Why Do I Need To Go To A Lender?


Let’s start back in the early 1990’s, I was selling a lot of FHA and VA Foreclosures and repossessed properties. They were just called Repos. I was a Certified HUD Broker and a VA Approved Real Estate Broker. Houses would come out weekly for inspection by potential buyers, then after a week, buyers would put in a bid on the property. The house went to the highest bidder.

The obvious question, how did the buyer get to place a bid. First the Buyer was directed to a Certified HUD Lender. The lender would process the buyer and his qualifications for a loan (much like what is done today). In fact I am still working with several of those lenders today.

Once they were approved and all provided information was verified in writing. The Buyer was qualified for a loan amount, then I could place a bid on a property on behalf of the Buyer up to that amount.

Now the tricky part, the lender had to guarantee to HUD, that if the Buyer’s Offer was accepted, they (the lender) would close the loan at the end of 45 days, not 44 or 46, but 45 days, if not they had to pay a daily penalty. It seemed to work very well for everyone.

In fact many of us in Real Estate liked it so well that we had our Buyers pre-approved for homes on the regular market. As a Listing Agent, I could tell my Sellers that this Buyer is Pre-Approved for a Home Loan. We in Real Estate, the Buyer and the Seller all enjoyed the Home Buying Process more with less stress on the transaction.

It worked so well, that after a short time it became the Real Estate Standard to the point that Sellers (at least my Sellers), would not accept an offer from a Buyer that was not Pre-Approved.

This is a long winded way around to say, this is why you must go to a lender before buying a property, to be Pre-Approved by a Reputable Lender. Just another reason why you need an Honest, Experienced Real Estate Broker to help decipher and help you work through this not so simple maze and process of Home Buying and Home Selling in today’s volatile real estate market.

Will the Home Buying or Selling Process be worth it? A resounding YES! Remember: “Real Estate is the only Limited Natural Resource, with no Alternate Resource Available”.

You Can E-Mail Me Any Real Estate Question, I Am Always Willing To Answer Or Help With Your Questions, Problems Or Concerns.

larry@robertsonrealtor.com or Call: 909.983.2892

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