Real Estate Website Loan Preapproval Form
Posted by on Wednesday, October 8th, 2008 at 4:14pm."Fill out this form and we will get you pre-approved with a top local lender."
I have seen this option on multiple real estate websites, even on the most respected agent sites. Should you fill out a loan application on a real estate website? My opinion however, is NO! Real estate agents offer a plethora of information on their sites. You can find community and neighborhood information, search for property, even advice for buying and selling property. Sure, the only combination missing for a complete transaction is the Loan Process. It’s convenient to have a preapproval form available, making that website a one-stop place to real estate shop…in the convenience of your very own living room.
With today’s sensitive information being so freely dispersed, and identity theft on the rise, why would any agent want this responsibility? Use caution with individuals, or online venues, in which you are volunteering your personal information. A real estate agent should be able to provide you with a name and phone number (along with recommendations) of a few Loan Agents so that you can make a selection. Of course, agents do need to be privileged to some information, such as your approximate income and general debt to income standings. This will allow them to determine a starting point on price range, also they may be able to alert the client to potential loan qualifying problems.
Personally, I will not even give my personal information to an individual who calls me and says "You have filled out a form and now I’d like to get you preapproved for a home loan, can I have your social security number?" No way! I’d like the main phone number to the establishment in which that agent represents. Then I’ll do an Internet search on that particular individuals name and/or institution to see if there is any obvious information that will assist me in making a decision. I will be the person to initiate the call, before offering up my personal information.
Consumers must be sure they are speaking to who they believe is on the other end of the line…phone or Internet. Do not give your personal information out to anyone that does not need it. A real estate agent does NOT need your social security number. If they require preapproval to show you property, fine, they should also be able to take you over to a reputable financial institution to do this. Better yet, call your own banking institution and get your own preapproval prior to contacting an agent. Your own financial institution can provide you with approved terms and a good faith estimate of fees and costs. You can always shop around later for a better rate or terms, but at least you know your information is secure and you are better informed as a buyer to shop for a home.
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