If a buyer walks into a real estate office with bad credit, no down payment,
dressed in torn jeans and a dirty T-shirt, they can expect to be treated
politely but be promptly ignored. It's like a penny in a parking lot; no one
bothers to pick it up.
Say the buyer has fair to good credit, some savings, and takes ordinary care
in getting dressed that morning. The buyer will find the same polite reception
and will also find realtors willing to work for them because almost no one
ignores a quarter on the sidewalk. Their calls will be returned and efforts
will be made to find them a property to purchase. The realtor knows there's a
pretty good chance a commission check is in their future.
A potential buyer walks into a real estate office pre-approved for a loan,
has a substantial down payment in the bank, and is dressed in a business-like
manner. Realtors will bump heads trying to pick up that dollar bill. They know
a commission check is in the works and will do whatever it takes to make the
sale.
All Realtors Hope for a Pre-approved Buyer
Fair to good credit raises your worth to the realtor, as does some savings
for the down payment. Dressing the part doesn't hurt either. First time
impressions do tend to last.
You can have all the right elements in place to impress; and yet, the
realtor doesn't know if you can get the financing to become a buyer.
A pre-approval letter from a bank or lender is the first-time buyer's ace in
the hole. It takes about an hour to fill in the blanks and up to a couple of
days to get the pre-approval letter. Your lending institution can steer you in
the proper direction. Walking into the real estate office with your
pre-approval letter lets the realtors know you are someone worth their time and
effort.