Fear of the Pre-Approval

What I Wish Every Buyer Understood Before Starting

One of the biggest issues I see with buyers, and one of the main reasons people delay buying a home, is fear around getting pre-approved. More specifically, they are terrified of having their credit run. This is something I have never fully understood, because in order to find out if you qualify to buy a home, your credit has to be pulled. That is simply part of the process.

There seems to be this belief that the moment a lender runs your credit, it will suddenly drop dramatically. But if that were true, no one would ever be able to buy a house. Millions of people purchase homes every year, and they all have their credit pulled in the process. If credit scores truly “tanked” from a single inquiry, homeownership would be impossible. The reality is, that just isn’t happening.

What many buyers don’t realize is that getting pre-approved can actually be incredibly rewarding and educational. When you go through the process, you learn so much about where you truly stand. You learn what you can afford, what you need to plan for in terms of a down payment, how much cash you’ll need to close, and what your real purchasing power is. These are things no online calculator can accurately tell you.

I can’t tell you how many times I’ve run numbers for clients using online calculators and later found that the estimates were way off. And it’s not because those tools are useless — it’s because there are so many factors that go into buying a home. How much are you putting down? What is your credit score? What type of property are you buying? What loan program are you using? How is your income structured? What debts do you have? Until those questions are answered, no number you see online is going to give you the full picture.

Once you stop being afraid of the process, a good lender will sit down with you, walk through your numbers, explain everything clearly, and help you understand exactly what you qualify for and what your payment would look like. And here’s the thing people often forget — everything they ask for is information you already have. You’re asking a bank to lend you hundreds of thousands of dollars. They are taking a risk on you. Allowing them to do their due diligence is part of the deal, and it ultimately benefits you as well.

The Story of Jessica…

I once had a client who wanted to buy about six years ago. When she finally went through the pre-approval process, she qualified for a purchase price of about $250,000 in Orange County. At the time, there was nothing available at that price point that would have been safe or suitable for her family. The issue wasn’t that she was irresponsible or bad with money. It had everything to do with how her income was structured and how her debts were set up.

Because she went through the pre-approval process, she learned exactly what needed to change. She learned how adjustments to how she was paid, how she claimed her income, and how she managed her debts could significantly increase her purchasing power. That knowledge gave her a roadmap.

Fast forward six years to 2025, and we closed on a wonderful townhouse for her and her family in a safe neighborhood and the perfect school district for her daughter. Had she never gone through that initial pre-approval years earlier, she would have never known what steps she needed to take to get there.

That’s why I always say this: even if a lender tells you “not right now,” a pre-approval is still a win. It gives you clarity, direction, and a plan. If homeownership is a goal of yours, the best thing you can do is start working toward it now instead of guessing or avoiding the process altogether.

I know it can feel scary. But it’s a necessary part of life and buying. I’ve never understood delaying clarity when the information can be so empowering. And if you ever need lender recommendations, I’m always happy to share who I personally trust and use for my own home loans. I've put this contact down below. Because the goal isn’t just buying a house — it’s helping you get to the right home, in the right way, when the time is right.