Should you get preapproved for a loan before shopping? Bobby and Janet’s story

How to get preapproved certificate

Bobby and Janet’s Loan Preapproval Story : A cautionary tale

Is it really necessary to get preapproved before you go out shopping for a home? It is, and to show you why I’m going to tell you a story about Bobby and Janet in this week’s The Mortgage Minute

Mortgage Minute is weekly informational series presented by Laura Borja, Your San Diego Home Loan Expert

Both Bobby and Janet decided that they were ready to become homeowners. They immediately started their research on the internet.


Meet JanetJanet get preapproved

Janet was very thorough in her research as she moved forward with her plans to buy a home.
She is one of those people that likes to make sure all the t’s are crossed and the I’s are dotted, particularly when it comes to big life decisions. And buying a home is the biggest decision she has made in her life.
Janet asked her Realtor Mary to search for properties that met her list of “must haves” as well as her desired price point.





Realtors wait for you to get preapprovedSure, said Mary, but before we do anything, did you get preapproved for a loan yet?

Janet with Cell PhoneYes! Said Janet. I called a local lender and applied for a preapproval.

Get approved with the right documents I have sent my lender all of my documentation so it could be reviewed along with my credit report. I also had my lender provide me with estimated payments at different price points to make sure that I know how much home I can afford.

How to get preapproved certificate
Did I get preapproved for a loan? Yes!


Mary got busy searching for properties that would meet Janet’s budget and criteria
They set out to look at the top contenders and before you know they had a contract accepted.
Less than 30 days later, Janet had the keys to her new home.



 Bobby is a first time homebuyerNow meet Bobby

Loacal San Diego Realtor
He loves to get things done the easiest and quickest way possible. And who doesn’t, right?

Bobby chose Randy as his Realtor
Bobby let Randy know the kind of house he wanted and the budget he was working with.

Did you get preapproved yet? Asked Randy

I got preapprovedI got that covered, said Bobby.
I applied for a preapproval online while I was doing some research.

Loan PrequalificationLook, I even have a prequalification certificate.I can find you a home in San DiegoGreat, so ready to start your search? Asked Randy.

looking for a home in San DiegoSo they got in the car and started their search for properties.They looked and looked until they found the perfect property and they submitted an offer which was accepted.

Sweet, said Bobby. I’m going to start working on the financing.

No Loan Preapproval -No house

What do you mean start? Asked Randy? I thought you were already pre-approved.

Well no, I am prequalified. I used am online tool offered by an online lender that lets you put in your info and tells you whether or not you qualify gives you a certificate if the number look good.
Oh no, you HAVE to talk to a lender now! Said, Randy

Bobby made an appointment with a local lender that was recommended to him by a friend.
After running his credit report and reviewing his income and asset documentation Bobby’s lender told him that he could not qualify for the loan.
What do you mean I don't qualify?What do you mean? Asked Bobby.
Unfortunately, your debt to income ratios are too high, particularly paired with a credit score that is barely meeting the minimum requirements.






Bobby walked out of the lender’s office with his paperwork in hand.
I guess investing time to gather documents and apply for a loan first would have been a good idea.
I would not have spent so many weekends looking at properties that I could not afford.


So, don’t be like Bobby, be like Janet and get preapproved before you go shopping for a home.

if you have any questions about any mortgage related topics or if you are ready to start the preapproval process, by all means, reach out to me.
Send me an email
Give me a call:  619-992-4061
Text PREAPPROVAL to 44222
Or connect with me on Social Media.
Thanks for  checking out this week’s article of The Mortgage Minute!

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