Too Many Pre-Approvals? Here's What to Work First | Loan Officer Leadership
Episode 510 · Loan Officer Leadership Podcast

Too Many Pre-Approvals? Here's What to Work First.

When completed applications pile up, every file feels equally urgent. They are not. Steve Kyles shares the Red, Yellow, Green framework for putting files in the right order so the ones closest to the money get your attention first, and nobody feels neglected.

This episode came from a great question from Mako Morales, a loan officer in our coaching community. He said: Steve, I'm getting busier. We're doing the right activity, making offers. I have something like 20 people I've had to get pre-approved this week. How do I get through all of them?

That is the right kind of problem to have. But the challenge is real. When you have that many completed applications coming in, the natural instinct is to open the inbox and start from whatever came in most recently. Whatever came in first, in whatever order, gets the attention first. That is the wrong way to do it.

Your notifications do not determine your priority list. Your process does. Not all completed applications are created equal. All leads are treated equal. Speed to the lead, great first call, same every time. But once the application is completed, the files have to be sorted.

The Red, Yellow, Green Framework

Picture a stoplight. Green means go fast. Yellow means slow down. Red means not ready. Here is how each one works and what timing looks like for each.

Green
Go Fast
Same day, within 24 hours
Strong credit (700+), documented assets, W2, stable job history, clean debt-to-income. These are your money files. Most likely to move fast, go under contract, and close. First attention goes here every time.
Yellow
Slow Down
48 to 72 hours
Credit 580 to 699, self-employed income, variable income, tight reserves, recent credit issues, or high debt-to-income ratios. The file should qualify, but needs verification and a plan before going under contract.
Red
Mortgage Ready Plan
3 to 5 days, Friday consultation
Credit under 580, no assets, unstable income, active collections, recent foreclosure or bankruptcy. Not a no, just not now. Gets a mortgage ready consultation on Friday with a clear 6 to 12 month action plan.

Nobody Feels Neglected

The key is that every client gets the same attention, care, and communication. They just do not get the same speed. You still honor the loan consultation you scheduled. You still call the agent every time you talk to the lead. The difference is what you say on that call.

For a yellow file, you jump on the scheduled consultation and walk them through what you are seeing. You tell them honestly: there is some complexity here, my team and I are going to need another 48 hours to make sure that when you go under contract it is not going to create a problem. Then you reschedule, call the agent, and let them know the same thing.

"It's not no, it's just not now. And what I'd like to do is my team and I go through everything and build you a clear mortgage plan so that in the next 6 to 12 months we can help you get into a home."

For a red file, you still jump on the scheduled call. You acknowledge the credit score, the situation, whatever it is, and you reframe it. Some lenders take weeks to get answers. My team and I are going to work through all of the information. Then you reschedule the loan consultation for Friday, where you deliver the mortgage ready plan, and you call the agent with the same update.

Touch the Lead, Touch the Partner

Every time you contact the client, you contact the referring agent. Steve calls this TTL, TTP. Touch the lead, touch the partner. For a green file, it is a high five call. For a yellow, it is an honest update on timing. For a red, it is a not-now framing with a clear plan in place.

What this does for the agent is build the kind of trust that converts a one-time referral into a long-term relationship. They are not getting a vague "we're working on it." They are getting specific information, a specific timeline, and a loan officer who clearly has a process.

It's not about more time. It's about becoming more effective with the time you already have. The right activity in the right order. Green first, yellow second, red third. Your process drives the speed. Not your inbox.

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