Why You Should Get Preapproved for a Loan Before House Hunting
In today’s competitive real estate market—especially around Lexington, Winston-Salem, High Point, and other Triad cities—finding your dream home is only half the challenge. The other half? Making sure you’re financially ready to make an offer the moment you find the right house. That’s where mortgage preapproval becomes your biggest advantage.
Imagine walking into the perfect home, falling in love, and being ready to make an offer—only to find out another buyer already submitted theirs, with a preapproval letter in hand. That scenario plays out all the time. In a fast-moving market like ours, buyers who skip preapproval risk missing out.
What Is Mortgage Preapproval?
Mortgage preapproval is a formal letter from a mortgage lender that confirms your financial background—income, credit history, monthly debts, employment, and savings—has been verified. It tells sellers and real estate agents that you’re not just thinking about buying a home, you’re actually qualified to do it.
This is not the same as prequalification, which is simply an estimate based on unverified information. Preapproval is based on actual documentation and results in a specific loan amount you’re approved to borrow. This gives you clarity on your budget and real leverage when making offers.
🎥 Watch: Why Preapproval Gives Buyers the Edge
Benefits of Getting Preapproved
• You’re a serious buyer – Sellers prioritize preapproved buyers.
• It defines your purchase price range – You’ll know what you can afford based on your actual financial information.
• It strengthens your offer – In a multiple-offer situation, having preapproval may give you the edge.
• It saves time – You won’t waste time looking at homes outside your budget.
• It reveals financial roadblocks early – You can address issues like credit errors or high monthly debts before they become deal breakers.
When Should You Get Preapproved for a Loan?
Before you even start seriously looking at homes. Most real estate agents won’t show houses without a preapproval letter in hand—and for good reason. You don’t want to fall in love with a home, only to realize you can’t afford it or lose it to another buyer while waiting on paperwork.
Also, preapproval letters have an expiration date—usually 60 to 90 days. So you want to time it around when you’re actively ready to begin your home search.
What You Need to Get Preapproved for a Home Loan
Getting preapproved isn’t difficult, but it does require a few financial documents. Here’s what most lenders or loan officers
will ask for:
- Recent pay stubs
- W-2s from the past two years
- Tax returns
- Bank statements (checking, savings, retirement, etc.)
- Employment verification
- Valid photo ID
- Credit history and score
- A list of current monthly debts (student loans, car payments, etc.)
Once your lender has this information, they’ll evaluate your debt-to-income ratio, creditworthiness, and overall financial health to determine how much they’re willing to lend you—and at what interest rate.
Preapproval vs. Prequalification: What’s the Difference?
Let’s clear up the difference between prequalification and preapproval
- Prequalification is a quick estimate based on unverified financial situation.
- Preapproval is a detailed review using verified income, credit, and assets.
If you’re serious about buying a home, preapproval is the stronger, more reliable option. Even the Consumer Financial Protection Bureau recommends preapproval for serious buyers wanting to be approved for a mortgage.
How Preapproval Helps in the Triad Real Estate Market
Whether you’re looking in Lexington, Kernersville, Thomasville, or Winston-Salem, preapproval is a game-changer. Homes in these areas don’t sit on the market long. Sellers are more likely to accept offers from preapproved buyers who can move quickly and close with fewer surprises.
You’ll also get a clearer view of your financing options, such as conventional loans, FHA, or USDA, and how things like your credit score and monthly debts affect your approval amount.
Bottom Line: Don’t Skip The Real Estate Preapproval Process
If you’re thinking about buying a house, preapproval for a loan should be your first move. It gives you clarity, confidence, and a strong advantage when competing for homes in a hot market.
Need help getting started? Reach out to one of our experienced agents at Mantle Realty. We’ll guide you through the process and connect you with trusted local mortgage lenders who can get you preapproved—so you’re ready to make your move.
Visit www.mantlerealty.com to start your home search or contact us directly to talk to a local agent for other real estate tips. Whether you’re buying your first home or upgrading to your next, we’re here to help every step of the way.
