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Old 05-18-2013, 02:26 PM
 
3,493 posts, read 4,329,474 times
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I don't understand the people who go to see homes without pre-approval. When I was searching for a home, I changed my budget after realizing I was happy to pay more for some of the nicer homes in the city. When we went in we were already pre-approved for almost twice what we intended to spend. It just made sense to contact our mortgage lender and know what we could offer. When we made the choice to start looking at nicer homes, our realtor was polite and just started taking us to them. I wanted him to know he wasn't wasting his time, so I gave him a letter showing our actual pre-approval so he would know we were still shopping well within our price range. I always hated when people screwed with the sales staff by looking at stuff they couldn't afford.
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Old 05-18-2013, 06:58 PM
 
Location: Texas
41,111 posts, read 45,530,534 times
Reputation: 63477
I agree with the premise of not being an ahole and dragging your realtor around to stuff you could never afford.
That's just common decency.

A letter doesn't prove one thing or another.
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Old 05-18-2013, 09:27 PM
 
Location: Martinsville, NJ
6,106 posts, read 10,315,853 times
Reputation: 3860
Quote:
Originally Posted by Articpuffin View Post
I am looking for a house right now. I am a well qualified buyer and I do have a preapproval. My preapproval letter was issued based on the the list price of a particular house I was interested in about a month ago. My preapproval letter is for an amount lower than the max amount i know I am qualified to borrow. Would my request to view your house be declined because my letter is for $x and your house is listed for $x+y? What about if my preapproval letter is for more than the listing price of your home ? Should I request a new approval letter just to view your home?
If I was aware of your preapproval requirement , I would not bother even viewing your home. Out of the box your requirement would make me feel that you are a fussy over particular seller that will just be a greater pain in the neck as the deal progressed. It's your house so you have every right to set the rules but you could be ruling out a potential buyer by imposing unnecessary requirements up front.
Someone else suggested that you find another way to screen your buyers. I second that suggestion.
What would be another way to screen? A pre-qualification or pre-approval is an indicator that you have the financial wherewithal to make the purchase. That's just about the only thing about which most sellers are concerned, so what other screening mechanism do you suggest?
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Old 05-18-2013, 10:43 PM
 
5,048 posts, read 5,626,025 times
Reputation: 4107
Quote:
Originally Posted by Bmachina View Post
I live outside a small town in a very unique custom home. I requested that pre-qualified only was added to our listing from the beginning and it was not. We were getting between 2 and 6 showings per week with zero interest or offers. I assumed that I was right, and they were mostly nosy locals. We have women in my small town that go to every single open house and look through cupboards and gossip about people's homes. Since I added pre qualified showings only, we have had exactly 0 showings.

We are on a large property with animals and multiple buildings that need to be prepped before each showing. We also have to load the car full of dogs and take them with us each time. We also both work full time, and I have been having help come each week to help keep the house and property spotless and manicured. It is a big hassel to get everything ready and leave for 1 hour each time.

My mother is a realtor and she proclaimed that I need to open up the home to anyone who wants to see it "because no realtor would waste their time showing homes to people who are not qualified." I disagree with her as I have seen it happen all the time - she likes to BS me. I think the fact that the showing stopped dead after requesting qualified buyers, is proof that it was being shown to non serious lookers.

We are in no huge rush to sell this house btw. I am just curious what people feel about "pre-qualified."

Thoughts?

(the market for higher dollar homes in my area is almost dead due to lack of jobs. This is not a region where homes sell in 2 weeks with multiple offers.)
Perhaps you or your realtor may have an interest in advertising out of your area.

BTW, some realtors do waste time showing to people not qualified or who think they are qualified. Some are just too shy to ask about qualification. Some assume the buyers are qualified or seem to be because of their vehicle or whatever. Some hope to cultivate a relationship with the buyer so that eventually they will find something even if they have to go lower. Some are showing customers for comps for their own home sale or for ideas for what to do with the home they are really interested in.

It seems like the number of steps a buyer and realtor need to go through makes for a better realization of the seriousness of the matter.
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Old 05-19-2013, 09:38 PM
 
3,313 posts, read 3,745,083 times
Reputation: 1823
Quote:
Originally Posted by FLgirl727 View Post
Maybe it's just the way it's done in Florida, but when I contacted the real estate agent about seeing houses, they asked for the name of my lender and verified the information. Real estate agents spend a lot of time (and money with the gas prices) driving around with buyers. If they do that for someone with zero chance of qualifying for a home... it's just bad business sense.
I worked with the number of realtors within last year (almost) and noone verified anything... they asked me about my lender (my credit union) and that was all. I must say I never took a ride with any realtor and was going to check out places I was very interested in (not every single house in my price range as some other people do).
After very negative experience with buyers agents I started contacting listing agents... no one even asked me if I have a lender...
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Old 05-19-2013, 09:41 PM
 
3,313 posts, read 3,745,083 times
Reputation: 1823
Quote:
Originally Posted by Wry_Martini View Post
When I bought last year, nearly every house I looked at, the seller required a pre-approval letter (not pre-qualification letter) plus proof of funds, as part of the initial offer. (Cash offers merely required proof of funds).

The proof of funds felt invasive, but it was a seller's market with bidding wars, buyers waiving appraisal/inspection contingencies, etc.
The same in our area, but it's something different... Everyone could still look at the house and only people with pre-approval letter could make the offer, which mean a lot of "just lookers"
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Old 05-19-2013, 09:46 PM
 
3,313 posts, read 3,745,083 times
Reputation: 1823
Quote:
Originally Posted by lurtsman View Post
I don't understand the people who go to see homes without pre-approval.
Read this forum and you will see bunch of people who are planning to buy their first houses/condos without pre-approval, savings more than 3% down and no knowledge about other related to home purchase and maint expenses.... it's the best time to buy real estate!!!
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Old 05-20-2013, 08:02 AM
 
2,538 posts, read 3,636,028 times
Reputation: 3303
Quote:
Originally Posted by manderly6 View Post
On the flip side it really doesn't mean a lot. Almost like a false sense of security.
I have to disagree. When I sold my last house I had two "offers" not even make it to the written phase as the potential buyers couldn't even pass the pre-qualify stage. This really p****d me off as it wasted my time and gave me false hope. If your credit or income was so bad that you can't even make it past the pre-qualify stage then you shouldn't have even been looking at houses.
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Old 05-20-2013, 08:28 AM
 
5,048 posts, read 5,626,025 times
Reputation: 4107
Yes, the buyer needs a reputable lender or mortgage officer, not the ones I call mybuddydotcom based on the guy in my experience who called his so-called customers and would start with hi, buddy. Not the ones that approve everyone and hope some stick.

There are also times when a buyer genuinely believes he's qualified and may even have qualified a few years ago and then suddenly something comes up to haunt him, he finds his id was stolen, something he thought was paid for is recorded as not, or someone filed a suit, etc.
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Old 08-29-2014, 12:31 PM
 
1 posts, read 668 times
Reputation: 11
Quote:
Originally Posted by Articpuffin View Post
I am looking for a house right now. I am a well qualified buyer and I do have a preapproval. My preapproval letter was issued based on the the list price of a particular house I was interested in about a month ago. My preapproval letter is for an amount lower than the max amount i know I am qualified to borrow. Would my request to view your house be declined because my letter is for $x and your house is listed for $x+y? What about if my preapproval letter is for more than the listing price of your home ? Should I request a new approval letter just to view your home?
If I was aware of your preapproval requirement , I would not bother even viewing your home. Out of the box your requirement would make me feel that you are a fussy over particular seller that will just be a greater pain in the neck as the deal progressed. It's your house so you have every right to set the rules but you could be ruling out a potential buyer by imposing unnecessary requirements up front.
Someone else suggested that you find another way to screen your buyers. I second that suggestion.
"Out of the box your requirement would make me feel that you are a fussy over particular seller that will just be a greater pain in the neck as the deal progressed"

Sounds like you are a selfish person and thinking of your self only. The concept of prequal is good but many people hate it because they just want to buy and do not think of the seller. They also do not think realistic and often look beyond their means just to be turned down by lender after price negotiations. In my opinion the entire industry is tailored to the buyer and that is a great imbalance.

I am selling a house now and after the first showing my agent says they are pre-qualified and it looks good. 3 weeks later we have no financing still and buyer still working on financing. I am close to telling them to F off and legally I can do so because the terms of the contract have not been meet by buyer when they failed to provide financing within timeline of contract.

I listed my house because I want to sell it,,,,,,,not be burdened by people who have little to no respect for the seller. It seems as though the buyers and their agent expect you to jump through all their hoops because you may be getting paid and that's BS. If it we're all my decision, I would not allow a single person to view my home till it was proven the could buy it if they wanted it.

You call is fussy and over particular I call it a waste of time for unprepared arrogant buyer
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