Financing

A Real Estate Agent’s Guide to Working with the Lender

By Ryan World
October 2, 2026

Working with a qualified buyer involves more than getting a pre-approval letter and starting the home search. A good working relationship between the real estate agent and lender can help identify potential issues early, keep the transaction moving, and avoid surprises as you get closer to closing.

As the agent, you don’t need to know every detail of the lending process. But you should know which questions to ask and when. Here are some best practices to follow from your first meeting with a buyer all the way through funding.

Start With a True Pre-Approval

When you first meet with a potential buyer, ask if they have been pre-approved by a lender. If they say yes, don’t stop there. Dig a little deeper.

Ask whether they submitted income and asset documentation and whether the lender ran their credit. Some buyers believe they have been pre-approved when they have actually only been prequalified based on verbal information that hasn’t been verified yet.

That distinction matters. Once the lender verifies the buyer’s documentation, what the buyer actually qualifies for could look very different.

Before you invest time showing homes, make sure your buyer has gone through a thorough pre-approval process.

Know What Your Buyer Qualifies For

Once your buyer is pre-approved, communicate directly with the lender. Confirm the maximum sales price and the type of financing the buyer plans to use.

This is especially important because not every loan program works with every property.

For example, if your buyer is using FHA or VA financing and is interested in a condominium, you’ll want to determine whether that property meets the applicable financing requirements before getting too far into the process.

Knowing the details upfront can help you focus your buyer’s search on properties that are a realistic fit.

Before You Write the Offer, Call the Lender

You’ve found the house, and your buyer is ready to write. Before submitting the offer, call the lender again.

Give them the subject property address and property type to confirm the loan program works for that property.

This is also the time to discuss timelines. Ask how much time the lender anticipates needing for the appraisal, loan approval, and funding. Different loan programs and individual borrower circumstances can affect those timelines.

Don’t automatically plug standard dates into the offer. Talk to the lender first, so you know what is realistic for that particular buyer and loan.

Once You’re in Contract, Don’t Wait

As soon as you have a fully executed Residential Purchase Agreement (RPA), send it to the lender along with the Buyer Representation and Broker Compensation Agreement (BRBC), as applicable.

The sooner the lender has the necessary documentation, the sooner they can begin working toward the important financing milestones in the transaction.

And don’t assume that no news is good news. Stay in communication with the lender throughout the process.\

Check The Appraisal — Not Just the Value

When the appraisal comes in, there are a few important questions to ask.

The main ones being: Did the property appraise at an acceptable value? Did the appraisal come back “as is”?

If the appraisal is subject to repairs or other requirements, those items may need to be addressed before the loan can move forward. Finding that out quickly gives everyone more time to determine the next steps.

“Loan Approved” Doesn’t Mean You’re Done

Hearing that the loan has been approved is great news, but don’t assume that means the transaction is guaranteed to close.

Initial underwriting approvals typically come with conditions. Some may be relatively simple, such as providing additional documentation or a letter of explanation for an old address on a credit report. Others can be problematic, such as resolving a judgment or lien against the buyer.

Ask the lender whether there are any conditions that could be concerning or potentially affect the transaction timeline.

Keep Checking in Until Funding

As you approach closing, keep communicating with the lender and confirm the remaining milestones are on track.

Check on the status of the Closing Disclosure, final loan documents, and funding. There may also be mandatory waiting periods that need to be factored into the closing timeline.

The finish line may be in sight, but this isn’t the time to stop paying attention.

Final Thoughts

A good lender is an important part of your buyer’s real estate team, but a good agent doesn’t simply hand the buyer off to the lender and wait for updates.

Stay involved, ask questions, know the important deadlines, and keep the lines of communication open throughout the transaction.

When the agent and lender work together from pre-approval through funding, they’re much more likely to identify potential problems early, manage expectations, and keep the transaction moving toward a successful closing.

Ryan World is a Loan Originator with World Mortgage Group, a division of Golden Empire Mortgage, NMLS# 1164750. For more information about home financing you may contact him at (714) 569-3636 ext. 2 or email rworld@gemcorp.com.

Pre-Qualified vs. Pre-Approved: Which is Better for your Buyer?

By Joe Lins
August 21, 2024

In the home buying process, having your buyers understand the difference between being pre-qualified and pre-approved can significantly impact their ability to secure the home of their dreams. While both terms are often used interchangeably, they represent different levels of financial readiness and influence how seriously sellers will consider their offer.

During a recent episode of Market Matters, I talked with Ryan World from World Mortgage Group about this topic. Here’s what your clients need to know about pre-qualification and pre-approval and why one might be better for them in today’s real estate market.

Ryan World and Joe Lins – Market Matters Interview

What is Pre-Qualification?

Pre-qualification is often the first step in the mortgage process. It involves a simple, informal conversation between the buyer and the lender. According to Ryan World, this step gives them a basic idea of what the buyer might be able to borrow based on the information provided, such as income, assets, and debts. However, it’s important to note that pre-qualification doesn’t involve any formal verification of their financial status.

“Pre-qualification is just a verbal conversation,” says World. “I’m not a huge fan of it because it doesn’t give me everything I need to figure out how high of a sales price they qualify for or what loan programs they qualify for.” In essence, pre-qualification is an estimate—it’s helpful for getting a rough idea of their buying power but lacks the certainty that a more formal process would provide.

What is Pre-Approval?

On the other hand, pre-approval is a much more thorough process. It involves a detailed review of the applicant’s financial situation, including a credit check, verification of income and assets, and a more in-depth assessment of the applicant’s ability to repay the loan. This process results in a pre-approval letter, which the applicant can present to sellers as proof that they are a serious and qualified buyer.

“Pre-approval is much stronger,” explains World. “I look at their income documents, I look at their asset documents, and then we sit down and go over what they qualify for. This is all accurate stuff.”

Having a pre-approval letter in hand gives them the confidence to make offers and makes that offer more attractive to sellers. This can be the difference between securing the home they want and losing out to another buyer in competitive markets.

Why Pre-Approval is Often the Better Choice

When it comes to buying a home, pre-approval is typically the better option. As World points out, sellers are more likely to favor buyers who have been pre-approved because it shows that they are financially prepared to make a serious offer. Without pre-approval, they may struggle to compete against other buyers who have taken this step.

Moreover, pre-approval allows them to act quickly when they find the right property. Instead of waiting to go through the approval process after making an offer, they can move forward with confidence, knowing that their financing is already in place.

Final Thoughts

At Century 21 Discovery, we place a strong emphasis on strategy. Whether your clients are buying now or planning for the future, getting them pre-approved should be a key part of their homebuying strategy. It strengthens their offer and gives them peace of mind, knowing exactly where they stand financially.

If your client is considering purchasing a home in the next year, it’s never too early to get them pre-approved. If you need to connect them with a trusted lender, I highly recommend Ryan World and his team at World Mortgage Group. Here’s their contact info: Ryan World: 714-569-3636 Ext. 2

Joe Lins

About the author: Joe Lins is President, CEO and Co-owner of CENTURY 21 Discovery. If you are interested in becoming part of the CENTURY 21 Discovery team or would like more information about our services, training and coaching we provide, contact Joe at 714.626.2069.