Craftsman Real Estate Services


Here at the Craftsman Real Estate Services blog you'll find staff-produced content covering Buying a Home, Selling a Home, Investing in Real Estate, Managing Renal Properties, and various financial tips and tricks.  We are heaven-bent on producing content that helps our clients build multi-generational wisdom and wealth and to that end, please enjoy, like, comment, and share!


When should I get pre-approved for a home loan?

When should I get pre-approved in the home buying process?

When should you get pre-approved for a home loan?

Let's talk about when you should be pre-approved or pre-qualified to see homes.


You should be pre-approved or pre-qualified as soon as you can in the home buying process, and here's why: In the process of looking for a home that you want to buy, you may just want to buy it so much that [...]

Do you need to be preapproved for a loan in order to go see houses?

Do you need to be pre-approved by a lender in order to see homes with a real estate agent?

Do you need to be pre-approved by a lender in order to see homes with a real estate agent?


Do you need to be pre-qualified to look at homes?

Here's your answer?

Yes, you should be

Do you have to be? No . . . Many agents will not ask (even though they should) and there are ways to look at homes without being pre-qualified, like open houses. In fact, builders typically hold their new construction homes open several days a week and agents commonly hold open houses on the weekends, or maybe a different day in your area.

There is one simple dynamic that I want to be clear about here: when you want to work with an agent and go out and see homes then you should be prepared to buy a home.  A major part of that financial preparedness is determining IF you can purchase the home and speaking with a lender or a bank or someone that has the ability to loan money for the purchase IS the way you determine that. 

A pre-approval (or prequalification - often used synonymously even though they're slightly different) is often not much more than a conversation with someone "in the know" in banking. This conversation can be only a few minutes long and in it they will verify details about your income, approximate debt levels and overall financial picture. In light of that conversation the lender will be able to tell you, "well, based on what you've provided and the guidelines that guide a conventional loan or an FHA loan or a VA loan or a USDA loan, (whichever loan product is particularly beneficial for you), the guidelines say that as long as your credit score is this and your debt to income is this then you could qualify for this."

This is critically important even though it is not completely necessary in order to get some dopey agent to show you a home (meaning you will find real estate agents that will drive you all around any town you want and show you homes based on the idea that they might earn a commission off of it.) It is not serving you or guiding you well to do so.

Circling back to ur beginning . . . yes, you need a pre-approval or a pre-qualification before going to see homes.


Not much on reading?  Watch it here:


How I just got $600k cash for "FREE!" - the intro

Blog author shocked by the amount of cash he was able to take away from his refinance.

Blog author shocked by the amount of cash he was able to take away from his refinance.


I just got $600,000 for free!


Let me tell you how I did it. You can do the same.


It took a while, but I just finished a refinance. Over the last two years our property values across all of our rental properties have gone up . . .  substantially. For that reason we're doing a refinance .What a refinance does is it captures TODAY'S market value.


The lender will lend up to a certain percentage - in this case up to 75% of the appraised value of the properties.. Since that number is up, so is the percentage that the lender will lend (higher appraisal = higher cash-out). The lender then took a portion of that loan value and knocked out all the existing mortgages.  The balance left over (minus the origination fee and other closing costs) they gave us in cash. That's called a "cash out" refinance. The new cash that was taken out is part of the loan.


That's a key point; it's NOT income. 


It's a loan.


Because of that, the cash out was functionally free to me and is now useful. So we're gonna hang on to it and see if we can go on a buying spree when the market cools back down. Will that happen? We don't know, but we hope so and you can use the same strategy, more details in the next video.



Not big on reading?  Catch it on YouTube here:

Welcome to our new blog!

We look forward to making this the best resource for information about real estate, our local area, and current topics that impact you. Please feel free to comment on our posts if you have questions or reactions to share. If there is anything you'd like to see us write about, we'd love to hear your ideas.