre-approval for most clients? Probably not as valuable as clients think. But is it important?” - Marissa

Thank You To Our Hosts: Ruan Burger and Marissa Schulze

More From Marissa and her company, Rise High Financial Solutions:

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More From Ruan and his company, Success and Broker:

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