Before you attend a single open house, get pre-approved. It is the difference between shopping with intent and shopping on hope, and in a competitive market it is often the difference between winning and losing a home.
Pre-approval versus pre-qualification
A pre-qualification is a quick estimate based on what you tell the lender. A pre-approval is verified: the lender has reviewed your income, credit, and assets, and has committed to lending you up to a specific amount. Sellers and listing agents treat pre-approvals as real and pre-qualifications as talk.
What the lender needs from you
- Two years of employment and income history
- Recent bank and investment statements
- Your credit report and any explanations for blemishes
- Tax returns or additional documents for self-employed buyers
What the pre-approval gives you
A realistic budget, a payment you can model with exact numbers, and the credibility to write an offer the day the right home appears. Paul recommends getting re-approved when rates shift significantly, and he connects buyers with lenders who answer questions instead of pushing products.
Start with the lender, then start the house hunt. That order has closed more than 500 homes in Paul's career.
Written by Paul Knighton
Paul is an Oregon Principal Broker and Idaho Associate Broker with MORE Realty, serving buyers and sellers across the Portland Metro and the Treasure Valley. He answers every inquiry himself.
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