Should I get a loan pre-approval before I go see homes?

You’ve decided to buy a home. Time to go see some homes now, right? Not so fast! Before you start shopping for a home you really want to have a loan pre-approval in plan. Why look for a home if you aren’t sure how you will pay for it?

This loan pre-approval step is one that people often try to skip. I know, it’s more fun to pick out a house than to talk to a few lenders but it is critical.

Top 3 Reasons to get a Loan Pre-Approval before your go home shopping:

  1. You may not be qualified to buy a home in the price range you want. Nothing is worse than a buyer who is excited to buy a home but finds out they can’t because of a credit issue, an employment issue or a down payment issue. Find out up-front that you are qualified and get a solid financing plan in place so you know how much cash you need and what your monthly payment will be after taking into account the loan, taxes, insurance and any HOA fees.
  1. You need the pre-approval to be taken seriously by sellers. Imagine you find your dream home and you submit an offer only to find out there are 4 other offers. (a common scenario!) How will the seller pick between the offers? One big factor is how strong each one looks from a financing perspective and if they can sense that you are not prepared your offer will not be considered. (Quick Tip: What matters is that we can show the seller you are strong, not that you know you are strong. They don’t know you or your financial background. Get a strong pre-approval!)


You have to do it later anyway, so why not do it now rather than later when you’re busy planning your move? Either way it must be done, so get it done first and then you can focus on finding your home and making your move.

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