How Much Does Loan Pre-Approval Matter?

Jim David asked this during our live show via YouTube:

In the current Hawaii market, how much does loan “pre-approval” matter? Still valid for a month, six?

This short clip came from our Aloha Friday Hawaii Real Estate Show which goes live every other Friday on our Hawaii Real Estate YouTube channel or our Living in Hawaii Facebook page

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Show Transcript:

im david uh who asked uh uh a question
the current hole in the current hawaii
market how much does loan pre-approval
matter still valid for a month or six
well i can tell you it matters a hell of
a lot but i think that the question is
how long is it valid for um dylan you
want to tell us how long typically are
loan approvals sort of good for or
pre-approvals yeah normally they’re
they’re they’re good for 30 days um but
they can easily easily be updated right
a lender will just need maybe an updated
bank statement or check that make to
make sure that you haven’t done anything
crazy with your finances and they can
issue you an updated one but on the
question of how much does it matter
don’t even show up unless you got one
because you got no shot so it absolutely
thank you dylan for expanding on that
scott you want to add to that yeah so in
other words don’t even think about uh
placing an offer unless you’re
pre-approved certainly in today’s market
scott anything you want to add to that
one yeah i mean the pre-approval letter
is a necessity but i don’t for me at
this point you you have to have some
kind of uh significant down payment or
at least some kind of appraisal clause
i’m not even pre-approvals
are the bare minimum but i’m not even
getting accepted contracts with people
with just the pre-approval you gotta
have some cash funds to make up for an
appraisal shortage you got to put some
language in there
yeah hey so thanks so scott kind of
viewed us a little bit more to like the
kind of things that are needed in
today’s market heidi you want to add to
that at all like for today’s offers you
got to have pre-approved scott’s kind of
saying you got to have pre-approval you
may have to waive some part of the
appraisal uh what else is going to what
else have you seen heidi that’s got to
be happening to even get in the game
these days to make an offer on house
that has a prayer of getting accepted
yeah um pre-approval absolutely
um by a hawaii lender that tends to hold
more weight
um also proof of funds um
is really important i mean the listing
agent and the seller are going to be
looking at the entire package of your
and in order to accept something i mean
they want
just really great proof that you’re
going to be able to close so it’s it’s
really great to just get all that up
front and get it and make your offer
more competitive so they’re not left
whether or not you’re going to be able
to close