Can You Look at a House Without Preapproval?

When You Can Tour Homes Without Preapproval

In some cases, it is possible to tour homes without preapproval. Here are examples of when this may be possible.

• Attending open houses: An open house is usually open to anyone who wants to attend, with no documentation required.
• Browse listings online: You can look at detailed pictures and descriptions of most homes online, with nothing required of you. This can help you know what local area homes are in your price range.
• Work with an agent in the early stages: Some agents will show homes before you get preapproval if you’ve just started shopping for a property, but this depends on both the agent and seller.

What Are the Risks of House Shopping Without Preapproval?

There are downsides and risks of house shopping without preapproval or prequalification. You could find that some agents will not work with you, or that some sellers will not allow you to view their home. When you are ready to make an offer, a seller may not accept it without proof of prequalification or preapproval, and it may take longer to close on a loan if they do.

How Getting Preapproved Can Help When Touring Homes

Getting either preapproved or prequalified can help you when you are touring homes. Here are some of the key benefits.

• Preapproval and prequalification show sellers you are a serious buyer: Sellers will often feel more comfortable accepting a request for a showing or accepting your offer if you demonstrate that you’re already working with a mortgage lender and likely be approved for a mortgage.
• Helps narrow your home search: Getting prequalified or preapproved helps you avoid wasting time. You will know how much you can borrow, so you can stick with looking only at homes in your price range.
• Makes it easier to make an offer quickly: Many sellers require proof of prequalification or preapproval before accepting an offer. If you have financing lined up, you'll be ready to quickly submit a strong offer.
• Strengthens your offer in competitive markets: Many sellers prioritize buyers with financing in place because they are more confident the deal will close. A prequalification or preapproval letter will go a long way towards showing you're a qualified buyer.
• Can help prevent surprises during the homebuying process: Understanding your financing early on in the homebuying process can help you avoid potential issues when you’re ready to buy a home.

It's worth noting, though, that preapproval and prequalification are not good forever -- in many cases, your preapproval or prequalification will only last around 60 to 90 days.

Getting your credit checked by lenders, which may be necessary to get preapproved or prequalified, can also result in a new inquiry on your credit record that could potentially reduce your score. This reduction is usually small and temporary, and the benefits of prequalifying or getting preapproved can outweigh any downside.

Steps to Take Before You Start House Hunting

There are a few key steps you should take before you start looking for a home. Here's what you should take care of to make the process easier.

1. Review your budget and savings: Create your budget by reviewing your bank accounts, income, and monthly expenses to see how much you can afford to spend on your down payment and monthly mortgage costs.
2. Check your credit: Obtain your credit report and review your credit history to identify and correct any errors and find out whether you'll meet the minimum credit score for most mortgages (you’ll need a minimum 620 score for conventional loans and typically about 580 for FHA and VA loans).
3. Get prequalified: Work with a mortgage lender to obtain prequalification so you can shop for a home in your budget and be ready to make an offer.
4. Connect with a real estate agent: An agent can help in your search for your perfect home.
5. Start touring homes: You can begin setting up showings for properties you are interested in.

Looking at Homes Without Mortgage Preapproval FAQs

Still need to know more? Here are the answers to frequently asked questions about looking at homes without mortgage preapproval.

Can You Make an Offer on a Home Without Preapproval?

You can make an offer on your home without preapproval, but it is less likely to be successful or accepted. Sellers almost always want to see that you have been prequalified or preapproved for a loan and are likely to secure financing.

Is Prequalification Enough to Start House Hunting?

Prequalification is almost always enough to start house hunting. Prequalification means a mortgage lender has reviewed some of your financial information and given you an idea of how much you can borrow. You can now look at homes in your price range and provide a prequalification letter to be approved for showings and maximize your chances of a successful offer.

Can a Real Estate Agent Show Me a House Without Preapproval?

A real estate agent can sometimes show you a house without preapproval or prequalification. It depends on whether the agent is willing to work with you before you are prequalified and whether the seller is willing to allow a showing without proof of prequalification.

Do Sellers Require Preapproval to View a Home?

Many, but not all, sellers require preapproval or prequalification to view a home. It depends on the seller and what type of housing market you’re in (a buyers’ or sellers’ market). Having preapproval or prequalification shows that you are likely to be approved for a loan and maximizes the chances that the home sale can close.

How Long Before Buying a House Should I Get Preapproved?

Home loan preapprovals or prequalifications are usually good for around 60 to 90 days. You should get prequalified in the weeks leading up to your home search so you are ready to shop and make an offer.

Final Thoughts: Should You Get Prequalified Before Touring Homes?

If you are ready to begin looking for a home, it's time to get started with the prequalification process. A mortgage loan professional at Freedom Mortgage can help you get prequalified and make your home purchase dreams a reality. Reach out today to learn more.