CheckWhy We Want You to Get A Preapproval Letter BEFORE You Start Looking For Homes!

You might be of the mindset that you want to find that dream home before you start checking out getting a loan.  We understand, you've heard the stories about credit scores dropping from getting checked, and "Hey, MY credit is totally great!  I'm GOLDEN!  I've never missed a payment on anything!"

But here's the thing, we'd be doing you a serious disservice if we DIDN'T recommend you get with a loan officer as early as possible in the process.  Why you ask?

Glad you're interested in knowing!

  • Loan standards and programs are constantly changing!  A good loan office can review your situation and determine the best program for you!  And if there's something in your credit history that might put a crimp in your ability to buy, well they can tell you what you need to do to fix it!
  • Do you want to be taken seriously by the sellers?  When you find that perfect home, chances are they're going to want to have a preapproval letter attached to your offer!  They NEED to know you've demonstrated at least the minimal ability to get the cash!  Put their hat on, would you feel comfortable taking your home off the market because someone said "TRUST ME!  I'm good for it?".  Trust us, we'd be advising our sellers to leave the home ACTIVE until you and your agent got us the letter!
  • We need to know the type program you'll be using for financing so we know how to prepare the offer.  A week or two AFTER the contract is accepted is a little late to realize you need closing cost assistance!  If we know what you need, we can build it into the original offer.  Sellers HATE surprises like that later!
  • And lastly, this one is mainly for us!  We don't want to be the bad guys.  You think you can buy a home at $xxxxxxx price.  We show you homes at $xxxxxxx price.  You and your family find THE ONE, THE DREAM HOME.  And THEN you find out you can't afford to buy it.  Just a bit beyond what you can get a loan for.  You're crushed, and it's OUR fault for letting you in the home to start with when WE didn't know if you were actually qualified to buy it.

So can you see WHY we feel it's critical to get that preapproval letter first?  It REALLY is in YOUR best interest.  Don't know a great loan officer?  We can help find one for you!  Just give us a call or email and we'll be happy to get the process started for you!

Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz

REALTORS(S) Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of RE/MAX Elite
Elizabeth & William Spear
Ask for us by name if you visit the office!
EHO Two locations: Lebanon & Mason, OH
Liz direct:  513-265-3004
Bill direct: 513-520-5305     
Fax: 866-302-8418
MailTo:  LizSpear@Go-Concepts.com
Our Website:  www.LizTour.com

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95 Comments on Why We Want You to Get A Preapproval Letter BEFORE You Start Looking For Homes!

20 Most Recent Comments Displayed Show All

JUL
31
2011

Most of the time buyers have no clue what to expect. I do get out with them once and show them couple houses just to give them idea, but emphasizes on importance of approval before we continue showings ...
11:08pm • #76
201,522 Points 7 Featured Posts Attended Rain Camp Called Shot Master

Great Post on Prequalification, where else would anyone go shopping expecting to buy something without the money in hand, that is what it is to not be prequalified.  Thanks for the Post.
11:59pm • #77
AUG
01
2011
265,357 Points 3 Featured Posts Outside Blog Attended Rain Camp

I went have gone out recently with new clients who have not yet been approved for a loan. The told that qualifying for the price range of the houses we saw would be no problem. Famous last words! I told them that I really enjoyed our meeting. I told them that, before we meet again, their assignment is to get a solid loan approval. We shall see…
12:00am • #78
344,247 Points 14 Featured Posts Outside Blog Called Shot Master

Dear Bill and Liz -

Another of your stellar posts!  Thanks -
I certainly agree with Stacey Smith (#73) - the last thing I like to hear is "Darn, you were right!" as we watch their "dream home ... slip right between their fingers".
And with Margaret Woda (#53) about safety issues - an unfortunate but important consideration!

Have a happy day,
Lynn
12:18am • #79
2 Featured Posts Outside Blog

We are all in agreement that a preapproval is os essential. Do our buyers know that? It's amazing how some buyers could actually afford to spend more if they did this simple homework first. I am with you. on this matter.
5:28am • #80
1,053,614 Points 286 Featured Posts Outside Blog Called Shot Master

Stacey, In that situation without the letter, almost the same as not even submitting an offer. 

Rodney, There can be quite a few surprises out there with what they think they can do and what the loan regs actually allow them to do.  Best to get the surprises out of the way early.

Kymberly, Thanks!  We'll do a first trip out without it, but after that the buyer needs to be getting with a mortgage pro.

Olivera, Same here, although depending on the buyer situation we'll try to get them to the mortgage pro first.

Mary, Good point!  Just need to take care of business early on!

John, Hopefully they take care of it quickly and get back to home shopping with you!

Lynn, Fortunately most of our buyers come via lead sources that tend to not have us be concerned about their intent, but most of our blogging/mailings are directed at sellers.

Sherry, We tend to have the opposite, people want to look higher than they can afford.  Either way, good to know your options up front.
6:19am • #81
356,310 Points 5 Featured Posts

Excellent advice and honestly, when a potential buyer talks to a lender it moves them from the "might, maybe" category to the "serious, ready, willing and able" category. because it is a buyers market, it makes it mmore important than ever to show a seller that you fit into the "serious, ready, willing and able" category.
8:06am • #82
1,053,614 Points 286 Featured Posts Outside Blog Called Shot Master

Mark, It's definitely the differentiator between a tire kicker and a serious buyer.
8:31am • #83
237,509 Points 6 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Bliz, thanks for this great post!  I wish buyers understood that that shopping around for a mortgage (within a finite period) does NOT ding your credit score.  FICO knows that smart shoppers want to shop around for the best rates on things like homes and cars; that's why FICO ignores all mortgage and auto-related credit inquiries made in the previous 30 days.  Now inquiries from credit cards and department stores is a whole other ballgame - don't do it!!!
1:34pm • #84
1,053,614 Points 286 Featured Posts Outside Blog Called Shot Master

Melissa, Exactly!  Go shop hard for a bit, find the best fit and then get your REALTOR team in high gear finding that perfect home :)
1:51pm • #85
594,098 Points 22 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Liz and Bill:  You're welcome on the re-blog!!!!   Great post that I hope more people will read!   I told a client today that I needed their pre-approval before we went out!
11:05pm • #86
1,053,614 Points 286 Featured Posts Outside Blog Called Shot Master

Jane, Hope they agreed that they should get it first! :)
11:10pm • #87
AUG
02
2011

Awesome post!  It is really hard to write an offer without an idea of financing.  I like to talk with their lender to get questions about closing cost assistance, time needed to close the loan, etc done before we are writing the offer.  
12:59am • #88
517,593 Points Outside Blog Called Shot Master

Any of us who have been in the business any length of time has been burned when they did not get preapproval on a home 1st.
1:44am • #89
1,053,614 Points 286 Featured Posts Outside Blog Called Shot Master

Liz, Same here whenever possible.  No point in writing an offer with terms that can't be met, and knowing how long to close is critical.

Mark, It's a lesson learned that hopefully none of us repeat.
6:15am • #90
186,039 Points

Well stated. I'll be re-blogging this one. It's news all buyers could use.
4:47pm • #91
1,053,614 Points 286 Featured Posts Outside Blog Called Shot Master

Suzanne, Thanks!  Glad you could use it!
5:03pm • #92
AUG
27
2011
556,002 Points 31 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Liz and Bill,

Looks like you got a few comments on this one.

Good idea to get preapproved. Good for all parties.

Phil
12:55pm • #93
412,779 Points 16 Featured Posts Outside Blog Called Shot Master

Absolutely 100% true!  Buyers should also keep in touch with their loan officer.  Depending on how long they take to find a home, the program can change.  It has happened, and I am sure it will happen again.
12:56pm • #94
1,053,614 Points 286 Featured Posts Outside Blog Called Shot Master

Phil, It was Featured, so picked up a ton of comments on this one :)

Kathy, We haven't had that happen yet, but could easily see how it would be likely if they didn't find something quickly that suited them.
1:59pm • #95

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Liz and Bill Spear RE/MAX Elite Warren County Ohio: Cincinnati to Dayton

Liz and Bill Spear

Mason, OH

More about me…

513.265.3004 www.LizTour.com

Address: 5720 Gateway Blvd, Suite 203, Mason, OH, 45040

Cell Phone: (513) 265-3004

Email Me

REALTORS(R) serving Warren County Ohio and surrounding areas. Observing and reporting on real estate and related topics to help your quality of life! And if you're asking where is Warren County Ohio? We fill the space between Cincinnati and Dayton. Perfect for enjoying the bigger cities without living in them. Places like Mason, Lebanon, Springboro, Waynesville, Franklin and more. Plus lots of rural properties available too. We work with both residential homes buyers and sellers.


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