I Want To Buy A Home, Why Must I See A Lender First

Real Estate Agent with Jeff Fritzson Real Estate, Ebby Halliday Realtors 0629874

Frisco Texas Real Estate, as well as most anywhere else is an interesting conundrum. When people want to buy a home, most people think you should first talk to a Realtor®, which I think is a good idea. However, most professional agents are going to ask you if you have been pre-approved. We are going to push you to speak to a lender and we will recommend one or more.

Get a Recommendation From Your Realtor

You may want to use your own or work with a lender recommended by the agent.  You may want to consider this recommendation as the agent's job is to help you close on the home you want to buy. Preferred lenders have shown that they get the job done, they get it done well and most importantly they get it done on time.

Set Your Budget

I still hear customers saying, "I know I can get approved, why do I need to see a lender before I find the home I want?" Quick what is the first thing you think about when buying a home? That's right—how much does it cost. How will you or your agent know you are being shown the right homes if you do not know what you can afford?

Professional Realtors do not make any money unless the transaction closes. If we waste your time and ours showing you homes you cannot afford, you will get upset. When you see something in a home and you fall in love with that feature and then find out you can't get it in homes you can afford, who are you going to blame? That's right me. Let's get off on the right track and show you homes that make sense financially, physically and emotionally.

Make a Stronger Offer

What is the first thing a seller is going to ask about your offer? Can they  get the funding. If you can't get funding you can't close. Nothing changes if you can't close. You do not get your home and the seller cannot sell their home. Again, what happens if we submit an offer without a pre-approval letter? Most likely a good selling agent will show your offer but also recommend nothing on your offer until they see that you have some chance of funding.

The next time you start to look for a home do yourself a favor—get pre-approved. This sets your budget for you to properly search fo your next home. It also allows your agent to present a stronger offer to secure your next home. When you decide that Frisco or anywhere in the DFW Metroplex is the location for your next home, come see me. I will recommend lenders and more importantly you will find out what my other clients have found out—Your Success is My Focus.


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Most of realtors prefer buyer has been preapproved. It is very simple. Without the preapproved amount showing homes more pricey is not productive. Sam Shueh Keller Williams Realty Cupertino, No California
May 07, 2014 12:34 PM #16
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher
, I bet a lot of people wish they were moneybags and they could just throw around cash at any little thing they wanted without the need of a bank, but sometimes life is just easier when you incorporate people who know these things inside and out. Totally spot on! Love and light, Laura
May 07, 2014 01:27 PM #17
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Jeff. The lender piece is crucial to the process, if a mortgage will be needed. In many cases, this is the time for the reality check to make sure that the folks can buy now and will end up with an affordable mortgage payment.

May 07, 2014 06:58 PM #18
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Jeff... great post. And I'm still always amazed how much we have to keep repeating this message. I tell buyers I will show them 3 houses before they get approved, but no more until we know exactly what they qualify for (or even that they do!).

May 07, 2014 08:59 PM #19
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

If a client isn't pre-approved and they find the home they love, they could lose out - because they need a copy of the pre-approval to accompany the offer, so no pre-approval, no offer.

May 07, 2014 09:33 PM #20
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I couldn't agree more.  This is the first step in the home buying process.  Period.  Thanks for sharing what all buyers should read. 

May 07, 2014 09:38 PM #21
Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

I love it when an agent shows one of my listings without having the buyer talk to a lender first. 9/10 times said "buyer" couldn't purchase a pack of gum on credit.

Serious buyers understand the need to pre-approve. Serious agents should as well. Go "establish rapport" in another agent's listing...

May 07, 2014 10:19 PM #22
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jeff, excellent points why a pre-approval letter is a must when wishing to purchase a home.

May 07, 2014 10:19 PM #23
Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

Pre-approved is a beautiful thing. Knowing you can have the Taj Ma Hal if you like it Mr and Mrs, Ms, Miss Buyer is a good feeling. Not so much fun when you fall in love and nope. Forget that romance with these sticks and bricks because the bank puts the kabosh on the court and spark. A little virus in your debt ratios, a ding or dent or 10 foot pole mark or two on your credit score takes its toll.

May 07, 2014 10:31 PM #24
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

What most buyers don't understand is that we are not questionning their "ability" to get pre-approved.  We want to make sure that we are showing them homes that are in the budget of what the buyer wants to pay.  There is no point in showing homes that are out of reach from a comfort level of the buyer.  It is better to discuss options with a lender to determine the best terms and the amount of down payment and closing costs needed.  Then a buyer can decide how much they want to spend based on how much they want to pay from their pocket.  Thank you for sharing.

May 07, 2014 11:44 PM #25
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Jeff, very good information here. Knowing what they can afford saves so much time and frustration for all involved

May 07, 2014 11:45 PM #26
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

This community continues to amaze me. While I have had some challenges staying up to date with my blogging efforts, I continue to get comments from so many people I greatly respect. Taking the time to read and comment about something I wrote is a tremendous boost.

I have read each and every one of your comments. The blog may touch on an aspect but I learn to appreciate and learn from the many different perspectives. Thank you all for your kind words, perspectives and willingness to share.

May 08, 2014 12:05 AM #27
David A. Weaver
Peoples Bank & Trust Co. - Scottsdale, AZ
24 years helping folks finance their dreams.

With all of the guideline changes that seem to take place every day, it is almost always a great idea to have a mortgage professional go over your situation.  With every advantage technically we have today to make that process painless and over the phone, why not get pre-approved?  15 minutes is all it should take to get a good feel for what range of home price is feasible and how prepared the client is to become a serious home buyer prospect.  I recommend it to all my prospects.

May 08, 2014 04:22 AM #28
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hi David - great comment regarding the change in guidelines. Many people who have not tried to qualify for a mortgage recently will find quite a few changes in how they qualify in today's regulation nation.

May 08, 2014 04:31 AM #29
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Jeff, true - so much in this market where offers are flying all over!

May 08, 2014 02:19 PM #30
Arlow Real Estate Group in Savannah, Pooler & Richmond Hill
Keller Williams - Richmond Hill, GA

Hi Jeff, When if find someone a little reluctant to get prapproved I usually send them a few videos directly from a lender helping them understand the benefits. ..and in our area most listing agents (myself included) will not take a property off the market for a Buyer without a preapproval. 

May 09, 2014 12:43 AM #31
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Mark - once I explain the reasoning behind getting pre-approved I usually get great acceptance. For those that need a little more convincing, a video of one of your preferrred lenders is a great idea. Most of the agents here won't accpet an offer without a pre-approval. We provide our receommendations to the sellers and they usually take at least that part of our advice. :-)

May 09, 2014 12:52 AM #32
Gypsy Truesdell
Century 21 Greater LandCo Realty - Idaho Falls, ID

I have my buyers get a pre-qualification letter the second time we go look at houses.

If they come in the office, I set down with them, ask about financing. If they tell me they plan to pay in cash I say I need a Proof of funds for when we find that perfect house. If it's a loan I have them get the pre-qualification letter by the second time showing. I understand the frist time, they may not have one. Espicially first time home owners, but if I have done my job of explaining the process then they should have one by the second showing.

May 09, 2014 01:20 AM #34
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hi Gypsy - that sounds like it works well for you. With first time home buyers they usually are not aware of the "why" and you give them a great explanation.

May 09, 2014 01:24 AM #35
Barry Fence

This is always a difficult point when dealing with new clients as they don't trust you enough to fill you in on their financial situation. Others may feel that you might give away their position in a negotiation, as some sellers may feel that they should hold firm to a higher price point if they know the buyer is coming with all cash. (They must be rich!)

I make a point to have them talk to one of the mortgage brokers that I trust as this puts another layer between them and myself.

May 09, 2014 06:11 AM #36
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