Pre-Approval or Blowing Smoke up your A$$?

I truly love what I do. Helping families achieve homeownership is what we’re all about, but we do it with a twist: we get to earn a living while doing it. 

This past weekend was a great example of that. We had several buyers find the home or condo they wanted. Some were already pre-approved, which always makes things smoother, while a couple needed bridge loans to secure the homes they fell in love with. One of those I approved on the spot, and it only took me about an hour or two to get it done. 

What does that mean for you? 

It means that someone with 35 years in the business, recognized as a top lender in Santa Clarita and a top 5 lender in Los Angeles County, is willing to pick up the phone on a weekend to help you and your clients navigate the path to homeownership. 

My team and I will now take these files, piece everything together, and get them ready to close within the agreed timelines. 

Now here’s a real-world example of why these matters. 

I spoke with one buyer over the weekend who had been "pre-approved" by a large online lender. The agent asked me to take a look and issue a pre-approval. After a quick conversation, things didn’t quite add up. When we finally received the documentation this morning, the truth came out. Their income was nowhere near qualifying for the loan they were pre-approved for. 

I refused to issue a pre-approval letter over the weekend, and I sure as heck won’t do it now.   

Unfortunately, they used the online lender’s letter to secure an offer, and now that deal is likely headed toward canceled escrow. 

Why? Because the online lender did not verify anything. Not even a pay stub. They took the borrower’s word for it. I don't blame the borrower, I blame the "Professional!" That is not how professionals operate. 

If I issue a pre-approval letter, it is because I know I can fund that loan. I am not going to waste anyone’s time, yours, your client’s, or the seller’s, with something that will not close. 

We opened four solid escrows this weekend. This could have been a fifth, but I will not sign off on something I do not believe in. 

The reality is that big banks and online lenders are often focused on volume rather than service. Meanwhile, real estate agents and buyers are the ones who pay the price when things fall apart. In this case, the buyer spent an entire weekend looking at homes, thinking they were qualified. The agent showed four properties. That is time, energy, and money gone. 

Your time is valuable. Your client’s time is valuable. 

Run your business. Do not let it run you. 

Yes, I work late. Yes, I take weekend calls. I want the business, and more importantly, I want to take care of people the right way with the level of service they deserve. 

If you are looking for a lending partner who will answer the phone, do the work upfront, and stand behind every pre-approval, my team and I are here to help. 

Interest Rates

Not a great week so far, but we have had worse! Tomorrow will be better!   

Loan Programs Snapshot

• Government loans (FHA/VA/USDA): in the 5s
• Conventional (≤ $832,750): high 5’s / low 6s
• High-balance: mid 6s
• Jumbo: Low to Mid6s
• ARMs: 5s - 6s

Additional options:

• Bank statement loans (10% down+)
• P&L loans (20% down, no bank statements)
• 0% down options (620+ score)
• DSCR loans (15% down)
• Bridge loans (~7.99%)
• Buydowns (3/2/1, 2/1, 1/0)

Rates subject to change without notice. 

Condo Update

• Good news: None today
• Bad news: Diamondhead – Stevenson Ranch  –  Fannie doesn't like them right now.  I believe there are some repairs going on due to SB-326.    

We love your Non-Warrantable Condo loans!!

Need help checking a condo? Call me, and we can look it up in real time.
Also:
Full California "naughty list" available here:

https://mikemeena.com/non-warrantable-condos/ 

If you - or your clients, friends, or family - need guidance, I'm here.

📞 661-291-2222 (Direct)

📞 661-714-6258 (Cell)

📞 661-260-2970 ext. 2222 (Office)

📧 Mike@AugustaFinancial.com

Sincerely,