Pre-approval before selecting lender?

[Craig Cerny]

Numerous pod casts have indicated having pre-approval will show agent and perhaps lender your a serious contact as your using BP agent finder to establish a team. I don't yet know the lender I plan to establish a relationship with and frankly don't know the financial instruments I will ultimately leverage, does it make any sense to get a pre-approval now as I'm establishing a team? Note, a HELOC may also get setup to fund my deal and I'm not sure if getting one before pre-approval or vice versa would be a concern. Any thoughts?

[Dave Skow]

@Craig Cerny- thanks ...it will be wise to get formally pre approved with a lender before you begin actively property searching because 1) you will be prepared to make an offer if and when the opportunity presents itself 2) you will be aware and educated of the present numbers ( payment / cash needed / rates / fees etc ) 3) you will be organized ....regarding the HELOC possibility ...get one set up in case you need to use it ...if you end up not needing to use it - the new loan/ lender will not need to factor it into the qualification ratios ...if you end up needing to use it - the lender will factor in a hypotehtical payment for the amount you plan to use