Home Buying in Houston>Question Details

Trulia Houst…, Other/Just Looking in Houston, TX

Is it common for sellers to request that buyers be pre-qualified again by their mortgage provider?

Asked by Trulia Houston, Houston, TX Fri Apr 19, 2013

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I've seen some pretty redundant requests recently due to the shift in the market. It is not common for sellers to request that buyers be pre-qualified again by their mortgage provider. When it happens, it is normally a request that the listing agent proposed to the seller when taking the listing.
1 vote Thank Flag Link Sun Apr 21, 2013
I have seen numerous instances where the seller of an investment property insists that the buyer be approved by a specific lender. I guess they feel more confident if their lender says the buyer measures up.
1 vote Thank Flag Link Sat Apr 20, 2013
Not common.

This only happens when the listing agent is stupid.... Or the listing agent is trying to illegally steer business to their preferred lender.

There is no reason for this to happen.
1 vote Thank Flag Link Fri Apr 19, 2013
The reason that we sometime do it is that there are so many "pre-approval" letters out there from various mortgage lenders that are useless and meaningless.. In performiing my fiduciary duty to my seller, I'm making sure that before they take their house off the market for 30 days or more that we have a third party evaluate the borrowers qualifications to be able to close within the time frame that the buyers agent asked for. If the buyer is truly qualified to obtain the loan needed there is no proble, theres an objection usually when there are hidden issues or factors.
Flag Sun Apr 21, 2013

It happens from time to time when a home is listed by a relocation company that may have their own lender (Weichert Relocation comes to mind). They want the buyer to speak to their lender and see if they are qualified and make an offer to that buyer with better loan terms.

Overall, this does not happen very often. However, sellers might be asking this question more and more as the markets swing to favor sellers and multiple offers on homes come in. These sellers want to make 100% sure there buyers are able to obtain financing.

It would be extremely rare for a sellers current lender to pre-qualify a buyer looking at the sellers home UNLESS it was an FHA loan that is being assumed by the future buyer.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
1 vote Thank Flag Link Fri Apr 19, 2013
No, that is not a common request sellers make.

Diana Walton
Diana Walton Properties
Champion Real Estate Group
0 votes Thank Flag Link Mon Jan 6, 2014
Being pre-qualified is required in todays market, maybe the pre-qualification they had was old and the seller wanted something up to date.
0 votes Thank Flag Link Mon Jan 6, 2014
YES, especially if the pre-approval is from a non-local lender.
0 votes Thank Flag Link Tue Dec 31, 2013
This is common with bank sales. They want to ensure that the deal will close.
0 votes Thank Flag Link Tue Dec 31, 2013
Truthfully speaking I do not think those who were wrongfully foreclosed on should have to be pre-qualified especially since it is mostly the banks mortgage loan servicing companies and real estates who are highly at fault for all of this fraud not to mention everything else and even a house is a material thing and naked we came naked we leave the Lord our Shepherd said he would put a roof over our heads and his word never come back fraud the main ones who done wrong are the ones that should have seen that justice be done thank God the very last time I took a look God was still in charge and still in control without him we are helpless that is why it is best to leave justice to be done into the hands of a just man we all will reap just what we sow before we leave this old world so filled with sin to return no more even though some people think they are exempt they think their money can do anything but fail and some think when Jesus died that God left them to do his job even he did rise again some people much rather die and go to the hidden pit of hell before they repent and sin no more compared to not having any money even though they know the love of money is the root to all evil they do not even see what President Jesus Banker Jesus Governor Jesus Congressman Jesus Mortgage Jesus Real Estate Jesus Loan servicing Jesus in short Jesus as all of God children All and All and our everything yet many refuse to put him first or give to him all of the thanks praise credit honor and glory that only he deserve he is hitting all of those involved with wrongful ungodly dealings where it really hurt the money as the love of money is the root to all evil some people even have an ungodly nerve not to fear the Lord they do not even care that they fall into the hands of an angry God that he take his hands off of them that they be left here not fit to live or die the banks mortgage real estates and loan servicing companies should own to what they have done and are still trying to take people homes that have been paid in full this is one reason God have allowed so many homes to be wrongfully foreclosed on and evicted as some people continue to pay for an already paid in full home some did not get their homes the Godly right way in the very first place and some will be blessed with better and God very best so all of you who are victims just count it all joy go about our father who art in heaven business stay out of his business and keep the ungodly out of our business put all into God hands leave all stand still sat back relax and watch the Lord work as he is awesome he3 is to wise to make a mistake to just to do wrong and can do anything but fail no matter how your situation burden problem trouble and circumstance look just keep your eyes minds hearts and souls on Jesus the Christ who should always and forever come first in his life do not give doubt holding a grudge making an ungodly deal with that old devil wreck your life let go and let God drive and his angels ride do what is right and pleasing in God sack never be a shame of him ask him to bless you with brand new and pure highly favor as it will open all closed doors and close all open doors just for the Lord stand your very own ground and never let the Lord down all those who lost their homes should be given the house they choose Godly jolly debt free tax Godly jolly debt free and if they want to be pre approved and or pre- qualified it should be done with no ungodly mess they should be paid for their suffering and the list goes on especially the last will be first the rich on the bottom the poor on the top to be continued and ending by the Author and Finisher of our life JESUS THE CHRIST
0 votes Thank Flag Link Tue Dec 31, 2013
I have never let someone tell me who my client has to be pre-approved by. If it has been more than 30 days since the hard credit check was ran to obtain a pre-approval, their credit score will be adversely affected if another "hard check" is ran again.

Search homes on the Houston MLS http://har.com/alanharper

Alan Harper, REALTOR®
World Wide Real Estate
0 votes Thank Flag Link Sun Apr 21, 2013
In instances other than foreclosures, no. Sellers don't care where the money comes from ... it all spends the same. As long as the buyer has the wherewithal to purchase the property, it shouldn't matter.

Foreclosures are another matter. The lienholder/seller wants to be reassured that the buyers can qualify, so they often ask that they submit an application ... BofA comes to mind here. Buyers are under no obligation to use a particular lender ... but qualification using the bank's criteria is a prerequisite.

Al Geffon
(713) 213-6350
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Sat Apr 20, 2013
No, it is not common for sellers to request buyers' to "double app" (different name for same request). This is a practice done for Lender owned properties usually. Most principle sellers do not have a particular lender that they work with much less ask the buyers to be pre-qualified with. If this type of request is being done, it may be to make sure the buyer(s) qualify before seller decides to accept offer.

Roland J. Northland
Experienced Professional
0 votes Thank Flag Link Fri Apr 19, 2013
Yes, this often happens with foreclosures. If you need help with guidance through this process, please contact me.

Warm regards,
Melissa Mims
ReMax 360
0 votes Thank Flag Link Fri Apr 19, 2013
No it's not a common practice that the seller asks for another prequalification. One prequalification should be sufficient. Not sure why the seller would be asking for another one. I've never been asked to pre qualify someone more than once.

Anna Maria Durr, NMLS 266699
Codemark Financial
2626 Richmond Ave., Houston, Texas 77098
281-592-0667, anna@codemarkfinancial.com
0 votes Thank Flag Link Fri Apr 19, 2013
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