Preapproval Is The First Step

A Current client asked me this question after showing her a couple of condos.

"...what do you think a minimum salary should be for a place like this, because we are trying to figure out all this before we look into it more..."?

Perhaps I should have asked if she was pre-approved for a loan before showing properties, but my philosophy Preapproval Is The First Stepis not to push clients/customers up front.  I don't mind showing a few properties before we get down to the brass tacks of buying a home, but this is something every buyer needs to know before that actually start house hunting..."how much house can I afford to buy?"

There is so much more to getting a mortgage than knowing what your salary can purchase.  Time on the job, Credit, payment history, amount of debt, any bankruptcies, short sales or foreclosures in the recent past?  Even the kind of mortgage you get and interest rates depends on those factors.  I can naturally speak to some of these items, but that's really the job of a mortgage professional.  There are a very select few mortgage people that I like to use or refer my clients to because of their knowledge in the area of mortgage finance and willingness to go the extra mile for my clients.

My young client was not aware of any of this, but I've put her in contact with an outstanding loan officer who is getting her pre-approved as I write this post and the next time we go out to preview homes we'll know exactly what her "salary can buy".

Nick T Pappas

If you need a knowledgeable real estate professional in Madison or Huntsville Alabama area, why don't you let me Google that for you! I also know outstanding agents in all states and Canada should you need help relocating to a new area.


 
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8 Comments on Preapproval Is The First Step

JUN
02
898,605 Points 35 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Nick - this is a very nicely done - gently and to the point. Suggesting.
12:00pm • #1
851,028 Points 72 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Nick,  I do not considered pre-approval to be "push"y ... I require it before I show properties.  It's a good solid business practice that helps save everyone time and frustration.  It serves to avoid looking at homes a buyer cannot afford. I'm glad you connected the buyer with a lender! 
12:25pm • #2
987,852 Points 82 Featured Posts Called Shot Master

It's kind of like putting the cart before the horse if the client hasn't been pre-approved Nick, but I see your point.  As long as you don't waste a lot of time with clients who don't qualify, and I doubt that you do.
12:39pm • #3
1,361,053 Points 244 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Nick you are very correct, there is a lot more to qualifying for a mortgage than just income.  A lot of twists and turns these days in qualifying for a mortgage, so it is great that you partner up with a Loan Originator that you trust.
1:44pm • #4
498,310 Points 150 Featured Posts Outside Blog Hit Router Called Shot Master

Nick:  I understand your actions, to some degree.  Some clients can be skittish and being "pushy" just doesn't work well with them.  An experienced professional can spot them fairly easily, and act accordingly.  But in the greater majority of cases, as a mortgage lender, I would suggest that you make the pre-approval process pretty much mandatory.  Not only for your own purposes and protection, but for the client's as well.  Making sure they are viewing homes within their affordability price point is important.  Plus, with so many things that effect approval of loan .. it's just best to be safe.  Get the credit run and go through the steps of pre-approval.  Just best for all involved ...

Gene
1:47pm • #5
561,247 Points 18 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I too don't like to be pushy...so I begin by working around the subject..Oh what do you do, where do you work, how long have you been there.  Then I'm not pushy, just nosy!
2:33pm • #6
403,321 Points 8 Featured Posts Outside Blog Called Shot Master

Nick - I'm with you I try not to be too pushy in our second home market, but after looking at a few homes, I always let my buyers know if they will be getting a loan, they need to get pre-approved now, not later.
4:20pm • #7
776,216 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Toni-I just have a different way of dealing with people and it works well for me.

Kathleen-For the most part I agree with you, but don't feel showing a house or two before a buyer is preapproved is a big time waste.  Also I know that refusing to show property until a buyer is preapproved could also help you to lose a buyer that you can get preapproved down the road a bit.  I have a high conversion rate...actually it's the highest in my office and like I told Toni..."it works well for me".  

Roger-I know it's not the traditionally accepted way of doing business, but our office is not traditional and you are correct...I don't waste a lot of time with someone who won't or can't get preapproved, but I'm mindful that one day they might.

George-glad you chimed in and wish I had you to partner up with the very few mortgage originators that I deal with.  Your world changes so rapidly and you guys are on top of it...that's your job...and that's why I always defer to the mortgage professionals.

Gene-Absolutely...I don't want to waste anyone's time including my own...I've opted to tolerate a slight delay...as I said..."it works well for me".  And thanks for stopping by...please don't be a stranger.

Laura G.-I'm pretty much the same "nosey".  I find that I get the answers I need and am better equipped to help my clients.

Laura A.-exactly.  We are all consumers and don't like it when someone we don't know starts pushing papers in front of us asking us to sign stuff, etc., but there comes a time that is right and everyone will know it that "if this is what you want then this is what you have to do".  Hey I like that...sounds like a great blog post title!!!  By the way...I absolutely love Lake Tahoe...one of my favorite places on this planet.
5:00pm • #8

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