When should I get pre-approved for a loan ?

Question

Hi, I've recently been looking into loans, and approval for loans. The one question I have yet to get answered is when should I go to a lender to get pre-approved. I plan on buying my first rental property towards the end of 2023, and I'm not sure when would be the best time to get approved. Is there a time frame for which you have to act on a property from when you get approved ? The one thing I don't wanna do is rush this process !

Jack Tulloch · Answer

Colby - as others mentioned, you will want to wait until you are ready to start making offers that way your credit report will still be valid upon closing (90-120 days is generally the accepted time frame for credit reports being valid).

Kristen L Garner · Answer

I would recommend interviewing and picking a lender now.  A lender can pre-review your docs (without pulling credit) and help you know what documents you are missing. Generally pre-approvals are good for 90 days.  They are easy to renew after that point.  So, getting pre approved 90 days or less from when you start making offers is a good timeframe.  If most of your documents are on file and all that is left is a credit pull...the pre-approval should be quick and doable in 24-48 hours. Best of luck!

Bob Willis · Answer

Do it just before you are getting ready to make offers. That way both you and the seller know you are ready and able to purchase.

William Broxson · Answer

Wait until closer to the time you wish to purchase. Do not wait until you find the right property for all we know that could be Sunday afternoon and getting an approval, while not impossible but more difficult for sure over the weekend. Ask the lender how long your approval is good for. Ohio is 60-90 days not sure if its different elsewhere.

Dave Skow · Answer

@Colby Zeller- good  question ...I would recommend  getting pre approved  now ( if you are in a position to  do so )   just to make sure you are approvable and also so you can educate yourself in the process  ...the process is  free .......if there are any issues  or  items that need to be fixed - you will have time to  repair them ......I would then  contact the lender you use  2-3 months  before you  plan to begin looking at properties

Jay Thomas · Answer

It's always a good idea to have your finances in order when it comes to making an offer. That way, you can move forward with confidence that you are able to make the purchase should your offer be accepted. Taking the time to get ready before moving forward will ensure a smooth and successful transaction. Good luck!

Harrison Chow · Answer

It is generally a good idea to get pre-approved for a mortgage loan before you start looking for a property, as it can make the home-buying process go more smoothly. Pre-approval involves a lender reviewing your financial information and credit history to determine how much they are willing to lend you. Pre-approval can also give you an idea of what price range you can afford and can make you a more competitive buyer in the market.

There is typically no time frame for when you must act on a property after getting pre-approved for a loan. However, it is important to keep in mind that pre-approval is not a guarantee of financing, as final approval for a mortgage loan is based on an appraisal of the property and a review of your financial situation at the time of the loan application. Therefore, it is important to act quickly if you find a property that you want to make an offer on, as the lender will need to reevaluate your financial situation and the property before granting final approval for the loan.

Let me know how I can help!

Mike Eichler · Answer

As soon as you are ready to start to make offers is when you want to get preapproved. You won't know how much "house" you can afford without getting one. Preapprovals are usually good for a while after you receive one.

I hope this helps. Let me know if you have any more questions.

-Mike Eichler

Colby Zeller · Answer

thanks for the helpful comments, sounds like I should still wait until I have enough capital, and to when I'm close to making offers

Eliott Elias · Answer

Your pre approval usually lasts for 3 months until they have to run your credit again.

When should I get pre-approved for a loan ?

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