Can you tour a house without preapproval?

Quick insights

• A mortgage preapproval helps determine how much you can afford and shows the sellers you are a serious homebuyer.
• While you can tour homes and make offers without preapproval, it may make the homebuying process more challenging.
• Without preapproval, you may view homes outside your budget or miss out on showings if required by sellers or real estate agents.

If you’re a first-time homebuyer, you might be eager to start touring homes right away—but do you need a mortgage preapproval first? While preapproval isn’t required, it can give you a clearer budget and help you stand out in a competitive market. Understanding how it works can make your homebuying journey smoother and more confident.

What is a preapproval letter?

A preapproval letter is a document from a loan provider stating how much they are willing to lend you. The amount and other loan terms are based on a review of your recent financial information. A preapproval signals to sellers that you’re a serious homebuyer with the financial backing to make an offer.

How do you get a preapproval letter?

You’d need to apply with a mortgage loan provider, providing important financial details, such as your income, employment history, assets, current debt and credit score. The lender will review your information, conduct a hard credit check and determine how much you qualify for.

Preapprovals for loans, such as mortgage preapprovals, are typically valid for 60 to 90 days. However, the exact duration can vary depending on the lender and the type of loan. It’s important to check with the specific lender to understand their policy.

If the preapproval expires before you find a property or complete the purchase, you may need to reapply or update your financial information to extend the preapproval.

Why to get a preapproval before looking at homes to buy

Getting preapproved can streamline your home search and give you a competitive edge. Here’s why it matters:

• Evaluates your financial situation: Preapproval gives you a clear picture of how much you can borrow, helping you set a realistic home budget.
• Not mandatory, but beneficial: While you can tour homes without it, a preapproval letter can strengthen your position when making an offer.
• Benefits often outweigh the impact: A slight credit score dip could be worth it since preapproval makes you a more attractive homebuyer to sellers, potentially speeding up the mortgage process.

Touring homes without preapproval

You can tour homes without preapproval, but it may not be the most efficient approach. Without a preapproval letter, you won’t have a very clear understanding of your purchasing budget. Perhaps that wastes your time looking at homes outside your price range. Additionally, some real estate agents and sellers may require proof of preapproval before scheduling a showing.

You could potentially tour homes and attend open houses without a preapproval. However, having it could open doors to various homes and streamline the buying process. All in all, preapproval helps you focus on homes within your financial reach.

Making an offer without preapproval

Submitting an offer without preapproval is possible; however, sellers might prioritize preapproved offers. Preapproval indicates that the buyer has secured financing and a higher chance that the deal will go through. While you can still make an offer, it could be perceived as stronger when you’re preapproved. Sellers might prefer preapproved offers over others in a fast-moving market where multiple buyers show interest in the same home.

The downsides of getting mortgage preapproval before touring houses

• Preapproval has an expiration date: Most letters are valid for 90 days, so if your home search takes longer, you may need to reapply.
• Potential credit score impact: Multiple preapprovals within a short time frame can affect your credit score.
• Financial changes can affect approval: If your income or debt situation changes, your preapproval may no longer be valid.
• Not a guaranteed loan offer: Preapproval doesn’t guarantee final loan approval; loan providers still need to verify all details during underwriting.

In summary

A mortgage preapproval can make the homebuying process easier and more efficient. In some cases, preapproval might be required to schedule a showing. Sure, touring homes, attending open houses and making offers without preapproval is possible. However, the preapproval could make your offer more appealing to sellers. There are pros and cons, but you may find that getting preapproved helps your homebuying journey in the long run.