Short answer: yes. If you plan to buy in Bakersfield, Shafter, Delano, Tehachapi or Visalia, get a preapproval letter before you start touring homes.

What is a preapproval letter?

It is a letter from a lender saying they are tentatively willing to lend you up to a certain amount. It is based on assumptions and is not a guaranteed loan offer. But it tells a seller you are likely able to get financing, and sellers often ask for one before they accept an offer.

Preapproval or prequalification?

Lenders use the two words differently. Some base a "prequalification" on information you report yourself, and only issue a "preapproval" after verifying it. Others use them interchangeably. Ask the lender what the letter is based on and what was verified.

When should you get one?

Lenders typically check your credit, and the letter can expire, often in 30 to 60 days. Getting preapproved earlier can help you spot credit issues while there is still time to fix them.

Questions to ask your lender

• What assumptions did you make for this letter?
• Is there anything that could lead to a denial later, or raise my rate or costs?
• What documents do you need, and which can I gather now?
• When does the letter expire?

Three things to keep in mind

1. A preapproval is not a loan application, and it does not lock you into that lender.
2. The letter shows what a lender will lend. Only you can decide what you are comfortable paying each month.
3. Local agents know which lenders sellers in our area take seriously. Ask before you pick one.

Thinking about buying in Kern or Tulare County? Call or text me at 661-903-3183 and we can walk through your next steps.

Alex Daredia | Broker Associate | Watson Realty | CA DRE #02035436