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Are your buyers really Pre-Approved?

By Shawn Kellerbauer

Real Estate Agent with The Danberry Co.,

August 06, 2006 02:44 PM

Please review your buyers pre-approval letter to avoid leading them to homes that are not really qualified to purchase. If the only documentation they have from there lender says one of the following sentences please do not continue to show your buyers anymore properties: 1. Based on current income 2. Review of W-2's. There are several other items to list but why waste anymore time. As I am writeing this new blog entry this may be my calling to educate new REALTORS on not how to play the game. As time passes you will be given a referal or two and the buyers who will let you know they are pre-approved? They think there pre-approved! Our job is to educate them on what the actual letter says. We must read between the lines before we take on these new buyers to any homes. My point is if you don't take the time in the begining you will not be going to a closing anytime soon.

You may also find out your buyer may be told to look for a house in a certain price range and may really not qualified to be looking at homes they feel will fit there family needs. Example they are looking for homes in the $200,00 dollar price range. After you secure accepted offer with signatures the lender says they should be looking for homes in the $100,000 price range. Wow! can they do that? Yes the same lender within two weeks of working with my buyer informs him he is now not qualified to be looking for homes he was originaly told he was qualified to purchase or technical terms "approved" to look at.

Stop! Drop! Phone! Call the lender call the Police! Call on God because this lender has just informed there client they can start looking for a new home. NOT TRUE! They have not truley been pre-approved the have a letter that basically says they met with a lender, sorta like a certificate you get when you take a CE Class-"You were there"

Please enter your personal experience as I will be adding additional information about this subject.

Sincerely,

Shawn Kellerbauer

419-699-7005

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Pam Hofmann

Third Tennessee Realty & Associates, LLC - Crossville, TN

Your Crossville, Lake Tansi & Fairfield Glade Specialist

I have found there are pre-screened, pre-qualified, pre=approved, and pre...whatever. I am very careful and always speak with the lending agent personally to find out exactly what their company means by pre-whatever and then show homes accordingly. Be very,very,very careful!!

Aug 07, 2006 07:01 AM

Ken & Mary Deshaies

SnowHome Properties - Breckenridge, CO

Shawn, I only work with lenders who can pre-approve my buyers. There IS a difference.

Aug 07, 2006 05:03 PM

Anonymous

stiffed by Shawn's buyer

This is toooooo funny. Shawn brought one of his clients to see my house and they put in a purchase offer, the offer had written on it that the buyer was preapproved. For some reason five days later we found out it was all bogus, the guy couldn't evan get a mortgage. I guess Shawn doesn't really know if his buyers are preapproved.

Jul 17, 2008 07:10 AM

Welcome to the Game:)

Goes to show you the only thing guaranteed in life is death & tax's. Even when sub prime lenders went through a big overhaul there where deals set to close within hours and days. How was the buyer supposed to see that one coming or myself as an agent. You have to have a great attitude to be a Realtor as well as able to take some sh.. from anyone who wants to throw it. TMZ is the best!

Well if your house was price better it would have been SOLD buy now so good luck with life and keep paying your tax's and insurance. Buy the way winter is coming so I would lower the price today and keep the grass cut as you want strong curb appeal & avoid paying big heating bill again, also ask your Realtor to only bring you only Cash buyers because if you home doesn't appraise properly you will have to blame another REALTOR again. Also have your home pre-inspected as well as have a recent appraisal left out for the buyer to view. One last tip you may want to sell it yourself that way you can assure nothing could possible go wrong and you could qualify the buyers yourself:) lol-This would be your sure way out if you can afford to quit your day job. This way you you will surely get your asking price and you won't have to negotiate on price or buy any more tissues...

Joke for you- I would like to compliment you on the 1/2 bath, do you call it a 1/2 bath because you only fit halfway on the toilet? Try turning it back into the pantry it was .

By the way I did inform both the buyer and the listing agent that I was concerned about funding because Country Wide was the lender. Imagine that letting the Real Estate agent know upfront that I was concerned the lender was setting my buyers up for failure. I also let the buyer know there only a 50% chance this deal would happen. Why did the seller look at the DEAL? Because there where NO OTHER OFFERS! ( Real tough call...) When I get more time I may post the actual email from the lender as well as a contact name for the lender in case you decide to keep blaming people for your situation. I have a thought - we need more homeless sheltors and you could propable use the tax write off..... lol Gotta Go sell more home gotta love those investors who have CASH$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Jul 18, 2008 01:42 AM