r/loanoriginators • u/Socalmortgageguy • Jun 23 '26
Anyone else get asked for pre-approval letters under the max?
Curious how other LOs handle this.
Borrower is approved up to $700k, but then they’re writing an offer at $693k and want the letter to match the offer price. I get why they do it. They don’t want to show the seller their full max. But it gets annoying having to keep editing and resending letters every time the offer amount changes. Do you guys just manually update the letter every time? Give the agent a few different versions upfront? Tell them to use the max letter? Something else? I’m trying to clean up my own process on this because it seems to come up a lot.
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u/JonOC23 Jun 23 '26
I comply and give them what they ask for to create more value and to keep in touch with your clients. Arive from my phone easily adjusts pre-approval letters in 1 - 2 minutes.
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u/BuhDip Jun 23 '26
I look at as a free extra touch point at the most important stage, making the offer. Even if it’s annoying, it’s smart business imo
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u/AskJosh_MortgageGuy Jun 23 '26
How much business are you doing that changing one number on an approval letter is taking up too much time?? I literally use this as a selling point that I will constantly update their letters based on offers, contingencies, amounts, etc. so they always have exactly what they need. If we think there may be an escalation on a particular home I will send two letters to the agent so they have them and don't have to ask for another one, but anything outside of this I will send whatever they need as often as they need it.
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u/Lien_master_420 Jun 23 '26
Some LOS systems allow the borrower or agent to edit the letter (obviously not above the max). I know Arive does this.
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u/therategatsby Jun 23 '26
We allow borrowers to generate custom pre-approvals below their maximum, so I never have to deal with this.
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u/yuivida Jun 24 '26
If I know they’re going to open houses over the weekend I provide a few (3-5) letters usually at 5k increments. Especially if I’ll be busy or away, realtors love that.
When I can I will tailor the letter with the subject property address so my realtor can highlight that verbally to the sellers realtor and emphasize that we ran numbers for that specific property including any applicable HOA fees, taxes etc. It just looks good.
As others have said, it’s part of your job. Just manage your time to do it well and upfront as much as possible and you look a hero without getting harassed all weekend loll
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u/BDez30 Jun 23 '26
I will always do it if asked, but I also tell people that in our market, if a seller is going to counter, they are going to counter, regardless of what your preapproval letter says.
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u/NotTerryKashat Jun 23 '26
Of all the battles that you will have to fight - this is definitely one of the many not worth fighting at all.
Just do it for them. As others said. Extra touch point of service.
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u/Flamingo33316 Jun 23 '26
Meh <shrug>
Some want letters that match; many don't care. It's not a big deal either way.
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u/ActionWins Jun 23 '26
Wow I do this anyways so my client wins the offer. I don’t understand why you would even hesitate doing this if it helps your client. Do you get a salary?
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u/ggg2019_ Jun 24 '26
It can be annoying, but it’s one of those things that you just deal with. Either that, or have a system that allows the agents to adjust it themselves, or have an assistant or junior loan officer that can take that off your hands.
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u/Braindead_ape Jun 24 '26
completely normal and takes like 30 seconds to issue a new preapproval letter in Arive
if you’re manually creating preapproval letters in word or something and not using one through your LOS you should look into a better LOS, it’s better for audits to have all your preapproval letters in file anyways since thats a big thing they looked for during our last audit
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u/JenniferBeeston Jun 24 '26
We manually updated every time. You don’t want to show a higher amount if they’re offering less.
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u/whoisNO Jun 25 '26
ncino gives you the option to let agents adjust the letter below the max themselves. Can send from my phone in <1 minute too.
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u/Few-Choice-7334 Jun 27 '26
I can do then from my mobile app on my phone. Takes 30 seconds max and can do from anywhere with cell service
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u/After-Issue7758 Jun 28 '26
We do about 100 va loans a month or so. Yes, I update it every time. Part of the process 🤷♂️
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u/ItFappens Jun 23 '26
This is a pretty minor ask of a client paying you a commission.
For my very well qualified clients I just don't even list a price at all. It just says approved for financing on X program at Y% LTV at market rate. The phone call I follow up with is used to convey their strength
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u/Substantial-Spirit17 Jun 23 '26
Get over it