Why Can’t You Show Me Properties Before I’m Preapproved for a Loan?

By
Real Estate Agent with Century 21 Liberty Homes RS-#62825

"Why Can't You Show Me Properties Before I'm Preapproved for a Loan?"

I have had at least a third of my ‘potential' clients ask me this question and to tell you the truth it's a very valid question for the first time home buyer.  The excitement of making that first initial decision to purchase a home was their first step and then they immediately want to go out looking at that dream home with four bedrooms and a perimeter lot with a ‘to die for' view of the ocean.

It's 1.5 million dollars.

What is your desired monthly mortgage payment?  In other words, are you comfortable with paying XXX  per month for that dream home? The first time home buyer will usually have an amount in mind that is one third the payment per month for that million dollar home.

Speak to a Hawaii Local Lender who will gather all your information (income, credit, debt etc.) so they can conclude what price range you are qualified for and are comfortable with for that monthly mortgage payment.  The loan officer will also give you options for loan programs that will suit your needs.

Getting preapproved will also save time and heartache.  How?  Knowing what price range you're approved for will keep you in a realistic frame of mind in searching for that dream home. There is no sense looking at million dollar homes when you are qualified for a half a million dollar home.  We make appointments and look at your selected price range of homes (or condos/townhouses) so we aren't spinning our wheels and wasting time.

And......

No broken hearts over a "to die for home"

........ that you can't afford.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs  she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents. Website: www.hawaiihomesmarket.com

  

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Celeste "Sally" Cheeseman  is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs  she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.

 

 © 2007-2014 Celeste "Sally" Cheeseman's

Hawaii Real Estate and Relocation Blog.

All rights reserved.

     

 


 

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Julie Chroust 01/16/2011 01:22 PM
  2. Lanette Branch 01/16/2011 01:44 PM
  3. Ed Silva 01/24/2011 09:41 AM
Topic:
Home Buying
Location:
Hawaii Honolulu County
Groups:
Realtors®
POSITIVE ATTITUDE for the Weary Soul
BananaTude
Active Rain Newbies
1st Time Buyers
Tags:
hawaii first time home buyer
hawaii loan officer
loan preapproval

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Rainmaker
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Lanette Branch
RE/MAX Components - Fallston, MD
Bel Air, MD REALTOR

Well-written and much appreciated; that's exactly why I re-blogged it!

Jan 16, 2011 01:52 PM #8
Rainmaker
409,905
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Celeste, 

It's such a huge job to find a good home for a buyer with lots of homework involved for the agent that it doesn't make sense to go out looking before the buyers do their homework.  

Can you imagine telling a builder to build a home with out having a realistic budget?  

It's called pre-qualifying in marketing terms and is used in all smart sales industries!

All the best, Michelle

Jan 16, 2011 01:54 PM #9
Rainmaker
210,839
Woody Edwards
First Choice Realty, Inc - Chesterfield, VA
A Realtor® Who Answers His Phone!

Well put...........I especially love your last statement about broken hearts!

Jan 16, 2011 02:04 PM #10
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Celeste "SALLY" Cheeseman
Century 21 Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Thanks Lanette!

Michelle: I feel the same as many others do as well. It's the most important part of the transaction ....to even get started.

Woody:  How many go to Open Houses (without an agent) and love the home and want to buy it...only to find out they don't qualify?  They are wasting so much time and can get prequalified in a short amount of time and better yet...get a Realtor® and they can schedule many showing appointments within that price range :)

Jan 16, 2011 02:18 PM #11
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Steve Shatsky
Prudential Texas Properties - Dallas, TX
Dallas Real Estate & Short Sale Specialist (214)213-0340

Hi Sally... that's an excellent assessment and rationale.  The disparity between what a buyer wants and what he/she can afford still exists and reconciling that gap from the outset benefits everyone.  I wish that more home buyers seemed to understand that.

Jan 16, 2011 02:42 PM #12
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Celeste "SALLY" Cheeseman
Century 21 Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Steve.....gets down to wants vs. needs right?  I want to have no bills...reality....there are always bills :)

Jan 16, 2011 02:51 PM #13
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Michael Thornton
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspector - Nashville, TN area - 615.661.0297

Sally, no need to waste everyone's time until you know that they are good for the loan...

Jan 16, 2011 04:12 PM #14
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Stacey Smith
Michael Plummer Group - Aliso Viejo, CA
Your Orange County Beach Cities Realtor

Great post, I will usually take my buyers out the first time even if they are not qualified for the sole purpose of them getting to know me and used to the idea of working with me. From there they can develop a comfort level with me and be willing to take my direction of getitng them set up with a lender and work on getting the approval needed to buy a home.

Jan 16, 2011 04:38 PM #15
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Jeff Dowler CRS
Solutions Real Estate - Carlsbad, CA
Carlsbad CA Homes for Sale (760) 840-1360

Sally

Getting pre-approved is such an important part of being prepared to purchase. So many do not do this in advance. And you are right - knowing your budget, in addition to what the bank says they will loan you, is key, and those may be vastly different depending on individual life styles.

Whenever someone says "oh ot will not be a problem" that is a red flag, especially in this day and age of stricter bank rquirements (unless they are paying cash, of course).

Jeff

Jan 16, 2011 05:04 PM #16
Rainmaker
562,503
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Sally,

Great topic; the wisdom of obtaining a lender's pre-approval bears repeating.

Steve

Jan 16, 2011 05:06 PM #17
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Sally, I just went through this last week with a buyer that wanted to see one of my listings. I did bring them in, but also went through the story if getting properly set up with a pre-approval. When they did go through the process, they learned that they were not qualified for the home they wanted, but they will spend their time looking for something within their range, and yes with me.

Jan 16, 2011 05:15 PM #18
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Celeste "SALLY" Cheeseman
Century 21 Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Michael: I agree..

Stacey: The reason I'm saying this is because I did that at the beginning of my career....why even go through a few hours of "getting to know you" while driving around when you can sit at your office and do the same? Then, at the same time go through the process....starting with the first most important part.....the qualification?  I find that while showing property we are in the second stage and I can spend the time with them talking about the next step. Putting in an offer.

Jeff: And even then...we need proof of funds. So many say all cash and then when you ask them for that (because it is a stipulation with the acceptance of a contract) they go missing lol

Steve: Of course it bears repeating...it IS the first part of the process.  Everything else is mute is they cannot qualify.

Hey Ed...Now that is what I'm talking about. You had the chance to talk to them and go through some of the process....and they were able and willing to go the mile to get qualified...AND...stick with a great Realtor®

 

Jan 16, 2011 05:53 PM #19
Rainmaker
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Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Sally - Getting pre-approved is an absolute must these days.  Most buyers (especially first timers), tend to have much bigger wish lists than their budget can afford.  JMHO   Hope your Sunday is going well.  :)

Jan 16, 2011 06:07 PM #20
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Sally, you nailed this one. Nothing more to say!

Jan 16, 2011 07:24 PM #21
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Anna Banana Kruchten
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

"Why Can't You Show Me Properties Before I'm Preapproved for a Loan?"

My answer - NO pre-qualifying is your first step!

Very short and sweet and so well said!

Featured in BananaTude

Jan 16, 2011 09:02 PM #22
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Sally, Realtors send me their Buyers to be Pre-Approved all the time, and it is a good thing that they do,  because a large percentage of them are not in a position to purchase a house, income wise, or credit wise.  If they had not taken the precaution of having them Pre-Approved first they would have spent a lot of time showing them houses that they can not buy.

Jan 16, 2011 10:16 PM #23
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Celeste "SALLY" Cheeseman
Century 21 Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

I think the majority of us agree that getting preapproved is the first step...and the most logical so both sides are not wasting time looking/showing houses that are not affordable to the client.

I mean...why even get someones hopes up by showing property without knowing?

Jan 17, 2011 12:04 PM #24
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Barbara-Jo Roberts Berberi & Corinna Birgit Cromartie
Charles Rutenberg Realty - Palm Harbor, FL
Palm Harbor & Dunedin FL Residential Real Estate

All I can say to this is OY! I REFUSE to show people properties if I don't have a preapproval! There are plenty of agents that will, so they can move on if they want to and that is fine with me but I refuse to waste my time and energy if they can't even comply with something that simple.

Jan 17, 2011 08:43 PM #25
Rainmaker
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Steven Nickens
Island Sotheby's International Realty - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

Sally, it saves everybody, the sellers, buyer's and agents a lot of grief, nice article.

Jan 17, 2011 10:44 PM #26
Rainer
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Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Excellent post! It is better for the buyer so that they will look only at homes they can afford. Also, if they are not in a position to qualify for a mortgage, they can start repairing any problems sooner.  A good lender will work with them to develop a plan to position themselves for approval.

Jan 24, 2011 10:16 AM #27
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