Pre-Approved Loan first?

[Alexander Bustos]

Starting out, do you need to go get a pre-approved through a bank or lender before looking for your first house to flip?? Or do you find the house then go get approved? I heard that if you don't have pre-approved most realtors will not want to show you houses b/c you don't have any "money " or proof.

[Mary B.]

If its a owner-occupied property that you are going to live in and if you are going to use conventional financing than its required to get a pre-approval letter in most cases. However if you are not going to be living there and its strictly an investor's purchase then conventional lending is very likely not an option and you will need to seek hard or private money to finance the purchase then do that and secure the verifiable proof of funds first. Either way you will need the pre-approval letter or POF prior to getting the contract. However it doesn't stop you from making offers beforehand. You need the letters once your offer is accepted and you want to put it under contract. While you are making offers you can simultaneously shop for financiers.

Kudos,
Mary