Sounds Fishy… But it is a legit step. By the owner, I am of course referring to the bank who owns the property. We have watched the Santa Clarita real estate market make a switch to where, even some agents, are prompting their sellers to have any buyer also get pre qualified with their lender of choice.
It is the case that not all lenders are “reputable”. The same goes with real estate agents, sad to say. It is also my experience that some of the pre-qualification letters and pre-approval letters are not worth the paper they are written on. Therefore, I totally get this step, as should the buyers that are out in the world looking to buy real estate.
What chaps my back-side has to do with the lender that a buyer must pre-qualify with(aka “app with”), attempting to convert the buyer to work with them. In my book, that is as bad as a real estate agent getting a call on the phone about one of their listings and never asking the caller if they are working with a real estate agent. Worse would be that agent knowing that caller is working with another Realtor, but pressing to convert them to work with them. No matter how bad this action “chaps me”, it happens day in and day out in Real Estate in Santa Clarita and in the rest of the world.
Most clients, that are working with a Real Estate agent, are already going to have a lender. When that “buyer” calls the, “need to pre-quality” with lender, that lender should just do their job with no attempt at conversion. It should be “cut and dry”. One fluid movement, can they get a loan or not?
Unfortunately in this constristive real estate market, we are watching as many a “game” is being played by all parties involved. So, when your agent tells you that you need to prequalify with the property owners Lender, it should not come as a shock. But, if that lender attempts to convert you to their client, knowing you are working with someone, then you should stand your ground.
Promises are made every day in Real Estate. Unless it is in writing it is meaningless. So, if you are being promised the world by this “unknown”, take it with a grain of salt and if it sounds too good to be true, it probably is.
Would you drop your current lender if another promised you a better deal? How about your real estate agent?