Why Do I need to be Pre-Approved before you start showing me homes?

By
Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/4sr

Why Do I need to be Pre-Approved before you start showing me homes?

There are many first time buyers out there who have asked me this question. I constantly have to educate them about this question. My answer is very clear to the buyers:

•1.       The issue is I want them to be sure, that they are in a position to 'buy' the particular home they found and like.

•2.       I want to be sure that they are searching in the price point they can actually buy.

•3.       I do not want them to miss out on a home they loved, but were unable to get because they did not have the Pre-Approval Letter to submit with their offer.

•4.       Then my own selfish reason:  I do not want to waste my time and gas with lookers who cannot qualify to buy anything due to bad credit or the bank's more restrictive underwriting rules.

•5.       Sellers and their agents do not want to accept offers from potential buyers who are not in a position to buy; hence they might miss out on a Ready & Able buyer. They will not accept an offer without Pre-Approval from a reputable lending institution.

These are the most pertinent reasons why I expect a pre-approval letter from a buyer. If they do not have this, I always encourage them to do this and if they need a reputable lender I refer them to one.

 In the mean time I set up a search program in the Multiple Listing Service a bit higher and a bit lower in what they think is their price point; hence they can get a feel for what the market is like. How is the inventory? What they can get for the various price ranges as well as the difference between certain neighborhoods? Ultimately once the Pre-Approval is done they are better educated on the inventory and when a property comes in their price & liking we can see it and submit a solid & strong offer.

If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations

 

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Arleen Montford 01/26/2011 01:19 AM
  2. Arleen Montford 01/26/2011 01:19 AM
  3. Elyse Berman, PA 01/28/2011 01:47 PM
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Rainmaker
137,477
Alexsandra Stewart
Remax equity group - Portland, OR
Broker - Portland Oregon Real Estate

Endre - good post.  It's a question that gets asked all the time by buyers -- and all the points are valid for them to pay attention to.

Jan 25, 2011 02:56 PM #1
Ambassador
1,241,512
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTORĀ®

So that you don't fall absolutely head over heels in love with something outside of yoru price range and then NOTHING else will compare! 0:O)

Jan 25, 2011 04:22 PM #2
Rainmaker
601,332
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Endre - Very well laid out and explained!  It just amazes me the prospective buyers that still don't "get it".

Jan 25, 2011 04:29 PM #3
Rainmaker
3,222,132
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Alexsandra, thank you for contributing to the post, hope you are well and to your success in 2011:))

Jan 25, 2011 05:57 PM #4
Rainmaker
3,222,132
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Joni, well said, I hate it when the budget blows out the desirability:))

Jan 25, 2011 05:58 PM #5
Rainmaker
3,222,132
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Donne, unfortunately new buyers are not at the place we are, hence we have to constantly be vigilant and re-explain the same important message.

Jan 25, 2011 05:59 PM #6
Rainmaker
128,890
Craig Snead
Quality Home Investments, LLC / Dearborn Heights, MI - Dearborn Heights, MI
Real Estate Investor

Endre, first time home buyers need to know that there is a BIG difference between "pre-qualified" and "pre-approved"

Jan 26, 2011 01:46 AM #7
Rainmaker
3,222,132
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Craig, thank you for adding to the conversation, you are absolutely correct about the 'need' and 'the difference'

Jan 26, 2011 05:39 AM #8
Rainmaker
873,955
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR

Endre,  This is a good post outlining point by point for consumers.  Definitely worth a reblog!

Jan 28, 2011 01:44 PM #9
Rainmaker
254,422
Pam Jank
Coldwell Banker Schneidmiller Realty - Coeur d'Alene, ID
Your Coeur d'Alene & North Idaho Real Estate Pro

Craig, Great post!   I always request my Buyers get their Pre-Qualification Letter first.  Your Top 4 reasons are ones I give.   The main reason I give.... I don't want to take them out and show them properties they may not actually end up qualifying for. I.e., we look at $200K homes and then find out they can't purchase over $170K.  Now there won't be a $170K home that will make them happy because they fell in love with amenities and locations of the $200K ones....

Jan 30, 2011 04:25 PM #10
Rainmaker
3,222,132
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Pam, Thanks for stoping by, great points to the discussion.

Jan 30, 2011 05:46 PM #11
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Rainmaker
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Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
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