“I am pre-QUALIFIED to buy a home why are you asking me to get pre-approved?! I just want you to take me to go look for a house we are so excited to see what is available”.
Misconceptions about the “order” of things can plague a Realtor through out their career. As a broker, you will have to explain the difference between pre-qualify and pre-approval countless times. So many times that it will be redundant and frustrating. The reason it is frustrating is because it is so obvious that the process starts here. You think: “Why would a potential buyer think they should go look for homes before they know how much home they can afford?”. Of course you think that. It is a logical first step in your reality. Not always the case with potential buyers, especially first time buyers. Getting pre-approved for a specific loan amount brings a persons entire financial picture into the light. Every “blip”… Every ounce of debt. For the consumer this can be intimidating. It can feel like a “facing the facts” moment of what their financial story says about them. ...