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1. The homes you look at may be over or under what you can afford, knowing what price you are approved for and also being comfortable with your payment before you go home shopping will make the process go more smoothly.
Contact me for information regarding New Homes Riverside County, Real Estate in Southwest Riverside County. My office is in Temecula, and I specialize in selling homes in the Murrieta and Temecula, Wine County, De Luz, La Cresta, Bear Creek, Murrieta, Wildomar and Menifee, Canyon Lake, Canyon Hills, Lake Elsinore areas! Anywhere in Southwest Riverside County and North San Diego County. 
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83 Comments on Home Shopping Without A Pre-Approval Is A Waste Of Time
As a loan officer I would much rather pre-approve a buyer than have to force fit a purchase loan after the contract is accepted. In todays world of lending with much tighter guidelines and restrictions, it is almost impossible to get exceptions. My agents know I am available to provide that service with just a phone call. My preferred way to work. Thanks for the reminder.
All good points you have made Jane. No prequal no looky in my book.
Great post and so true. Pre-approval is very important for people wanting to buy a home.
Excellent guide to why buyers should get preapproved before getting into a car to look for houses. Every buyer and their agents should read this.
Thanks to comment # 60 I also found this one. Hilarious!
http://youtu.be/8giYyUaP15U
If you are not preapproved, you don’t really know what you can afford. So…you find the perfect house. Then you find out that you can’t afford it. Once you are approved for a loan you are likely to find that everything you look at that is within your purchase price is not acceptable to you. Why is that? It is because you are comparing houses that you can afford to the house that you cannot afford. You have ruined your expectations!
Get preapproved before you start looking or you are likely to be sorry on more than one level.
It's amazing to see how many people won't get one until they "find the perfect house." Or how many agents jump to show them a house before they have one.
Jane:
I used to have a T-shirt that said "Buy from me or get out of my car!!!" I'm not a tour guide. It's amazing how many agents don't worry about the pre-approval until they are going to write the offer.
Jane - There are lots of great reasons to be pre-approved prior to looking at homes and you've covered most of them.
Hi Jane, great post! I'm fairly new to the Real Estate industry and I've followed this advice since day one, with little resistance from my clients (thankfully). In the one instance that a potential buyer balked at my request for pre-approval I just explained it to him like this: I told him that if I was representing him in the sale of HIS home, I definately wouldn't want to waste his time or jeopardize his family's security by allowing just anyone off the street access to his home. He said that he hadn't considered this angle and readily agreed to obtain the pre-qual letter. I'm learning fast that people seem to understand things a little better when I explain it in a way that would affect them if the tables were turned.
I always tell my buyers 3 reasons for getting pre-approved:
1. Narrows the search. We dont want to be looking at something out of their price range or even missing out on properties they could actually afford.
2. Negotiating leverage - it looks more appealing to a seller when you are "ready to go". If you are competing with another bid, yours may win even if it is lower since you are already approved.
3. Time - it saves time on the back-end of the deal because we can get through the contract once its accepted.
Can I get an "AMEN"??? Nice post... some buyers just want to "see what's out there" first, but there is no harm done by just chatting with a lender first. Thanks for the nice post, Jane!
Selling real estate would feel like heaven if evey buyer got this and cooperated with your recommendation!
Thanks again for all of the links, advice, and nice comments...I will visit everyone's post, (I am overwhelmed this week) and can't answer each comment, BUT I REALLY DO APPRECIATE THEM ALL!
All good points, although 1, 4 & 5 would be good enough!
Jane, you and I are on the same page!
I recently had a buyer call to see one of my listings. I asked if he had spoken to a lender and had pre-approval. He said, no, but he wouldn't have any trouble getting a loan. I explained why it was necessary. He then became "smart" with me and said "well, if you don't want to show me the house, fine." I explained that wasn't the case, I would show it, but he really needed to arrange for a pre-approval soon. He called back 15 mins. later and canceled the showing because he was "offended" that I questioned him about pre-approval. He said no other agent he called had done that. I replied with basically the same question you posed at the beginning of your blog article. He said he would want his house shown to every possible buyer. Yeah, right! Well if they can't get a loan...then they are not a buyer.
Love this one! Do buyers understand that we are not on salary?
Great points Jane! There is nothing worse than wasting everyone's time and the heartbreak that can come when a buyer gets emotionally attached to a home that they can not afford!
Jane I completely agree! I would never show a home without a preapproval. Our time is way to precious for that.
Jane I'll go out with a buyer once, maybe twice while I'm waiting for a pre-approval letter but never more than that.
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