Preapproval or find the deal first?

[Jonathan Feliciano]

Hi BP,

Im curious to ask all you real investors out there:

After you made your decision to buy a home, do you first search for the deal, or get a pre-approval letter from a lender?

[Kyle J.]

@Jonathan Feliciano It’d definitely be easier if you got the pre-approval letter first. Not sure how quickly homes are moving in your market, but I know in mine, it’s so hot that a property would already be under contract if I waited to get a pre-approval letter until after the property came on the market and everyone else already saw it and put their offers in. 

Also, some (not all, but some) Realtors won’t even work with you unless you have either a pre-approval letter (if you’re buying with a loan) or proof of funds (if you’re buying all cash). They basically just want to make sure you’re a serious buyer who’s capable of closing so they don’t waste their time (or their client’s if they’re the listing agent).