Real Estate 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.

Prequalified or Preapproved: Which Is Right For You?

By Nicole Johnson of New American Funding*
September 13, 2017
Originally published on September 12, 2017

(Photo courtesy of New American Funding)

This is it. You’re ready to make the move into homeownership. From all the online searching you’ve done, you know you need to get “pre-something-ed” to prove you are a serious buyer. However, which is it: prequalified or preapproved? Both sound good, but they serve different purposes.

Getting Prequalified

When you ask a Loan Officer to perform a prequalification, you can do it online, by phone, or in person. They’ll ask you to share information, often verbally, on your credit, your income; assets (savings, investments, retirement accounts the amount of equity you have in any real estate you currently own); and the amount of debt you owe.

It’s a conversation that helps establish some financial parameters before you start looking at and making offers on homes by helping you answer two key questions:

  • What price range should I be looking in when I start my search?
  • Am I ready to do this, or do I need to save more or pay down more debt?

While the process is useful, especially for first time homebuyers, it isn’t rigorous enough to distinguish you from the other attendees at an open house or when you request a showing. The reason is that the letter is based off something akin to a “best guess” by the Loan Officer, it’s not reviewed by an Underwriter, and doesn’t address the question that matters most to sellers, Real Estate Agents, and to you: Can they/we expect to be approved for the type of mortgage needed to buy this home?  To answer that, you need to be preapproved.

Preapprovals Open More Doors

The preapproval process is like a test drive before you submit your application for a mortgage. The Loan Officer and an Underwriter will verify the facts and figures you discuss, along with your credit history. This process can also help pinpoint things you might want to improve—or errors that you’ll want to correct—before entering the formal application review process. Loan Officers will also begin looking for mortgage programs that might apply to your financial situation. The preapproval process is more rigorous than a prequalification and because it is fully underwritten, helps ensure your home buying process with go more smoothly.

In addition to ordering your credit report, Loan Officers may ask for copies of:

  • Last year’s W-2s.
  • Current pay stubs.
  • Brokerage and other savings account statements.
  • Your monthly expenses.
  • A current mortgage statement and homeowner’s policy (if applicable).

Once you are preapproved, you’ll receive a letter to share with Real Estate Agents and sellers. After you have an offer accepted on a property, you will still need to officially apply for a mortgage. That review process will involve a deeper dive into the information you’ve already provided, as well as into the specifics of the property itself. Fortunately, having a preapproval also means faster service and turn times to get you into your home sooner, so the official mortgage application is likely to be easier than with just a prequalification.

Why Bother Getting Prequalified?

The prequalification process takes very little time or effort on your part. Any cost is typically limited to that of ordering a credit report. When you already have an idea of the area where you want to look and what type of home you can afford, skipping the prequalification step can make sense. Its best use is as a preliminary step for those who need a starting point.

By comparison, for most buyers, a preapproval is a step they shouldn’t skip. Having a letter from a lender that states you are preapproved can be especially helpful in neighborhoods where the existing home inventory is tight…and when the home you are looking at is perfect. Being preapproved makes it easier for the seller to accept your offer over that of a buyer that hasn’t taken this extra step.

*Article reprinted with permission from New American Funding. Licensed by the California Department of Business Oversight under the Residential Mortgage Lending Act – License #4131117 Broker Solutions Inc. dba New American Funding (NMLS #6606) Corporate Office is located at 14511 Myford Road, Suite 100, Tustin, CA 92780. 800.450.2010