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Can I get a commercial loan without 25% down?
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If you have a fair idea as to how much you can afford, you can start house hunting & get pre-approval later as well.
On the other hand, If you are not sure about the max. $ value you can afford based on your DTI, get a pre-approval beforehand.
Sometimes, your real estate agent might also be a loan officer & he/she can also give a pre-approval letter without a hard inquiry.
For pre approval, just go to your current bank. They can do it very quickly without running a hard credit check.
For the loan itself you'll have a chance to find the best rate later.
Coach
People above are talking about a pre qualification letter. A preapproval requires you to submit documentation and will involve a hard credit check. I would shop the rate and only get a preapproval from the company you intend to use. You need the pre approval before you can submit an offer that will be taken seriously. But there’s no harm in interviewing realtors before you have the preapproval or in visiting some open houses to better idea of the market. You should be able to get a pre approval within a couple hours if you have your document on ready to go.
A1: is correct. I got pre-approval letter from a lender with whom my realtor works frequently. No hard check and got the letter in an hour or so with just 2-3 docs asked.
Thank you all! I had know idea they could do a preapproval letter with a soft pull. I’ll ask. I have all my docs ready.
Go to a Housing Authority, Home buyers program. There is a specialist There for $50 they will provide a polethra of information, closing costs, variations in costs in the different cities of your state. Going to Housing Authority will better your chances of being misinformed about many real estate laws for your state.