Frequently Asked Question: Why do I need a pre-approval before seeing homes?
We get many phone calls from customers who want to see a home. Many of these people have no relationship with any agent and do not understand the main line real estate process for buying a home. They just want to see a house they saw that they liked and so they often call the first number they can find.
Our job is not to just show houses. Our time is limited, and therefore we ask those we are going to work with to obtain a mortgage pre-approval for several reasons. Yes, it is so we can make the best use of our time for our clients and customers. If we ran out to show every person who called whatever home they wanted to see we would not have enought time to do our job efficiently and correctly.
As I explained in a recent post we get paid for successfully guiding a client through the process of a purchase. This may include helping them find a mortgage provider, getting approved for a mortgage, improving their credit scores, advising them on local neighborhoods in light of their lifestyle choices, advising them on the pros and cons of homes they see, helping them understand the pricing for a specific home, crafting an agreement to give it the greatest chance of success especially when in a multiple offer situation, then negotiating the offer, inspections and possibly an appraisal as well, providing lists of inspectors, contractors etc. when needed, then keeping the whole transaction on track by following up with all these different people to make sure everyone is doing their job correctly and in time. We only get paid when our client actually reaches the settlement table and closes on the house.
So, we ask customers to take the time to get pre-approved for a couple of other reasons as well. We have had clients in the past who did not and on their first tour of homes saw the home they loved, but by the time they got hold of a mortgage provider who sent over a pre-approval the home had gone under contract. Sounds hard to believe, but when it happens it is devastating for all involved.
Likewise, we have had clients who have told us they know they can afford a certain price point, only to discover later that the homes we have spent weeks visiting are out of their price range, because of some credit issue.
So, we prefer customers and clients obtain a mortgage pre-approval first so they have the ability to act quickly and not waste their time looking at homes which are too highly priced and which leads to dissatisfaction with correctly priced homes they look at later.
It takes only a little time and usually can be done over the phone to obtain a mortgage pre-approval. We are happy to provide a list of local mortgage providers we know who can be relied upon to provide good rates and with low fees. So, if you are interested in buying a main line home let's talk and connect you with those who can help you achieve your goal.
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