Making a difference comes down to a few key steps. Did you know that a sizable 15% of Americans plan to buy a home in 2025? That’s a lot of mortgage pre-approval letters!
Making a difference comes down to a few key steps.
Did you know that a sizable 15% of Americans plan to buy a home in 2025? That’s a lot of mortgage pre-approval letters!
And, with financial literacy rates at generally low levels, many of these soon-to-be borrowers will need expert mortgage professionals to help them navigate the mortgage pre-approval process now more than ever.
That’s where you come in!
From clarifying definitions, to providing documentation checklists, to addressing roadblocks with empathy, you can help your clients navigate this new road with the utmost confidence.
Here are some steps you can take to provide the most value possible:
Defining Mortgage Pre-Qualification Versus Mortgage Pre-Approval
To kick off your conversation, consider defining both pre-qualification and pre-approval for your clients. They’ve probably heard one or both terms thrown around but are unlikely to know the difference.
Make a point to discuss how pre-approval can hold more weight than pre-qualification so, while it might require more work, they might also see more benefit in their home search. In other words, try your best to communicate that pre-approval is often worth it.
Investopedia offers an in-depth article complete with a few straightforward graphics, if you’d like to send them home with something to study.
Explaining the Mortgage Pre-Approval Process
Once your clients are clear on the definition, it’s time to clarify just what they can expect.
Here’s a sample script you can use:
“We’ll start by collecting some documents that illustrate your financial situation. Then, I’ll submit them to a mortgage lender, and they’ll decide if they can pre-approve you for a mortgage loan. If you’re successfully pre-approved, they’ll get you a letter stating just how much you’re pre-approved for. You can then take this letter along when you go house hunting, to show that you’re a serious buyer ready to move.”
Be sure to check for understanding here and thoroughly answer any questions that might pop up.
Issuing Warnings Re: Mortgage Pre-Approval
As your clients familiarize themselves with the mortgage pre-approval process, it’s important to lay out a few clear warnings.
Clarify, in no uncertain terms, that the client shouldn’t:
- Take on new debts or lines of credit. Walk them through the concept of a debt-to-income ratio and illustrate how new debt could skew theirs.
- Change jobs or alter incomes. Explain that lenders like regularity. Even a new job with a higher income could look like instability.
- Make large deposits without documentation. Clarify that gifts can be used for a down payment but that any questions about origins could slow the process.
Remember, these things seem obvious to seasoned mortgage pros, but they aren’t to the general public.
Gathering Documentation for Mortgage Pre-Approval
Now, it’s time to support your clients as they compile All. Those. Documents.
Walk through each one, as well as any additional documents their situation might require, including:
- Pay stubs
- Tax returns
- Bank statements
- Employer’s contact information
- Investment account statements
- Loan statements
- Credit report
- ID
💡 TIP: To go above and beyond, consider providing a branded checklist of required documentation for the mortgage pre-approval process.
Then, check in often to determine how they’re progressing.
Addressing Roadblocks in the Mortgage Pre-Approval Process
The mortgage pre-approval process doesn’t always go how the mortgage pro, or the client, would like it to. When roadblocks crop up, it’s your job to manage them skillfully and professionally.
If any documentation is out-of-date or incomplete, address it as quickly as possible. Encourage clients to move quickly, but don’t worry them unnecessarily. Again, be specific in your asks so they can make sure to get it right the second time.
If there’s a new issue with the borrower’s credit, you might need to press pause for some counseling. Reiterate how they can get their credit score and take a look at what might be causing a drop together. Advise them accordingly, whether that’s contacting the reporting agency to remove inaccurate information or helping them understand potential delays as they work on credit building.
If the client takes on new debt or switches jobs against your advice, ask for a sit-down to discuss and come up with a new action plan. This might include waiting on pre-approval.
Regardless of the issues, the very best mortgage pros show up in a calm, professional, and ultimately empathetic manner.
Remember: A home is the biggest purchase most people will ever make, so it’s reasonable they approach this process with some big emotions. You can meet them where they’re at by flexing your EQ skills.
Wrapping Up: How to Help Borrowers Navigate the Mortgage Pre-Approval Process
Mortgage pre-approval can prove difficult and intimidating for plenty of first-time homebuyers. But, with a dedicated mortgage professional on their side, navigating this process becomes so much easier.
By communicating clearly and effectively, providing helpful, relevant resources, and approaching clients with empathy, dedicated mortgage pros like you can make a measurable difference.
Happy helping!
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