As a realtor, getting your clients into their dream homes is your goal — but your clients have to be in the right position to land the home loans that they need. Enter: being qualified for their home loans! When you’re looking to help your clients get into homes they love, helping them to get prequalified — and then qualified — is extremely important.
However, there’s only so much you can do when it comes to helping your real estate clients get qualified for their home loans. Here’s our recommendation: essentially prequalify your clients to work with you, and then refer them to a trusted lender. Here’s what you need to know.
Do your due diligence with real estate prospects
Realtors know the feeling of finding a beautiful home that’s perfect for their clients, only to realize that their clients aren’t in a good enough financial position to even come close to making it work. There’s one way to fix this — and it’s to do your due diligence by effectively prequalifying your clients to work with you. Curious how? Ask these questions:
- What’s your current debt-to-income ratio?
- Do you currently rent or own? What’s your rent payment or mortgage payment?
- What’s your “why?” for moving homes?
- Is there any financial situation that I should be aware of before moving forward?
Next up: connect them with a trusted lender
Once you and your client have built a working relationship and are ready to move forward finding a dream home, refer them to a lender! A lender is the only expert around who fully knows and understands all of the details around the mortgage process, and they’re the ones who can effectively prequalify and qualify your client.
Your lender can lead your client into three main levels of approval:
In pre-qualification, the lender will obtain some high-level financial information about your client. Using the financial information from your client, the lender can make a surface-level (though not in stone) decision.
In pre-approval, the lender uses an official mortgage application to document and verify financial information from your client, the borrow. This level of pre-approval tends to carry more weight — though it’s still conditional.
Pre-underwritten approvals are the highest level of mortgage approval, and happen when the loan underwriter reviews the mortgage application and gives it a green light.
As a realtor, there’s nothing more important than having a trusted network of vendors around you — which is where VRMREA comes in! Learn more about our vendor network here.
The Importance of a Great Vendor Network as a Realtor When you think about the most important pieces of the puzzle as a realtor, you