Repeat Loan Pre-Approvals when House Hunting?

1 Reply


I found a real estate agent and am on the hunt for our second investment property. Yay!

I am starting to look for local lenders (hoping to use a conventional loan) and would like to get pre-approved for a loan. If I understand correctly, loan pre-approvals last for 60 days. I know that in this market, digging must be done to find a cash flowing property, so it could take months to find one. But I want to be ready to act quickly when I do find the right property.

Even if you understand that you may not find the right property for many months, do you still get pre-approved for a loan? And then once those 60 days are up, then what? Get re-pre-approved? I know that your credit doesn't take a huge hit when the bank checks your credit, but I would imagine that repeat checks every 60 days are not ideal.

How should I manage this issue?

Well when making offers a pre-approval letter does help, but it is not always necessary.  I know that repeat credit inquiries do hurt your score, even "soft" pings hurt it.  Try to find a lender that will give you the pre-qual again later without hitting your credit.  They can put whatever limitations they want in the pre-qual anyway, so they will inquire again once you get an accepted offer.

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