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Is it common practice for home sellers to request a buyer be pre-qualified a second time by their own mortgage provider?

Asked by Trulia Los Angeles, Los Angeles, CA Wed Mar 6, 2013

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This is a precautionary measure. Sometimes experienced sellers want to make sure that buyers are still pre-approved. Things can change from the original pre-approval date to the current date. The buyer could have bought a car or made a late payment on a bill. This would hinder the buyers pre-approval and would no longer have pre-approval status. It seems the seller doesn't want to waste his time nor the buyers time.
1 vote Thank Flag Link Wed Mar 6, 2013
Yea it is very common for sellers side to request a cross pre-approval with sellers provided lender/loan officer.
1 vote Thank Flag Link Wed Mar 6, 2013
Generally this comes from the Listing Agent who wants to insure that the buyer is truly qualified and the best way to accomplish that is by using a "trusted source" a known lender. The bottom line most buyers are willing to do this because the want to get the property. There is no requirement to "use" the second source even if the lender is trying to "strong arm you".

Endre Barath,Jr.
Prudential California Realty
Beverly Hills, CA

homes@endrebarath.com
310.486.1002(m)
Web Reference: http://www.endrebarath.com
1 vote Thank Flag Link Wed Mar 6, 2013
I recommend to my clients that they do this because I was once burned by a buyer's agent who strung us along for months and months only to learn that her client could NOT get a mortgage because he was within the three year time period after both a bankruptcy and a foreclosure during which he could not get a loan. I don't know whether she was completely aware of the situation or not, however, I do know that, once asked my mortgage partner to see if he could help this gentleman I learned the hard facts of his situation. Now I recommend all prospects be pre-qualified through my own mortgage partner. They do NOT have to use him as their lender, but at least I know and my sellers know that there is a very good chance the buyer will at least be able to qualify.
1 vote Thank Flag Link Wed Mar 6, 2013
It's not common practice, but its not unusual at all. It's mainly to reassure the seller that you are qualified. You are obligated to use the lender though.
Best,
Susan@SusanBour.com
(310)600-4240
1 vote Thank Flag Link Wed Mar 6, 2013
Depends on the date shown on the Pre-qual you submitted with your purchase offer.
Some brokerages REQUIRE a pre-qual from their preferred lender to vet a buyer. The buyer can use any lender they choose. This requirement, however, provides the seller additional assurances if "Never Ever Bank of Clearwater Florida" fails to deliver on their commitment just before closing....again!

This is not a common request, but certainly should not be a show stopper.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420. 4041

Home tour Scotsdale Bluffs
http://youtu.be/KTuVUxNDpOQ
1 vote Thank Flag Link Wed Mar 6, 2013
Generally, when presenting an offer the prospective buyer will have a pre-approval from the lender. It is always best to have a pre-approval from a direct lender. Seller can ask for 2nd pre qualification but should only consider offers with lender pre-approval and source of funds. If I were the listing agent a pre qualification would not be acceptable. With valid pre-approval listing agent can check validity with lender that pre-approved prospective buyer(s).

Gail Mercedes Cole
EXP Realty
310.853.9933
0 votes Thank Flag Link Sun Jun 16, 2013
Many times this practice is more of a shady way for the listing agents lender to try to take the loan away from the buyers current loan officer. It's OK for them to want to make sure the buyer is qualified. But many times they unethically pitch the borrower to switch the loan to them. Their true objective not as much being to pre-qualify the buyer, but to take the loan.
0 votes Thank Flag Link Mon Mar 25, 2013
Unfortunately it is common. If you trust your lender (and I hope you do), have them communicate directly with the "seller's" lender to obtain cross approval. I put "seller's" lender in quotations because I believe about 99% of the time it's the listing agent making this request and not the seller. Your lender already has all the required documentation from you, and will be able to provide a copy of your credit report to the "seller's" lender without having two, three, four additional inquiries on your credit. Be very careful if you are borderline qualified - you don't want to risk lowering your FICO by having your credit pulled multiple times.
0 votes Thank Flag Link Mon Mar 25, 2013
Yes it is very common for seller/sellers agent to request buyer cross pre-approval with sellers lender.



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0 votes Thank Flag Link Sun Mar 17, 2013
Usually it is not the seller, but the listing agent who recommends the buyer gets pre qualified through the listing agent's preferred lender (buddy). Most sellers couldn't tell you a loan rep at a mortgage company to get pre qualified with, unless they are investors.

I don't understand how some agents leave the whole deal in the hands of the lender when its their deal...its their commission. They should really become acquainted with some of the banks guidelines and know what a bank looks for in qualifying and or what the bank is going to pick on during the apprisal so the problem can be addressed before hand.
0 votes Thank Flag Link Wed Mar 6, 2013
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