There are a variety of reasons real estate agents insist that potential home buyers are prequalified prior to looking at homes:

1. It can be devastating for a buyer to fall in love with a home only to later learn that the payment is unaffordable or that the bank won’t offer a loan on that high of a purchase price.  It makes it very difficult to then find something less expensive when a buyer has already experienced an emotional tie to a superior home.

2. Becoming prequalified can take some time; lenders have become more cautious prior to issuing prequalification letters.   If you wait until the last minute, you will have needless pressure and stress.

3. Prequalified home buyers have a stronger negotiating position.  Home sellers represented by experienced real estate agents will insist on a copy of the buyer’s prequalification letter prior to accepting an offer.  When writing an offer, time can be a buyer’s worst enemy, as more buyers can materialize and a multiple offer situation occur.  

4. Loan programs vary and it is crucial that the buyer understand exactly which type of loan works best for their needs.  According to a recent article in the Los Angele Times:  New research suggests that buyers' minds are so taxed after they go through the ordeal of finding a house that they often rush into the next step — applying for a loan — and make poor choices.

Home Buyer's Resources:  Search the MLS like a real estate agent
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