Why Top Real Estate Agents Never Complain About a pre-qualification Letter?
Being a real estate agent for more than ten years and also working as a mortgage loan officer has provided me with the advantage of seeing all the home purchasing process from different perspectives. A recent transaction I had with a very professional agent has made me think about the misconception that is in the real estate community about the pre-qualification letter vs. pre-approval.
A day after talking with this real estate agent my client’s offer was accepted among 31 other offers for this particular property, the interesting thing is that my client had a pre-qualification letter and got the property. This is proof that pre-approvals are not necessary when selling houses, the pre-approval process can be time consuming and sometimes unnecessary. So what is the driving force behind getting a purchase offer accepted?
During my conversation with this listing agent I notice she was very knowledgeable about the mortgage process and I was able to talk to her about mortgage processing and guidelines without compromising my customer’s personal information. Her attitude was about achieving win-win situations for herself and her buyer.
Top real estate agents have experience and characteristics that separate them from the rest. They don’t complain and use excuses like “my offer was not accepted because my client has a pre-qualification letter,” they use the tools they have and make them work for them, top agents expend their time in more productive activities like attending seminars and learning about mortgage products and the real estate market in general. Top real estate agents acquire the knowledge to communicate and negotiate with all parties involved in a real estate transaction.
A pre-approval is a decision made by the underwriting after they collect income documents and get credit report from clients, but an experienced loan officer should be able to do the same job and in most cases has more knowledge than the underwriting. But just to be fair and not put all the blame on some real estate agents, the experience and knowledge of a loan officer can also be a big factor in getting a quality pre-qualification letter.
There is no saying a pre-qualification is better than a pre-approval, they both have their own pros and cons, but the experience of the loan officer and the attitude of the real estate agent is the most important piece of the process. The letters are just tools, and a good worker can make do with any tool, and doesn’t need the most expensive tool to do a fantastic job. I believe that if the two industries (real estate and mortgage) took more time to understand each other they could provide a faster and higher quality service to home buyers.