When to get pre-approval for financing

[Steven Brown]

Hello all,

I'm beginning to house hunt for a tri/quadplex in Florida. The market in Florida is very hot and inventory is very limited. With that said, properties are going very quick. In most cases 24 to 48 hours. This will be my first investment so I'm curious as to when to get loan approval knowing this process could take months to find a great deal here and knowing loan pre-approvals typically only last upto 90 days. Do I have to keep getting approvals every 90 days to stay competitive with placing bids? This approach would create a hard inquiry on my credit and not something I would want to do. How do those with investment experience suggest I start? I plan to use a Heloc or refi (as of now) to use as the down payment and for any upgrades/repairs that are required and finance via a loan.

Thanks in Advance!

[Brad Jacobson]

@Steven Brown,

Most lenders will want to run your credit prior to giving the full pre-approval.  There are some lenders who have alternate methods that might not do a hard pull but either way, you need to get pre-approved now if you're serious about making a purchase.

As you mentioned, if the good properties are going in 24-48hrs, you need to have all your ducks in a row including a pre-approval and a great agent at the ready to walk you through the proper way to compete.  Getting the pre-approval will also motivate you and a good credit score that's never put to work is pointless!

Good luck!