Which comes first? Pre-approval or finding and negotiating deals

5 Replies

Should I have a analyzed deal ready to show a lender before getting pre approved for financing or should I first get pre approved before wasting my time finding and negotiating deals knowing I might not get approved on a loan? 

I'd get pre-approved first so you know exactly where you stand and what you can afford. No sense in finding a deal and running numbers if you can't qualify for the loan to get the property.

Great advise above here. I’d also add that the pre-approval process will help you understand more about what lenders are looking for in both deals, and partners.

For me - this has been a discovery process where I start to refine my strategy as new information comes to light. I start to learn more from every lender I speak to as well as develop my networking skills and gain confidence in the process.

Originally posted by @Gerald Donaire :

Should I have a analyzed deal ready to show a lender before getting pre approved for financing or should I first get pre approved before wasting my time finding and negotiating deals knowing I might not get approved on a loan? 

 Commercial, the deal comes first.

Residential (which includes 2-4 unit), the preapproval comes first.

Make sure your purchasing power isn't limited by a lender not knowing how to consider rental income from the property you are looking at.