Do I have to have pre-approval letter just to see the property?

I'm planing to buy a property so I got a realtor who said that he has a few properties but would not show them to me unless I have a pre-approval letter. Is this normal? Is this a must?

If this is normal or a must... Are there any other whys around it?

I would like to see those properties first before I make a decision since it will have effect on my credit score if I do run a credit report to get the pre-approval letter.

I guess the realtor does not want to waste time if you are not qualified to purchase the house. You are in competition with other purchasers and when it comes time for the seller to make a decision, it is in your best interest to be able to present them with the pre-approval letter. I dont know if all realtors are looking for the pre-approval, but you will go to the head of the class if you have one. The only other way is to go to open houses without a realtor. Eventually, you are going to need a pre-approval letter. The other good thing about running the credit, is that you know exactly what is going on with your credit, and if there is a problem or something you did not know about, you are finding out now, so you can clear it up, before you find the house of your dreams and someone else has a clear pre approval. It is really not a big deal, you can get one in a day or two. We had one drawn up for us, just for that purpose.

The Realtor's rule is not a law, but merely his own business policy. As a Realtor I agree with it 100% and do the same thing.

Why? Put yourself in your Realtor's shoes. He/ she takes time out of his day to show you different properties, often driving you around on his/her dime only to discover later that it was a complete waste because the buyer couldn't get a loan.

There is no effect on your credit report to run your credit, unless it is run again and again. And, if you believe that your credit is so close to the point that it risks your ability to get a loan at all, you likely won't get one anyway.

You can likely find a NEW Realtor who hasn't yet learned this time and money wasting activity, after all there is a sucker born every minute.

Linkus is right on here.

It is not a must, but there are so many people that want to look at property that don't have a prayer of getting a loan, or aren't really serious about buying. With all the people shopping, I have to weed out the tire looky loos and devote my energy to those who are looking to buy, not looking to look.

Sure there are ways around it, find someone who doesn't care if you have a pre-approval letter.

You are going to need a pre-approval to write an offer anyway, you might as well get it done now.

Some realtors require this because they don't want to spend a lot of time driving a client around if there's no chance he/she could actually afford a house.

It's pretty easy to get a preapproval. They only need basic info and a recent pay stub.

The condition that anyone who sees a certain property must be pre-approved is something the seller specifies, and it's perfectly within the seller's right to do this. As someone who just sold a house, I can see the attraction. Who wants strangers who are not serious buyers to traipse through your house?

If you're serious about buying a property in the near future you will have to get a pre-approval letter sooner or later, so why not now?

yes, you must have a preapproval from ur lender, that tells them that u are serious and can actually afford to buy a house....and arent wasting the realtors time....there is no way around it....but its easy to get pre-approved....just go to the place u want to be ur lender and they just ask a bunch of questiions takes like 30 mins and u leave with the letter and amount.....i dont see how if a lender runs ur credit it will effect the score......they have to run it....it didnt effect mine when i was preapproved about a year ago....

I've never heard of a Realtor requiring a pre-approval letter to show properties to someone. Call a different Realtor. If the properties are in the multi-list then any Realtor can show them. I'm guessing this Realtor has wasted his time before showing properties only to find out the buyer can't qualify for a loan so he has decided to require pre-approval letters. Call other Realtors and you should be able to find someone who will show you property without a letter.

No you don't have to have the pre-approval letter but it nice to know how much money you can spend 1st so you do you don't fall in love with some thing you can't have

No
As an FYIâ€¦ per the Federal Trade Commission (FTC) http://www.ftc.gov/freereports , there is only one source for you to get a free credit report from all three credit repositories, â€œannualcreditreport.comâ€. https://www.annualcreditreport.com/cra/index.jsp

Do not give anyone else your personal info without seeing them in person.

Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (itâ€™s not advice, its advertising), if they are not local to you and you canâ€™t get to them within 1 hour donâ€™t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.

Remember Buddha's advice:
"Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (itâ€™s not advice, its advertising). Don't buy "it."

When shopping for a mortgage, here are a few things to do to maximize your savings and time:
1. When asking for a Good Faith Estimate(GFE), tell each mortgage originator (lender) what interest rate to use so you can compare apples to apples (rate affects closing costs). This is probably a different thought process for you because you always shop interest rates on a mortgage right? Remember all mortgage originators have identical wholesale interest rates. If you shop the same interest rate among mortgage originators, it levels the playing field and discloses what they want to charge you for their time to originate and close your mortgage. It is similar to shopping for a car. Why does the exact same new car vary in cost from one dealership to the next? Some dealers want to make more profit than others.
2. Secure Good Faith Estimates from various mortgage originators within a 4 hour time frame (rate and pricing can change daily and even multiple times in one day).
3. Do not compare the prepaids, reserves, escrow, title charges, and government recording sections of the estimates; third part fees are not controlled by the mortgage originator.
4. Ask each mortgage originator to base the interest rate on a 30 day lock unless you need longer.
5. If the loan allows you to waive escrow (paying taxes & insurance yourself), let the mortgage originators know because this will affect closing costs.
6. If refinancing, let the mortgage originators know if you are pulling cash out. A cash-out refinance usually increases closing costs.
Your Biggest Challenge
The mortgage industry today has never been more unethical. The industry has produced several record-breaking years in a row regarding total origination and as a result, greed is driving the industry. Your biggest challenge is receiving a Good Faith Estimate that is provided to you in "Good Faith"! We spend more time showing consumers how mortgage originators are lying to them in regards to an estimate given! Thatâ€™s right, lying! â€œBait and switchâ€ has become a prominent sales tool in the mortgage industry. Bait you in with a bogus estimate then switch things after you are hooked. This is so discouraging; banks and so called direct lenders have become some of the worst at this practice. Education is your biggest weapon against this practice. Take the time to fully understand closing costs and rates before proceeding.
You should know exactly how much the mortgage originator is getting paid by all sources (no matter where it comes from, it's ultimately coming out of your pocket). Protect yourself by asking for and receiving prior to application and origination a written guarantee stating the TOTAL amount of compensation (YSP, rebates, commissions, kickbacks) that will be received and kept by the mortgage originator. This will help assure that your best interest is kept in mind.
Originating a mortgage is a service, not a product; compensation should not be based on the loan amount or interest rate.
All ethical, honest, upfront, transparent mortgage originators will be more than willing to provide you with a written total compensation guarantee in addition to the (GFE) Good Faith Estimate (focus on the word â€œEstimateâ€ because that is exactly what it is, an estimate of charges) prior to originating your loan.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy