I prefer to see a pre-approval before I spend much time with a client.

No, because I first want to get to know them and what they want to accomplish, and what they want to buy and make sure we want to work together. pre approvals and pre-qual are only as strong as the effort the loan officer has put into them. They both have contingencies.

Jennifer Provencio Pre-approval is a must!

I'm on board with those who know a pre-qual is worthless.  An actual pre-approval is what gets me to show properties to prospective buyers.  There are rare exceptions to this rule.

I try to have them get a pre-approval, let them know that if they find the perfect house etc today they would be a lot more ready to make an offer, they would know exactly what they can afford etc. Usually a serious buyer has no problem with it.

YES ! YES ! YES !  If a buyer goes to "the top of the mountain" which is a house they canNOT afford...everything they CAN afford is going to be not as nice....why set them up for failure ?

Pre-qual letters at least show good faith that they actually are planning to buy. Often, I have prospective buyers contact me but they won't take that step--in which case I cut them lose, unless they plan to pay with cash. Although I don't ask for proof of funds at that point, I do ask where they will get it. I also do some side checking, do they own a home now, what kind of loan do they have on it, look for equity. If they own a business. Where they work. Yes, I do this to protect myself. There are too many people "just starting to look". That's not good enough. They need to have a plan and then I can help. 

What ever the weight or thoughts on Pre-approval or Pre-qualify, I will not spend time with some one who does not take this process serious. I will not show property and take the chance the customer may be able to purchase.

Yes.  Here in Tucson, AZ pre-qual is written into the 10 page purchase contract (page 2). If it is a cash deal, I do not require proof of funds, but write it in that buyer to provide it within 48 hours to seller.   Getting pre-approved is for the buyer too, what is the best rate?  How much do they qualify for?  How much money down should they expect?  Loan terms?  etc, all things they should know.  I explain it like this to them:  IF we are gong to take a long road trip together, we have to make sure we have gas in the truck.   It is a must have, or I dont take them out.

Yes so we are not looking at the wrong priced homes.

No, I will meet buyers and go out with them once, then work with them to get pre-approed.

Pre-Qualified. No, These are worthless.

Pre-Approved must be what you are referring to in your question.

No. I do not require pre-approval before showing IF the buyer is a referral from my SOI. 

If the buyer is from an unknown, non-vetted source. you bet I will make arrangements to see a Pre-Approval. I will swivel the chair in my office to the right and say, "This is Fred with Movement Mortgage, and he will get you pre-approved right now. I'll step out and get us all some beverages."

Not always, but it depends on who reccommended them.  If they had a good reccomendation from a past client, I may show them a listing and ask them for a pre-approval during that showing.

Jennifer Provencio - usually, no. I work by referral and have pretty good idea about the buyers I start working with.

However, the first thing I want them to do is - get pre-approval.

9 times out of 10 I do require them to get pre-appoved before we look at any homes.  I don't want to waste my time, or their time for that matter.  Sometimes a buyer is adamant about not wanting to go through that process unless they see a few homes first.  If they seem like a great potential buyer I will agree to showing a few homes.  But after that I push them to get the pre-approval.

Yes I do unless they are one of my sellers that is buying and I am privy to most of their financial situation.

I will take them out one time without a pre-approval to see if we want to work with each other.  

Absolutely!  I do not want to waste a drop of gas until I have a Pre-qual letter.

I pre-fer but if I am not real busy I will take a chance with showing one time.   If they are serious...they will be at the bank the next day and I know I have good buyers,.

Yes.  

The majority of my Buyers pay cash so it doesn't come into it.

I refer them to a loan officer during the initial call. I go over their figures myself to confirm that they can qualify for the property of interest.

pre qual letter? or an actual approval...?

We do not because pre qual letters are not worth the paper they are printed on.  They are the information a buyer tells a banker without any further documentation.  Fairy tales.

We have the conversation at first meeting. If there is no pre-approval and buyers don't get one right away, to me it means they are not very serious or that there may be credit issues.

Yes don't waste your time

No, I don't. The clientele I attract is qualified 98% of the time. 

I always try to get a bank letter prior to showing any property, regardless of the listing prize.

Absolutely!

Typically yes, but there are exceptions under special circumstances.  With safety a top priority, pre-approval is another safety measure.

I will usually go out with them once just so I can get to know them a little better and see what they want to accomplish.

See if we are a good fit.

Also to let them know what all is involved in submiiting and offer and all the way to the closing table.

Good morning Jennifer,

Yes, always, I have them email me the pre-approval letter. Then I speak with the loan officer to make sure my buyers can buy the home of their dreams and the type of financing. It give everyone a better idea of the price point they can afford. Saves time for everyone. Cash buyers can send proof of funds unless I know them well. If none of the criteria is not met, none goes anywhere.

In most cases yes, but there are those you have total confidence in. It is important to discuss upfront what there financial situation is before making that decision.

Depends on the client. If it's someone I know or a past client, I will start working with them before they get a full pre-approval. If it's a complete stranger, I might show a couple of houses on the condition that they get an approval prior to the next "trip out."

Yes.  Pre approval and a buyers rep are a must.

Jennifer, In principle I am with you.  While originating loans, the heart of my presentation to REALTORS® was: 

1. Get the prospect to me ASAP  [I provided a one page pre-app that I asked the agent to oversee buyers filling out, so she knew I had a skelton application].

2. On the back was a list of required documents to bring to application.

3. I advocated "Do not put them in your car before you put them in my office."  [IF they were not ready to buy, I called the agent immediately].

Now, allow me to throw you a curve ball.  Yes, Pre-approval is what you want before taking a house off the market; but a true approval must come from an underwriter or an officer of the corporation, and that takes time.  Please note the first few words of this next sentence.  REAL LOAN OFFICERS [experienced] KNOW A BANKABLE BUYER WHEN THEY TAKE THE APPLICATION. They understand the basic elements of loan approval: credit, income, job stability, funds to close, residual income, and debt ratios.  They know what documentation they must review BEFORE they tell you the buyer will be able to secure financing.  Quickly, they recognize sufficient assets to pay-off a debt that bring ratios in line; and they understand "compensating factors."  Finally, the MLO knows the key to keeping your business is keeping your trust.  Were I still originating loans, and determined to to keep you happy, I would make sure you had the facts and my best assessment of the prospect.  THEN YOU DECIDE WHETHER TO SHOW THEM HOUSES.  I venture that seasoned REALTORS® with whom I worked did not wait on the underwriter to sign off before writing offers.  I am certain there were times when they should have waited, but if they were baseball players--they would be enshrined at Cooperstown.

Let me use Joe Petrosky to make my point.  Were we in the same market, I would call him and email the basic app info, along with paystubs, et al, ask him to call Mr. Prospect, run the numbers and pull credit, and let me know how it looks.  From there I will decide my plan of action.  Other factors weigh in on my decision that have nothing to do with Mr. Prospect.

No, of they are willing to meet me at my office and discuss what their expectations are.