The Real Estate Network
Getting pre-approved involves a bit more than divulging your name, address and social security number. When it comes to the business of residential real estate transactions, it takes a network of professionals working together to get from the ‘drive by' stage - as in "we just want to drive by this house we read about" - to the closing table. Many people outside the business have the impression that realtors earn big commissions by "just driving people around." Because a professional agent acts as a liaison between his or her client and many other service providers in the transaction, the intricacies of the process are often not fully realized by the parties to the contract. Surveyors, title researchers, loan closers, and the many people involved in the application, review, approval and finalization of the mortgage loan often use the 
realtor as their point of contact, rather than the buyer or seller. This interdependence of professionals upon one another creates the controlled chaos that culminates in a quiet conference room; papers signed, keys handed over, buyer and seller satisfied with the end result.
But before buyers can even make an offer on a home, and long before surveyors, title searchers or home inspectors are called upon to do their part in a transaction, buyers must know where they stand financially. That is why the relationship between the buyer's agent and an experienced, reputable mortgage lender is of utmost importance. This team of two puts the ball in play, so to speak. The realtor's confidence in the mortgage professional that he or she works with regularly should, ideally, transfer to the buyers. Buyers must have the level of comfort required to trust that their best interests are being served in choosing the most suitable type of loan for their particular needs. The agent should be able to rely on the mortgage professional to address any lending challenges or potential obstacles with the borrowers, such as a prior bankruptcy or recent changes in the buyer's income or employment situation. Having your buyers pre-qualified gives them realistic boundaries for house hunting, reduces their stress and saves an agent from wasting precious time showing buyers homes that are not in their price range. Pre-qualification of buyers carries weight with sellers, as well, and legitimizes the buyer's offer. It shows that the buyers are ready, willing, and able!
Smart real estate professionals know the importance of the relationships that are the life's blood of their business and will carefully develop alliances with the most reliable associates. Successful realtors, however, know that if there is no loan, there is no sale.
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