Pre-Qualifiction vs. Pre-approval

[Philip C.]

So, I've reached out (given my 810 credit score and shared my income, low debt, etc.) to various lending companies and brokers and learned that nobody "pre-qualifies." They all suggest going straight for "pre-approval." It's my understanding that if you apply for pre-approval with several lenders, it's best to have them all perform a hard credit pull within a 2-week span, to avoid it affecting your credit. Any thoughts?

Also, if I do decide to apply for pre-approval with several lenders to compare rates and plans, how long before the pre-approvals expire? And if they do expire, what would I need to do to get an extension?

I'm determined to buy a property in the next few months, but I will need enough time to analyze them with the BP calculators to ensure I get the right deal. I thought getting pre-qualified was the first step? All thoughts and ideas toward the next step are welcome! Thank you. - Philip

[Bob Woelfel]

@Uneeq Khan couple things here. I'm an agent and lender so I see it from multiple sides. Maybe your market is hot and they don't want to waste time with a buyer that may or may not qualify. They have no idea what you can or can't afford and until you get pre-approved you probably don't either. It also shows that you are serious...someone who doesn't want to go through the process to get approved doesn't seem as serious about it as someone who does. Another wrinkle to your plan is you are also wanting to BRRRR, which is fine but you are asking to see properties that need renovation work and wanting to use 203k or Hard Money loans. The agents don't know if you are capable of handling this and you don't have a pre-approval letter for either of those options as well it sounds like. I would highly suggest you get approved, either from a traditional lender or a hard money lender. I wouldn't worry so much about them pulling your credit multiple times as lenders see this and know what it was for. That's what your credit is for in the first place...to allow you access to buy things. Stop worrying so much about a couple point hit when it allows you to accomplish your goals. Good luck.