Real estate agents don't want to waste time with people that are not qualify for a loan.
Look at it this way: Would you want to work for someone for a month or even more then that without eventually making money.
I don't think its fair for the real estate agent that is working so hard to find the right home and then drive you around until you will really like something out there, then suddenly understand that you can't even purchase a home at this time because of qualification issues.
You should just get pre qualify with any lender out there or let the real estate agent refer you to someone he worked with in the past and let the real estate agent feel comfortable to work hard for you and make you Happy.
First, don't listed to Dunes because he has no idea what he;s talking about. Sorry.
There is no RULE that you must be pre-qualified. But be very wary of any agent that would not make sure you are. All the real professionals that would be a good advocate for you and represent your best interests - they all know that they must first take care of themselves as well and make sure you are qualified. It sounds like this agent you refer to did a horrible job explaining him/herself however. And yes, agents are making sure they don't waste their time. And yes, that's a really good thing!! If you work with an agent that is running all over town with half of their clients unqualified, that's not good for anyone. And for your own good....the loan pre-approval process these days in not as simple as it once was. Before you go shopping, you want to be 100% sure you have the buying power to purchase and are ready to go. It's the absolute best way to start your home search. Good Luck!!
Why are so many agents soliciting the consumers here...call me, email me, I'll show you that property?
They don't know if that consumer is approved for anything or has any money. It's because they NEED business and that's a way they try to find it. Like showing a home.
Showing a property is a tool used sometimes to find buyers now or for the future. Any claim that there is some standard or test that has to be passed by the consumer to view a property seems slightly off.
I guess if you are doing so well that you can't handle all the deals you have going then having a screening process might be in order. Congrads to those agents.!!
The questions that pops into my mind....When Kenny does have a loan approved, why would he call that agent back? Are any agents doing so well that they can take that kind of gamble on a business opportunity?
Kenny, I stick with my move on, find someone else and go see the property....Dunes
...and the direct answer to that question is "No, it's not true".
A real estate agent may have many reasons not to show you, and the fact that you haven't been pre-qualified or pre-approved yet, may be among them. But there is no hard & fast rule or law that states you must be pre-qualified in order to be shown a property, and the fact that your agent lied to you, is enough reason, in my mind, to kick him to the curb and find someone more interested in YOUR needs than his own.
To answer your question, the answer is no. That could also be viewed in a discriminatory manner by a court.
He dosen't want to show you a house unless you want to make an offer on it? That's crazy.
Get rid of that real estate clown now.
Also, you should do your own reseach and due dilligence and start the mortgage qualification process now. Don't depend on trusting a realtor to walk you through the process without any of your own research. It would be preferable to keep them out of the entire mortgage application process. But if you do allow the realtor (who is not a finance professional) to assist you with obtaining the best mortgage quote, at least do your own independent research.
If an agent tells you what the above agent did, then move on and find another one it's as simple as that. There are many agents available and looking for clients.
Your responsibility is to be honest and not BS the agent. They have not been placed on this earth to show every curious person properties for free.
Armchair General, Dunes
The quick answer is We ( Realtors) want be sure our buyers are qualified. It is a huge waste of time to go home shopping with buyers that cannot buy because they are not qualified or not qualified for the amount they WANT to spend.
So Realtors Prefer buyers to have financial justification.
Despite all the I'm selling 30 homes a day talk many agents are desperate.. Go to activerain or any other site (This one included) and read the blogs, comments, ect... Lot of agents talking about nothing going on and formulating strategies sure to find someone to represent. No shortage of agents desperate for business. Find someone else, simple as that. Why should you on first contact prove something to someone you are hiring.
Ask them to prove something to you, like they actually know something........Agents use the word standard a lot, but it really has little meaning in this market.
I don't remember anyone ever stopping me in the grocery store to see if I was pre-approved or refuse to show me where the beer was or tell me the price without a loan approval. Why do stores have display windows?
I'll weigh in on this as well as a Realtor.
It's really easy for a interested buyer to throw out an amount they "think" they're qualified to purchase without getting pre-approved, which I've always found to be interesting. Buyer's need to put themselves in the seller's position and ask themselves- Is It fair to the seller for the agent to show the home to a non-qualified buyer? NO! The seller is looking for feedback on their home and definitely not looking for sightseer's. I agree with the agent below, to the buyer who doesn't want to receive pre qualifications.. they should visit open houses to get familiar with what's on the market.
It's like going to a car dealer asking to test drive a car they can't afford to purchase. I'm not really sure why buyer's think the real estate profession is any different. It's a business also.
To get pre-approved you need to fill out an application and provide some documents to your mortgage broker which could include: home address for the past two years, social security number, landlords for the past two years, name and address of employers for the past two years, w-2 forms, tax returns past two years w/ schedules, two most recent paystubs, bank statement past 3 months, checking , savings and credit union account numbers an locations, IRA/401K information and your mother-in-laws maiden name. You might also be required to provide debt info such as car payments, student loans, divorce decree or separation agreement, divorced personal debts, payments automatically drafted from your accounts along with an explanation for any late payments, judgments, liens to name a few. While these might seem lengthy all of them might not apply to you based on your situation and the type of loan your mortgage broker is trying to get you approved for.
To answer your question... no, it is not true that a real estate agent can not show you a house until you are pre-qualified with a lender, however it is true that some will not. It is also true that to take you shopping (which is what you are doing when you view homes) before knowing what your spending comfort level is, while it may be enjoyable for some folks is in truth potentially a waste of your time.
As for not wanting to show homes to clients until they are ready to make an offer on that home. That may be how some folks choose to do business but is not how I do it, nor how any of the folks I work with do either. The way that you have phrased the comment it reads to me that you are being told to go do your own legwork and when you have found what you want to contact the agent you mention to write the deal for you.
The truth is that a good buyer's agent will do a whole lot more for you than just help write up your contract. A good buyer's agent will do as much work before you cross the threshold of the first home you view as they will do after the offer is made and accepted. They will be able to tell you if the home is in distress (facing foreclosure or a similar situation), what the market is like and what the comparable homes have sold for. They will have also found out if the home has any other offers on it, will know how long it has been on the market and whether it has been on the market without selling before.
That being said, I have found that if I as your agent do my job effectively by learning what your wants and needs are, the amount of time spent walking through various homes can be minimized to the point where only two, three or four homes at the most need to be viewed in person before we write the offer for the home that is perfect for you.
Since you tell us that you are new to the process of home buying the best advice I can offer you is to interview agents you are considering working with and to select someone who you "click" with and who also knows not just the "what:'s" but also the "why's" of the transaction.
Thank you for asking the question. Good luck with your home search. Take care and have a great day!
Tisza Major-Posner, Realtor, IVPG Realty (909) 837-8922
As professionals, we get fingerprinted by the Department of Public Safety before we can even begin our careers.
The only way we can at least trace a person who wants to look at homes is through the prequalification process in which we kill 2 birds with one stone: the buyer begins the loan process, and the agent knows that he is working with a true buyer.
Although your agent is required to work in your best interest and for you; our code of ethics requires us to be fair to both parties, the buyer and the seller, too. A professional, high producer, highly experienced agent is worth hanging onto when you can see he/she will not bring just any person into a home where valuables can be assessed for a later break in. Does this make sense?
Getting prequalified first is a win-win situation for sellers, agents, and most importantly, you, the buyer. Buying a home is a process, and the very first step is to make sure you are eligible to get a loan. Looking at homes is exciting! But there are always open houses to go look at, and you don't need to pre-qualified, and you don't need a Realtor for that.
The agent has valid reasons why he can't show you homes until you get pre-qualified. . He is willing to give up his time, using up his gas and his car in order to guide you and help you find and buy your dream home. He has just one requirement as his standard of practice: please get pre-qualified. The bottom line is, the only reason why a person would not start the home buying process by going to a lender first, is because they aren't really buyers.
I believe most people are smart enough to use the mortgage calculators on line to come close to monthly payments. They can go to the Tax Assessor page to calculate the taxes for the year.
In the past it was the GREEDY banks that approved people for more than they could afford!
You need to find an agent you are comfortable working with. You should be able to ask your agent questions and expect reasonable answers. Every agent wants to show properties to a buyer who is ready to buy. Some people just take longer to make a decision! In this market things are selling in multiple offers so you really do need to be ready!
That isn't typical practice of all agents, but you should get pre-approval so you know what amount you can get a loan for and which homes to preview within your range. It's hard to guess without the pre-approval, and your agent will need it to submit an offer for you. He should also be able to recommend a good lender for you....has he? Call me if you need assistance!
In terms of professionalism and best practices...It would be in your best interest to know, in advance, exactly what you can afford to purchase, and to work with a true Professional Realtor for your home purchase.
P.S. If this agent does not have "time" to work with you...there are many of us who will!
It is not a rule or set standard of this industry for the agnet to ask you to get pre-qualify or pre-approved prior on taking you to the show the property.
now on the other hand the seller's agent could ask you to send in your offer with a Lender Pre-Approval letter. so you might want to ask your agent if that is the case.
We use a local lender that is very easy to get approved with, please see his contact info below.
American Guardian Home Loans
T: (949) 242-5215
T: (877) 242-5215
This agent could have handle this better. He could have pre-qualified the buyer in regular conversation.
Example: What do you do for a living?
How long have you been working at ()*^?
Those two questions qualify the job and the income depending on the type of job.
While an agent is not a mortgage broker and can't qualify them for a mortgage they can qualify them to view a house.Whether or not the buyer should be Pre-approved is one thing but there is also a better way to go about it.
Some good information below. I would like to re-visit your question from your perspective.
1. How would you feel if you fell in love with a home only to find out it is out of your reach financially?
2. Do you have the time to be led on a "wild goose chase" viewing homes that are either well below or well above your purchasing power?
3. If you fall in love with a home in the $1.0 million dollar price range and find out that you can only afford $500,000, will any home at the lower price ever make you as happy as the home at the higher price?
4. When you have made any major purchase in your life time (car, engagement ring, audio system, etc), did you set your expectations of what you wanted, then look at your finances, then shop around to get the best deal for the best price?
Buying a home is a major purchase, a major decision, and for many, a very emotional experience. Knowing what you are jumping into, before jumping, can make the experience much more joyful and fulfilling.
Now, regarding the agent you spoke with, obviously this person has a different communication style than you do. Do you want to spend the next few months of your life, sharing your major decisions, hopes and wishes with someone who, it appears, speaks a language that is foreign to you? Better to find out early that they may not be the best fit for you. What they might have been saying, although not in a language that was clear to you or to many of those who answered below is: (1) Find out how much you can afford. (2) Think about what you want in a house. (3) Communicate this clearly with the professionals who make up your Team (who will be helping you find and negotiate a great deal on your new home). (4) Then with everyone on the same page, lets get out there and find a home that fits your needs, your lifestyle and your pocket book. (5) And lastly, lets negotiate a great deal on this great home and make sure that you have a great loan to finance it.
If that sounds like what you want to do, feel free to contact me. Working together, we can make your goal of home ownership a reality. Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty.
As with all professions you want a person is serious about wanting to purchase a home, qualified is first step we dont want to show $1 mil homes person who cant qualify can only purchase $500K home. All sales offers are submitted with lender approval letters, if not your offer is not consider till mortgage approval is obtained.
Right now interest is low and asking prices are too. It's a great time to buy a house. Spend a little time learning about what financing options are available to you while you're familiarizing yourself with your market. And find yourself a Realtor who will look after your needs.