Bank approval, responding to ads/giving offer, which first?

**gerard** · 08-04-2009, 08:06 PM

When responding to some listings, I was always asked "have you been approved for loan yet?" But if you first go to the bank to get approval, don't you need to have the house price already? Or do you get the approval before you set your eye on a particular house?

**jamesww** · 08-04-2009, 11:47 PM

Originally Posted by gerard

When responding to some listings, I was always asked "have you been approved for loan yet?" But if you first go to the bank to get approval, don't you need to have the house price already? Or do you get the approval before you set your eye on a particular house?

You should get preapproved prior to looking for a home. You should ask for both the max loan amount you can be approved for and what loan amount will put you within your monthly budget range. If you do not have a budget yet you need to sit down and create one so you do not get yourself over your head.

**Greg** · 08-05-2009, 05:18 AM

If you are referring to a duty call then you might be chasing some of them away. When you get the call you should be trying to get warm and fuzzy with the potential client.

Save the financial questions for later after you have developed a report with them and they want to work with you.

**tucsonhomes** · 08-06-2009, 11:20 AM

Originally Posted by gerard

When responding to some listings, I was always asked "have you been approved for loan yet?" But if you first go to the bank to get approval, don't you need to have the house price already? Or do you get the approval before you set your eye on a particular house?

Why would YOU be responding to a listing?

You should be talking to some real estate salespeople to determine who you would like to work with. Once you HIRE someone, they can fully guide you through the process.

**Greg** · 08-07-2009, 06:15 AM

Sorry, I misread your question.

Yes, it is in your best interest to get pre qualified from a lender before you start looking at houses. The worst thing you can do is fall in love with a house that you can not afford. After you have been looking at houses above your price range then nothing in your price range will be appealing.

After you get pre qualified then you need to pick an agent and get them to help you find the right house.

**markbrian** · 08-07-2009, 08:07 AM

I have to agree to get pre qualified. The bank may, even in this day and age, still approve you for more than you want to spend so determine what monthly payment you would be comfortable with. You sure do not want to increase your monthly housing payment, if anything you may actually be able to spend less.