Prequalifications Become the New Normal After Oct. 3 - Baird & Warner
Education, Finance

Prequalifications Become the New Normal After Oct. 3

When the new TRID regulations go into effect on Oct. 3 — extended from Aug. 1 — lenders will no longer be able to require a borrower to provide verifying documents prior to writing a preapproval letter. Loan officers will need to rely upon information that the borrower willingly volunteers in order to avoid triggering TRID’s three-day window for delivering initial disclosures.

“Prequalifications are going to become the new normal, which means you’re going to have to rely on the loan officer’s’ judgement and experience when deciding if someone is a good candidate for a loan,” said Esther Phillips, senior vice president of Key Mortgage Services. “The best thing you can do to make your deals go smoothly is to have a team of professionals in place that you can call at anytime and trust with your transaction.”

The Key Mortgage Second Opinion program is a great way to obtain extra verification regarding a buyer’s financial status. To participate, clients will need to provide a preapproval or prequalification from another lender prepared in the last 30 days, obtain a preapproval or prequalification from a Key Mortgage loan officer and provide a fully executed contract to purchase within 60 days of meeting with Key Mortgage. They do NOT need to obtain financing from Key Mortgage to earn the $100 gift card.

Contact a Key Mortgage loan officer today to learn more.


You may also enjoy: