Pre-qualification? We don't need no stinking pre-qualification!

By
Real Estate Agent with EastKy HomeFinders, Inc. (EKHF)

Really?  Are you kidding me?  Is pre-qualification such a foreign concept these days?  When I was being trained in 1991 and 1992, that was one of the first things that I was taught - always, always pre-qualify your buyers.

Why would someone want to spend all that time working with a potential buyer, showing them houses, buying them lunch, writing and negotiating contracts only to find out after all of that, that they can't afford to finance a piece of gum?

Yet here I am, the black sheep of my area once again, because I have the audacity to ask other agents if their people are pre-qualified before setting up an appointment with one of my occupied properties.

What prompted this rant you may wonder?  The phone call this morning from an agent wanting to see one of my properties and was aghast when I asked him "are your folks pre-qualified?"  (Guess he won't be showing the property.  LOL)

In fact, I had a potential customer call my broker last summer and register a complaint against me because I refused to show her a piece of property because she was not pre-qualified.  First, let me say that the property was 15 miles out of town (one way) and gas was $4.00 a gallon at the time.  Second, I asked her to get pre-qualified for 3 days prior to our appointment.  My thought was - "how serious is she if she refuses to pick up a phone and speak with a loan officer for 15 minutes".  I have the best broker in the world.  She totally backed me up and told the woman that I would be foolish to run all over the countryside with non-pre-qualified buyers!

I may be an old fashioned agent, but I still believe in service and professionalism and that means to all sides of the deal.

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Isaac E. Chavez 03/10/2009 12:05 PM
Topic:
ActiveRain Community
Location:
Kentucky
Groups:
Realtors®
Out Of The Box!
Kentucky Professionals
Tags:
prequalification
prequal

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Ambassador
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Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

I'm a lender and a licensed real estate attorney.  I just presented to 180 real estate attorneys last Thursday.  My concern????  Pre-quals may not be that good even if you get one.  Protect yourself and get proof of Mortgage Insurance if the loan calls for M.I.

Mar 09, 2009 01:57 AM #1
Rainer
13,192
William German
NetWorks Real Estate LLC - Lacey, WA

Shannon,

I agrree with your post. Nothing is worst than to have  a buyer that is not pre qualified make tons of appointments who may not even have any intention of buying anyway.  If they want look at homes then they should attend Open Houses.

Mar 09, 2009 02:00 AM #2
Rainmaker
74,344
Todd Kevitch
InterContinental Capital Group - Boca Raton, FL
Mortgage Loan Officer - I get deals done!

If they are serious buyers, they need to be pre-qualified.  Of course, PQ doesn't mean that they're loan-worthy but it is the first line of defense in telling them what they can afford.  Currently, I tell people as a standard, three times their income and have up to six months of reserves.  FHA loans are another story though.  I see the FHA loans funding many of our next wave of foreclosures.

Mar 09, 2009 02:24 AM #3
Rainer
268,446
South Austin Real Estate Blog
Sky Realty South Austin - Austin, TX

Shannon, its still being taught, I am convinced that a buyer who will not get prequalified is really not a buyer.  How much house can a person buy?  Until they speak with a lender it is a wide open guess.

Mar 09, 2009 02:28 AM #4
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Shannon V. Malone

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