They should be preapproved, NOT prequalified...big difference.

     I ask them where they bank (or what credit union).  I suggest they start there; I also give them business cards for 2 or 3 other lenders.

     If they do not have proof of funds (cash buyer) or a pre-approval letter, my company policy will not allow me to work with you.   (Exception:  last year of college or grad student, they have a job or career on the horizon, I will meet with them and preview a few houses in different price ranges).

Hi Dan - We rely on the help of a very competent and reliable lender. If clients aren't already qualfied, we refer them to her - but we'll still show them homes unless they won't pursue their financing in a timely fashion. And the ones that won't are generally the ones that can't.

I introduce those people to my local lenders to get them pre-approved. If they refuse to get pre-approved I don't work with them. But I don't refuse anyone who just hasn't been pre-approved yet.

I simply ask, "How will you feel when the house you really want is purchased by someone else because someone else presented a complete purchase offer?"

If this does not concern them, their motivation should be questioned and the agent should respond accordingly.

To use the word REFUSE may be to crude a term regarding what amounts to a client management response.

Understand the financing options and have reliable mortgage loan officers to recommend. You have to make it happen.

It can be a waste of time all around if you show property to someone who is not prequalified. Prequalification tells you what the buyer can afford - and in that way you don't show property that is beyond the price of the buyer. Also, the buyer doesn't become disappointed in finding out after the fact that their dream home is priced beyond their reach.

A lot of time is wasted by naive agents on dreamers without money, best not to be one of those agents.

If you find the home that you love, can you buy it?  If the answer is, no  or I don't know then we need to get pre-approved.  Not prequalified.  I had a mentor when I first started in real estate tell me, "I'd rather sit at home and watch TV than work for free".  

Dan Carpenter Once a lender is chosen, it is up to the buyer and lender to secure appropriate financing. Working with people who are not pre-approved can and is more likely a time waster.

To work with a buyer they must get pre approved, and sign a buyers rep agreement.  They also must be able to tell me why they want to buy, when they want to buy, and where they want to buy.

I don't "refuse" people who are not pre-approved.  I just do not take them on as a client. When they are ready, willing and ABLE to buy, that's when the fun begins.  You asked two questions, and that was my response to the latter.  The first is for the customer to seek a competent lender and get their pre-approval, preferably with an underwriter's stamp of approval -- and not an automated underwritting program.  But a real underwriter.  I work with lenders who have in-house underwriters and they are worth their weight in gold.

In our Seller's market, I will not take out a buyer unless they prove they have a loan, or proof of funds.   If they refuse, I don't take them out.

Yes.

Dan - Buyers come in contact with agents from across the spectrum of preparedness, so not every buyers knows the value of that pre approval.  It can take a bit of nurturing to get to the point where they are, so I don't go whole hog to show them everything on the market, but I don't turn them away either. 

Normally what I do is explain to them that if we go out today, you walk into a home, and have the "Oh My God" experience you won't have time to get all the information together before someone else that is pre approved ratifies an offer on the property.  Inventory around here is pretty tight for well priced homes in desirable neighborhoods.  That usually works.

I make sure they are pre-approved before showing properties.  That way when they find something to buy, they are ready to act.

We try to work with our clients and do get them qualified before driving a single mile with them

They do not get into my car unless that have been prequalified.

Every situation is different, but prefer buyers who are pre-approved!

I handle different buyers differently but a good way is to get them to come into the office and have your in house lender talk with them right there and then and if you don't have in house lender, have one of your favorite lenders also come to your office. I introduce the buyer's to the lender and let them know that we need to have a quick meeting to make sure we know what price range to shop in.  This usually isn't a surprise for the client as I told them ahead of time (most of the time).  I don't refuse anyone - I may or may not take them out to look at homes. But I help all folks that want help. I'm OK with putting in a little time with folks thay will be ready next year or the year after or maybe never but can and do refer others that are qualified. And like others have mentioned - pre-qual is great but watch your time investment until they are pre-approved.

If not already pre qualified, i work with them to get them pre qualified

I will show property to someone without a mortgage pre-approval in certain situations.  Timing, responsiveness and loyalty are important.  There are lender referrals if they do not have a client does not have their own mortgage professional.  

I encourage all clients to get pre-qualified.  And, I can recommend good lenders for them to call.

no one of my peeps will do any work with a buyer unless that buyer is pre-approved.... not just pre-qualified.... 

I always make introductions to my local preferred lenders to secure financing. I don't refuse clients that haven't taken that step..it's part of what I do ..help them through the process and find them a lender.

Get pre-approved.

Yes.

Our policy has always been that the buyer must be pre-qualified and pre-approved before we go shopping.  We don't refuse clients but instead educate them on the proper steps necessary if they want to buy a house.  If they are not willing to do that, they usually move on to an agent who will take them out without that.  

a) Never work with someone that's not prequalified unless you've confirmed they have cash.  Aka don't waste your valuable time.

b) Have a lender on call that's extremely responsive so you can get someone preapproved quickly.

Nope, but on the first meeting I point them to a Lender.

I refer them to a trusted local lender and delegate the work of getting them pre-approved - unless they already have a lender.  Then I'll honor that relationship.

I can provide some suggested lenders for them to call if they have not already gotten pre-approved. If they are not willing to take that step then that's a big red flag for me. I will show a few properties to buyers who, based on discussion, seem committed and serious and who are working on getting pre-approved.

I give them the name of a good lender. Typicallly I don't work with buyers who aren't prequalified.

I do not refuse clients that are not qualified, but they have to get qualified if they want me to show more houses

I only accept in state loan person sometimes only the ones I know.

On loan broker local only.  I call making sure the buyer is strong.

I will work with people that haven't talked with a lender yet. I give them the names and numbers of several area lenders. I have sold homes doing it this way. Some buyers just don't know where to start. 

It's not up to you to make sure the financing they've chosen is right for them. That's for the buyers and their lender to work out. 

I meet for a first client consultation regardless of preapproval. If they do not have their preapproval done, I'll send the information of my preferred lender or wait for them to complete the process with theirs. 

There are many important ways to qualify a buyer, pre-approval with a lender being one of many. I am not familiar with your market, but in mine (CA Bay Area) it is important buyers are pre-approved before seriously looking and submitting offers. I like the analogy of going to Best Buy with a gift card - sure you may want the new flat screen tv and spend hours talking to the sales rep, but when you go to the checkout you find out you can only afford some headphones. That said, there is plenty you can do to help them understand the market and encourage them to visit open houses to get a feel for what is out there and what type of propery/neighborhood they would love to call home.  In the end, part of our role as buyers agents is to educate them on the process and help them find financing solutions, many (the majority) of my buers come to me without financing and I help guide them through all the steps to close. 

As I tell my clients, lenders never say "No," but sometimes they say "Not now."  There's no point in working with a buyer who can't afford to buy.  Sometimes they work on their credit and come back to me, a year or two later.

Yes I do because in my lifetime I have found that the people that use the words 'no problem' have the biggest credit problems. No paper saying you're pre-approved - then I don't show homes.

Doesn't make sense to shop for something that you don't even know you can afford does it?

This is not the mall - this is not a car dealership ....

I can offer referals of a few lenders, so they can make the decision of with whom they would like to work.  However, I won't show them homes without knowing, from a lender, their bottom line.  Otherwise, it is a waste of time.  I would be taking time from other eligible (wiliing/able) buyers who may be ready to buy.

Window shopping is time consuming. Shopping to buy is another story. Buyers have to be vetted so they can pull triggers. Agents need to get paid

If a buyer is not financially qualified I don't consider that person a buyer at this time. Now they may be able to do some credit repair, save for a downpayment, pay down debt or get more income and that could change the picture. I do not show unqualified buyers houses but spend time with the ones that are. I will stay in touch however so when they have their situation straightened out I can assist.