Loan Pre-Approval Takes Priority Over Pre-Qualification

By
Real Estate Agent with RE/MAX Executives

Loan Approval

Recently, I received this email

"Karen, I received the loan application from Dan. I will complete it and send it right back, Eugene"

This gentleman contacted me from a blog I had written about a subdivision in the Woodbridge area.  He is in the Marine Corps and will be stationed at MCB Quantico. We have not met in person, but over the phone we discussed his

  • Personal situation
  • Housing requirements
  • Purchase time frame

If he was in town I would still recommend he obtain pre-approval before we start looking at homes.  n my experience. there are 4 reasons

First There was a time real estate agents could very easily qualify a prospect and feel comfortable showing homes. However, there are so many home loan programs that change frequently as do interest rates. Unless the prospect has already spoken to a lender there is no way I can determine their financial parameters. It would be unfair to them to show them homes with no idea if and how much they can afford to spend on a home purchase.


Second In the early part of this century, millions of people bought homes for which they were unqualified - it created a financial crisis that is still plaguing the real estate market since there are uncounted people "unber Water" and unable to afford to sell their home/ Sellers and their agents are now reluctant to take a home off the market unless they have reasonable assurance the purchaser will come to settlement. 

Third When I start showing homes to a client I have every confidence I will find the right home (my confidence has been developed after 40 years in the real estate business). Once I find the home you want to purchase it becomes my responsibility to use my negotiating skills to make certain it becomes your home. I can't fulfill that obligation unless you do your part first.

 

Fourth Your bargaining position is much stronger, especially if there are multiple offers on the property of your choice.

 

 

 

=hous

 

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The Kruschkas are long-term Prince William County residents with more than 30 years experience as real estate professionals serving Woodbridge, Manassas, Dumfries, Manassas Park, Bristow, Brentsville, Gainesville and Haymarket

Our Experience Isn’t Expensive – It’s PRICELESS

If you plan to buy or sell a home or property contact Karen and Art by Email or call us at 703-499-9279. Put our record of customer service, real estate experience and state-of-the-art technology to work for you

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Ambassador
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Great reminder fo home shoppers to get pre-approved before starting their home tours.  It just makes sense.

Sep 20, 2016 01:45 AM #1
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Belinda Spillman Thank you for your insight

Sep 20, 2016 04:18 AM #2
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Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Karen, you listed four great reasons for buyers to get pre-approved before they start to look at houses.

Sep 20, 2016 12:50 PM #3
Rainmaker
5,270,704
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is excellent advice to share with prospective home buyers.

Have an outstanding week.

Sep 20, 2016 09:11 PM #4
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4,796,551
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

This is great advice, Karen.  Many folks don't really understand just how much the loan process has changed lately.

Sep 20, 2016 09:36 PM #5
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Rebecca Gaujot, the Go To Realtor® Thank you for your visit and support

Sep 21, 2016 05:31 AM #6
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Roy Kelley Thank you for your visit and support

Sep 21, 2016 05:32 AM #7
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Gabe Sanders Thank you for your visit and support

Sep 21, 2016 05:34 AM #8
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Karen...this is a great post. I'm surprised it wasn't featured. There is a big difference between pre qualified and pre approved, and you have explained why a buyer should be pre approved versus pre qualified very well. 

Sep 22, 2016 01:23 PM #9
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Debbie Laity Thank you for your c9omment and insight

Sep 23, 2016 03:13 AM #10
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Karen

I couldn't have said it better about why it's essential to get pre-approved. I think many buyers do not understand the reasons why it is so important. And every ow and then someone will say...oh, there won't be a problem. Hah. We know how that can turn out.

Jeff

Sep 26, 2016 11:06 AM #11
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Jeff Dowler Your insight is always appreciated

Sep 26, 2016 11:54 PM #12
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