Should I Get Preapproved Before Searching for My New Home?

Dated: April 24 2022

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Can you start your house search without a preapproval in hand? Absolutely - but while it’s not a prerequisite, getting preapproved should be the first step in your home hunting journey. Unfortunately, many homebuyers often feel overwhelmed by the preapproval process and they end up shuffling this crucial step at the end of their to-do list which could turn out to be a costly mistake!
Here are a few reasons you should get preapproved for a mortgage loan before you begin looking for your next residence:

Competitive Edge

In the current competitive real estate market, most sellers don’t want to waste their time with buyers who aren’t preapproved. That’s because knowing that your financial qualifications have been checked in advance gives the seller comfort that you have the financial credentials to back up the offer you’re making. Hence, they know your offer is less likely to fall through. 

Save Yourself Some Time

Typically, your preapproved mortgage amount will determine your price range. As such, it helps you determine which homes are a good fit for you to view. After all, you don’t want to fall in love with your dream home, only to realize that it’s completely out of your budget. Getting preapproved ensures you don’t waste your time searching for homes you can’t afford. 

Lower Surprises

Talking to a lender before finding your dream home will leave little room for unexpected surprises like a less than desirable DTI ratio or a low credit score. According to NAR, a high DTI is the cause of about 35% of mortgage denials while a low credit score results in 24% of denials. As such, not getting preapproved before the search could mean mortgage application rejection, and the consequent inability to buy the home you’ve been looking for.

You Should Get Preapproved Before Searching for Your New Home!

Getting preapproved should be the first step you take before you start searching for a home. If you still have doubts about whether you should get preapproved before searching for your new home, feel free to get in touch with our experts!

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Klaus Sinn

Are you looking for a Realtor who is listening to your needs? Klaus Sinn has been a leader in the real estate industry for more than 20 years. He is a fulltime Realtor, Team Leader and Mentor, and an ....

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