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Updated almost 2 years ago, 01/04/2023

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55
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77
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Colby Zeller
77
Votes |
55
Posts

When should I get pre-approved for a loan ?

Colby Zeller
Posted

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 !

User Stats

229
Posts
138
Votes
Bob Willis
Pro Member
  • Investor
  • Curtis, NE
138
Votes |
229
Posts
Bob Willis
Pro Member
  • Investor
  • Curtis, NE
Replied

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.

  • Bob Willis
  • User Stats

    401
    Posts
    233
    Votes
    Zach Wain
    Lender
    • Scottsdale, AZ
    233
    Votes |
    401
    Posts
    Zach Wain
    Lender
    • Scottsdale, AZ
    Replied

    3-6 months before you plan to buy is my recommendation.  

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    User Stats

    466
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    577
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    Jack Tulloch
    Pro Member
    #2 Mortgage Brokers & Lenders Contributor
    • Lender
    • Austin, TX
    577
    Votes |
    466
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    Jack Tulloch
    Pro Member
    #2 Mortgage Brokers & Lenders Contributor
    • Lender
    • Austin, TX
    Replied

    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).

  • Jack Tulloch
  • [email protected]
  • User Stats

    62
    Posts
    45
    Votes
    William Broxson
    • Real Estate Agent
    • Youngtown Ohio
    45
    Votes |
    62
    Posts
    William Broxson
    • Real Estate Agent
    • Youngtown Ohio
    Replied

    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.

    User Stats

    427
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    270
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    Kristen L Garner
    Pro Member
    • Lender
    • Phoenix, AZ
    270
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    427
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    Kristen L Garner
    Pro Member
    • Lender
    • Phoenix, AZ
    Replied

    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!

  • Kristen L Garner
  • [email protected]
  • 213-880-0434
  • User Stats

    5,426
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    6,387
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    Remington Lyman
    Agent
    • Real Estate Agent
    • Columbus, OH
    6,387
    Votes |
    5,426
    Posts
    Remington Lyman
    Agent
    • Real Estate Agent
    • Columbus, OH
    Replied
    Quote from @Colby Zeller:

    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 !


     You can do it now. Just ask them not to do a hard pull until you are ready to make offers. It is good to start the conversation as early as possible though. I can introduce you to some good ones here in Ohio

    • Remington Lyman
    business profile image
    Reafco
    5.0 stars
    12 Reviews

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    Eliott Elias#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
    • Investor
    • Austin, TX
    5,546
    Votes |
    9,861
    Posts
    Eliott Elias#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
    • Investor
    • Austin, TX
    Replied

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

    User Stats

    55
    Posts
    77
    Votes
    Colby Zeller
    77
    Votes |
    55
    Posts
    Colby Zeller
    Replied

    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

    User Stats

    175
    Posts
    96
    Votes
    Mike Eichler
    • Realtor
    • Pocono Pines, PA
    96
    Votes |
    175
    Posts
    Mike Eichler
    • Realtor
    • Pocono Pines, PA
    Replied

    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

    User Stats

    289
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    361
    Votes
    Harrison Chow
    • Real Estate Agent
    • Columbus, OH
    361
    Votes |
    289
    Posts
    Harrison Chow
    • Real Estate Agent
    • Columbus, OH
    Replied
    Quote from @Colby Zeller:

    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 !


    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! 

    User Stats

    1,237
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    674
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    Jay Thomas
    Pro Member
    • Real Estate Agent
    674
    Votes |
    1,237
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    Jay Thomas
    Pro Member
    • Real Estate Agent
    Replied

    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!

  • Jay Thomas
  • [email protected]
  • 832-889-5607
  • User Stats

    2,616
    Posts
    896
    Votes
    Dave Skow
    • Lender
    • Seattle, WA
    896
    Votes |
    2,616
    Posts
    Dave Skow
    • Lender
    • Seattle, WA
    Replied

    @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 

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