Ring...ring...ring.....
Hello, this is Mr. Real Estate Agent, how can I help you?
The caller responds, "Hi, my name is Mr. Smith and I like the home you have listed for sale at...123 Main Street, Temecula, Ca. I was wondering if I could come take a look at this home?"
Agent: Great! Can I ask if you're working with an agent already?
Mr. Smith: No, I am not working with an agent.
Agent: I would be happy to show you my listing, what time works best for you?
Mr. Smith: How about tomorrow at 3 pm? Is it alright if I bring my family along?
Agent: Absolutely! I'm looking forward to meeting you and your family.
If you notice in the dialogue above the agent was so consumed with the possibility of double ending this deal that he didn't ask if Mr. Smith was qualified or approved to buy this home. I like to call this putting the cart before the horse. This can be a huge waste of time and disappointment for everyone involved. Think about it. Mr. Smith and his family are going to view this home and they are going to fall in love with it. By the end of the initial walk through Mrs. Smith already knows where all the furniture will go and which rooms to assign to the children. Mr. Smith has the garage laid out and can't wait to start grilling some steaks in the backyard. The children have their eyes on the pool and are chomping at the bit to jump in. This family is already emotionally attached to the home. The only problem is, this home is priced out of their reach, they qualify for a loan $50,000 less than this home.
I have seen this time and time again and I cannot understand why agents would show homes to a prospective buyer that isn't approved for a home loan. I'm not talking about a pre-qualification, but an actual approval. One in which the prospective buyer's financial and credit profile has been examined by a true mortgage/loan professional. I remember some years ago the pre-qualified letters that were floating around. They were simply a dressed up word document on the company's letterhead stating the buyer has been pre-qualified for a purchase of X amount. I have all of my client's qualify or cross qualify with a lender that knows the mortgage business and is up to date on the changes that seem to take place weekly in the mortgage/lending industry.
Making sure you are approved for a home before you go shopping will ensure you're shopping in the right price point. If you're approved for a home loan at $250,000 but you're looking at homes in the $350,000 price point, of course you're going to set yourself up to disappointment. That extra $100,000 buys a lot more home. Save yourself the heart ache and do things the right way....make sure the cart is in front of the horse.
If you're in the market to buy or sell, call me first. I'm in the process of launching my HUGE INCENTIVES PROGRAM for both sellers and buyers. Of course if you're looking for advice on how to avoid foreclosure and want results, I should be your first and last call!
This is Ryan Smith signing off, until next time!
Be sure to watch some informative videos featuring Ryan Smith, co-founder of The Short Sale Minute (http://www.theshortsaleminute.com)
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