Why do I need to pre qualify with your lender, I already have a lender

    Getting angry when lenders hurt buyersWow, if this doesn’t hit a sore spot with most real estate lending professionals, I don’t know what does.

    There are many reasons for this to be the case, and it would seem that some lenders are their own worst enemy.

    Here is the “reason” for this requirement, that most “savvy” of the real estate listing agents employ.

    If a Top Professional Realtor, that lists many homes for sale, has been in the business for any amount of time, they have been “burned” by a lender that did not have “enough information” to prequalify the real estate buyer, that they said was “qualified or approved”.

    So, their offer is chosen, maybe after a short bout of bantering back and forth via counter offers.

    Part of the process of Selecting offers for real estate sellers, most of the time, hinges on the strength of the pre qualification letter from a Reputable Lender.

    After that, escrow opens. The deposit check is “deposited” with the escrow company handling the escrow for the home, condo or town-home being sold.

    From the time the offer is completely executed – time starts.

    Within the “timeframes” employed within contact – it maybe that the real estate buyers have 17 days to complete all inspections, approvals and qualification before having to remove their contingencies. ¬†After a buyer removes contingencies, and want to cancel the deal, they can lose their deposit.

    The “burned” part comes in when the Sellers Realtor is notified that the buyer is cancelling escrow because they could not get a loan.

    OMG – So the phone calls start from the Listing Realtor to the Buyers Lender and Realtor representing the buyer. Some “professional courtesy’s” are exchanged in high volume over the phone and via email.

    However, they can use colorful metaphors all they want, it may be that the buyer did not qualify in the first place and won’t now, not even with a loan shark.

    So hence the reason for pre qualifying with another lender. Typically the agent’s lender. The agent who is representing the home seller.

    This requirement is usually listed on a counter offer during the negotiation process between the buyer and seller of the real estate transaction in question.

    Remember, if the buyer agrees to the counter dictating to qualify with a lender of the sellers choosing, they are stuck to this requirement or maybe in breach of contract.

    Don’t take offence – Just as long as the “second lender” does not try to convert the buyer by saying clever things like:

    “How much is your lender charging? I can beat that.”

    “What is your interest rate? I am sure I can beat that.”

    Typically, this is “bad form” for a “secondary real estate lender”. And even more typically, the promises are “pie in the sky tactics that end up being lies”.

    Understanding everyone wants to make money, this is not the way in which to do it and shines a negative light on home buying experience for the real estate buyer.

    Reach out to my Paris911 Team of REMAX of Valencia CA Realtors. We will assist you with the best questions to ask lenders when wanting to purchase real estate and more.

    Additional Resource: Sign up for our Crash Course on Real Estate

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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