Why does my Realtor require a pre-approval before we see homes?

By
Real Estate Broker/Owner with Christiansen Group Realty (260)704-0843

This is a question we have been asked many times in the 9 years that we've been selling real estate in the Fort Wayne area.

 

Some of our buyers are 100% certain on their credit scores, income, and buying power.  

 

Some of our buyers aren't sure if they can qualify for a mortgage because of income, questionable credit scores, or a recent bankruptcy.  

 

Either way we have our buyers get pre-qualified for a mortgage before we start the house hunting process.  

 

Here are some reasons why:

 

Mortgage brokers in Fort Wayne1.  What if you think you can afford a $300,000 home, we go view a couple, and you fall in love?  After you meet with the mortgage banker you realize you can only qualify for $200,000?  There's a big difference between the two prices in Fort Wayne.  That lower priced home just isn't going to live up to the higher one.

 

2.  What if we show you 5 homes before you get approved and then you find out you can't even get a mortgage?  That's wasted our time, your time, and the seller's time.  We've had many sellers that have young kids and pets.  Them rushing around for an hour to prep the home for a showing where the buyer can't even buy isn't fair to them at all.  

 

3.  There are many types of loans out there.  How do you know which one is best for you?  What's the difference between uninsured and insured conventional loans?  What is PMI?  What's the difference in interest rates on a 15 year v. a 30 year loan?  All of these questions can be answered by a qualified mortgage banker.  

 

We highly recommend Ruoff Home Mortgage and have had nothing but success with them, but it's always your choice in who you use.  

 

So when you call us to help you find your new home in Fort Wayne, expect us to ask you to get pre-qualified for a mortgage before we open the first door and see the first home.  It's not that we're trying to be difficult, it's simply good business to do it this way.  

 

If you do need to get qualified for a mortgage, please call us and we can refer you to one of the lenders that we know and trust.  

 

Feel free to give us a call or text with any and all real estate questions at (260) 704-0842.  Thanks for stopping by!  

 

 

Posted by

 

 

   

Fort Wayne Realtors Jared and Amanda Christiansen with Century 21 Bradley

Amanda Christiansen is an award winning Realtor with Christiansen Group Realty.

 

Jared Christiansen is a business partner and in charge of marketing and taking care of things behind the scene.

 

Enough about us...

 

Tell us what you want your real estate experience to be, and we will do it YOUR way.

 

Buying a home in Fort Wayne? Tell us your wants and needs. Let us know how you envision your family living.  Tell us what's important to YOU, and we'll find the community and home that fits.  

 

Selling your home in Fort Wayne?  Our job is to make you the most money possible in the shortest amount of time. We offer our sellers professional staging, professional photography, and more internet marketing than most. 

 

We are committed to giving you everything we have to offer.  We are both full time agents and will work around your schedule.  Do nights and weekends work better for you?  NO PROBLEM. We are here to help YOU at YOUR convenience.

 

Amanda can be reached at 260-704-0843, and Jared can be reached at 260-704-0842, or you can email us at JaredChristiansen@gmail.com, or Amanda427@gmail.com.

 

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Carla Muss-Jacobs, RETIRED 12/28/2015 02:23 AM
  2. Sybil Campbell 01/03/2016 11:33 AM
  3. Elyse Berman, PA 01/03/2016 07:59 PM
Topic:
Mortgage / Finance
Location:
Indiana Allen County Fort Wayne
Tags:
buying a home in fort wayne
need a realtor in fort wayne
mortgage brokers fort wayne

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Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I think we're all on the same page here.  

Dec 28, 2015 07:34 AM #22
Rainmaker
1,109,487
Paula McDonald
Magnolia Realty ~ Granbury - Granbury, TX
Magnolia Realty ~ Granbury, TX 936-203-0279

I wish I could LIKE this post a thousand times.  This is what I preach all of the time.  Excellent.

Dec 28, 2015 07:52 AM #23
Rainmaker
1,010,646
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Just because someone thinks they have acceptable credit and income, does not mean they can qualify. Other things like quality and probability of future income, front end and back end ratios also must be considered. Buyers just don't know what they don't know.

Dec 28, 2015 08:12 AM #24
Rainer
369,943
Thomas F. Scanlon
Borgida & Company P. C., CPA's - Manchester, CT
CPA, CFP

Amanda and Jared Christiansen -Well done. Excellent post. Have a process and follow it. Prospects that don't follow your process become former prospects.

Cheers,

Tom

Dec 28, 2015 09:33 AM #25
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Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Because your Realtor does far more than just open doors, that's why. Excellent Business Practice Jared.

Rich

Dec 28, 2015 10:20 AM #26
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Amanda and Jared, this is just about the clearest information I've ever read about the importance of getting pre-approved for a mortgage. 

Dec 28, 2015 10:54 AM #27
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Amanda and Jared Christiansen - what a coincidence about timing of your post!

Just met a buyer who wanted to see the home at $500K. Met the lender and realized that they are qualified for much less!

We do want to manage our time with qualified buyers!

Dec 28, 2015 03:10 PM #28
Rainer
496,448
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

Just don't do it...show homes without preapproval!!!

If we show homes before they get approved, find out you can't even get a mortgage?  That's wasted our time, your time, and the seller's rushing around to prep the home for a showing isn't fair to them at all.  

Dec 28, 2015 07:54 PM #29
Rainmaker
1,388,742
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

I couldn't agree more.

I have on occasion agreed to show houses w/out one, but I'm getting better on making sure I have it in hand up front. (One set of buyers were coming a long distance to see houses and I asked them to bring the pre-qual with them... they arrived without it but we already had all the appointments set up and it was a long drive for them so after reviewing all paperwork/etc, I showed them the houses anyway but told them we couldn't go out again until they had it... still waiting).

Dec 28, 2015 08:08 PM #30
Rainmaker
2,415,124
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Consider it an ante sort of like when playing cards. No ante, no cards, no play

Dec 28, 2015 09:53 PM #31
Rainmaker
323,145
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Jared,  hope you and Amanda had a Merry Christmas; and I wish you the Brightest of New Years 

 

When speaking to home shoppers, I talk in terms of physical health exams before taking on a new endeavor such as running or hiking.  Many employers require a physical, or a battery of tests before offering you a new job.  Business men usually sit with their accountant or banker to be sure they are prepared to take on new financial challenges 

 

I am no longer a mortgage loan officer, and do not want to put their future well-being at risk.  For their sake, I stress pre-approval first, home viewing second.

 

Why do they want to view a house before they buy?  To be sure, the house is READY for their investment.  Would I encourage them to purchase sight unseen, and without a review by Appraiser and home inspectot.?  They would not feel as though I had done my due diligence.  I owe that to them and the seller.  They owe it to seller and agents to have a fiscal examination by a lender.  They may not like it, but they get it.

 

Additionally, if they see a property and want to make an offer, the seller will require a pre- REALTORlREALTOR BEFORE taking their offer seriously.  Most homebuyers know they had to complete college entrance exams BEFORE being permitted to enroll; so we need to stop the dance and get serious about buying a home   Do they entend to pay REALTORS® for their time when they look at houses they are not prepared to buy?

Dec 28, 2015 10:06 PM #32
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Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

You have all good points and it's something for the buyer to consider. That said...I will take buyers out once without a prequal. 

Dec 28, 2015 11:59 PM #33
Rainmaker
527,231
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

It is all about the timing.  I tell buyers that if they are not prepared, another buyer will be and they could lose the house that they really want.  Thank you for sharing, these are all great reasons to get pre-approved before you start house hunting.

Dec 29, 2015 01:46 AM #34
Rainer
154,207
Kathy Goldman
REVA Online | SEO Boost For Real Estate, Social Media Marketing for Real Estate and Real Estate Blogging Expert - Waukesha, WI
Social Media & Marketing for Real Estate

As a Real Estate VA and a non-Agent in this conversation, I think it all makes good sense. I don't want to waste my time looking at homes out of my league. But then again, if I were qualified for a bit more, it may allow me to move to a different part of town! (if you know what I mean). I want the edge in negotiating that pre-qualification gives and I really think THAT is the coup de  gras of why you should be pre-qualified.

Dec 29, 2015 02:12 AM #35
Rainmaker
1,931,771
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

You are helping the buyer out by setting realistic expectations. He or she knows they can have the place if it works, is "the one". Sellers appreciate the pre-qualification too. Although some just want traffic, anyone to tramp through thinking it won't sell without a showing. With videos, the online imagery, narrative, plat maps, it is being "shown" around the clock.

Dec 29, 2015 03:44 AM #36
Rainer
276,263
Ann Ybarra
HomeSmart - Scottsdale, AZ

I absolutely agree - it's best for everyone involved! thanks Amanda and Jared.

Dec 29, 2015 11:01 PM #37
Rainmaker
3,489,541
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Amanda and Jared. Few buyers get this and you have done an excellent job explaining it. Could be a handout.

Jan 03, 2016 10:33 PM #38
Rainer
389,243
Anna Hatridge
Goodson Realty - Farmington, MO
Missouri Realtor with Goodson Realty

Great post.  You have summed up the reason it is so important for buyers to have that lender letter prior to viewing any home.  

 

Jan 04, 2016 08:29 PM #39
Rainmaker
797,059
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Amanda and Jared - You have provided some great reasons why getting a pre-approval is almost a necessity before looking at homes. Another great reason to get a pre-approval is to make sure your buyers are serious about buying.

Jan 05, 2016 04:20 AM #40
Rainer
157,994
Don Taber
Our Town Properties, Inc., Wilson, NC - Wilson, NC
REALTOR / BROKER / CRS / GRI

I have already commented on this once before but this morning was another example of why we need people to be pre-qualified.  A man called wanting me to drive almost 30 minutes in one direction and 30 minutes back to show him a house that he doesn't know if he can buy.  He was somewhat upset when I told him he would have to be pre-qualified before I would take 2 hours of my time to go and show him the house ( I wasn't actually that blunt).  Before the conversation was over I found out that although he is married, he plans on his mother signing with him in order for him to qualify.  There is 2 hours I can put to better use.

Feb 01, 2016 11:58 PM #41
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