Do I Need to Be Pre-Approved Before I Start Touring Homes?

Most people I meet who are ready to buy their first home haven't been pre-approved yet, and many aren't sure where to start. That's completely normal. The question I hear is usually some version of this: do I have to do that before I look at a single house?

I'm Jill Howell with Howard Hanna Real Estate Services. I work with first-time buyers in Lancaster, Pickerington and Canal Winchester, and I'll tell you what pre-approval is, why I ask for it, and what you can do if you're not there yet.

These two words get used as if they mean the same thing, and they don't.

Pre-qualified is a quick estimate. You tell a lender about your income, debts and savings, and they give you a rough idea of what you might borrow. It's a starting point.

Pre-approved goes further. The lender checks your documents and your credit, and gives you a letter that says how much they're willing to lend you, subject to conditions. Sellers take that letter seriously when you write an offer.

You can look at homes without it. Nothing stops you from walking through a house. But I ask people to start the process early, for three reasons.

It tells us what to look at. If we tour homes outside your range, we waste your time and you may fall in love with something you can't buy. A number up front keeps the search realistic.

It lets you move quickly. When the right home comes up, you may need to write an offer fast. A pre-approval letter in hand lets us do that without a scramble.

It surprises you less. Some people learn at this step that they can borrow more or less than they expected, or that there's something to fix on their credit first. Better to know now than in the middle of an offer.

Lenders vary, but you can expect to be asked for things like:

• Recent pay stubs or proof of income
• Tax documents from the last couple of years
• Bank statements
• A photo ID
• Permission to check your credit

Getting these together before you call makes it go faster.

A lender may approve you for more than you want to spend each month. Your pre-approval says what you can borrow. It doesn't say what you'd feel good paying.

I'd suggest deciding on a monthly payment you're comfortable with first, then using the pre-approval as the upper limit. We can work out what that means for the homes we look at.

• Keep your job, accounts and credit as they are until you close, if you can.
• Hold off on big purchases, like a car, on credit.
• Don't open new credit cards.
• Tell your lender if anything changes.

Lenders look at your finances again before closing, so a change after pre-approval can matter.

That's what the free buyer consultation is for. We'll talk about what you want, what the process looks like, and what to do first. There's no pressure, and you don't have to be pre-approved to have that conversation.

Buyers in each town often have different priorities. In Pickerington, there are many newer homes in lots of subdivisions and a short drive to Columbus. In Lancaster, homes are generally more affordable. Canal Winchester is growing, with new subdivisions and some older areas. Knowing your range helps us decide where to look first.

If you haven't started, take it one piece at a time. Pick up your recent pay stubs and bank statements, and talk to a lender. If you'd rather talk it through first, get in touch. You can also read about first-time buyers or see how I help you buy, step by step.