Loan Approval + Market Knowledge = Successful Home Purchase
Real estate agents are not all the same. Sure, we can all get you in our cars, drive you around, unlock doors and preview properties. Some real estate agents will work with anyone who’s breathing sort of like lenders used to lend to anyone who could sign an application.
My business model is very simple… work with people I like and enjoy spending time with, make sure that they understand that my job is to guide them through the home purchase or home selling process, explain what is going on in the market place and make the transaction as easy and stress-free as possible so that they are so happy with my services that they will not hesitate to refer all their friends and family to me and of course, work with me when it comes time to buy or sell a home again.
I am pretty clear on how I work and who I will work with. I interview my potential clients just like they interview me to see if we are the right fit for one another.
Some clients I need to turn away and that’s okay. One of the reasons I will not work with someone is if they choose NOT to get pre-approved with a lender. Pre-approval is not an option. It is not something that I came up with to make my job easier or to guarantee a sale for me by tying a client to a lender.
No… loan pre-approval is necessary for a home buyer to ensure that all the lending conditions can be met prior to opening escrow and that they will not have any unpleasant surprises that can potentially cost them their earnest money deposit. And, to ensure that my clients understand how much they can afford and what that means to them on a monthly basis. A consultation with a lender and review and processing of all the necessary financials will give them peace of mind that they are looking in the right price range.
Loan approval is also a prerequisite in the Pasadena real estate market place to submitting an offer. An experienced real estate agent representing a seller will expect a full approval letter to be submitted with a purchase offer especially in a multiple offer situation.
If I do not advise my clients to get pre-approved, I would not be doing my job. And, I’ve been selling real estate for quite awhile to know the issues and problems we run into when clients do not follow the advice of their agent.
When new clients contact me, one of the first things I do is send them a list of my preferred lenders. The reason they are preferred is because they deliver results and do what they say they will do. When one of my lenders approves you, you are golden. Whether or not you decide to use them in the actual purchase of the home, that’s your choice. However, we have a back up plan should you use a lender that for whatever reason might not perform. Again, my job in protecting my clients.
Reason for this post is two-fold:
- If we work together to find you a home, you will need to get pre-approved for a loan before going out to view properties. Please do not argue with me (as a potential client has done earlier this week), I will not budge. This is a non-negotiable item. There are plenty of real estate agents out there that would spend several days and weeks with you without this pre-requisite. Not me… 🙂
- I had lunch with 2 of my favorite lenders, Ernest Tepman and Artin Babayan who have moved to New American Funding, a direct lender, which will enable them to put together loans in 15 days from start to finish! Yeah! Not only are these guys amazing, but now they will have way more control of the process than ever before. Here’s a quick interview I did with them earlier today:
By the way, I’d be remiss not to post a few photos of the fab lunch offerings that Gale’s in especially after reading this Pasadena Gale’s post from a local blogger today. Okay, this can’t be a totally boring real estate post… so enjoy:
And, if you haven’t been to Gale’s back room lately, you’ll be surprised to see that they’ve expanded by taking out what used to be their storage room and opening the room up to at least 6 more tables. I also hear that the bar will be expanded to accommodate a few more seats. Check it out!