How to Make Loan Pre-approvals Work in Your Favor
By Kelly J. Phelan, RET Content Team Member
Posted by: RET Staff
Agents, have you ever had this happen to you? An enthusiastic would-be buyer calls you up, eager for you to show them a certain property. "I'd love to help you out," you might reply. "Go ahead and send me a copy of your pre-approval letter and I'll get in contact with the listing agent."
Did the mere mention of the word "pre-approval" stop the conversation dead in its tracks? Perhaps the caller was just an inexperienced buyer, or they were a lookie-loo. Regardless, no agent should waste their time on prospects who are not pre-approved for a mortgage.
Consumers with pre-approvals in hand are serious about purchasing a home. As an agent, your time is precious. You should be spending your time with the prospects most likely to result in a completed transaction.
However, don't think of unapproved buyers as a hassle--think of them as an opportunity. By tying the pre-approval process to the signing of a buyer representation agreement, you come out ahead--and with a qualified new client!