Why Pre-Approval Matters More Than Ever for Buyers (And Agents Too)
By Mike Fish – Minnesota Real Estate & Management
This is Mike Fish from Minnesota Real Estate and Management, and today we’re going to talk about an issue that’s extremely important for buyers to understand—and honestly, really important for newer agents to understand as well.
A couple days ago, I was talking to someone who’s studying to get their real estate license, and we ended up discussing the kind of knowledge that only comes with time and experience. Most newer agents succeed because they join a team or partner with a mentor who helps fill in those early gaps. And one of the biggest gaps often revolves around pre-approval vs. pre-qualification.
The Old Way vs. Today’s Reality
Back when I started, if someone said they were “pre-qualified,” we typically jumped right into showing houses. And I’ll admit—as a new agent, I certainly tended to be that way. If someone wanted to look at homes, I was ready to grab the keys.
But today’s market requires a much different approach.
Being pre-approved is absolutely essential.
At its core, this is about trust—trust between the buyer and their agent, trust with the seller’s agent, and trust with the sellers themselves.
Why Pre-Qualification Isn’t Enough Anymore
When someone is pre-qualified, it simply means the loan officer glanced at the basics and said, “I think we can get you a loan.”
But once the full pre-approval process begins, a lot can change. In fact:
More than 20% of pre-qualified buyers discover during pre-approval that something prevents them from actually getting the loan.
For fully pre-approved buyers, that number drops to just 2–3%.
If you were the seller, who would you take seriously?
Exactly.
Why This Matters for Agents Too
A lot of agents will show 20 houses to anyone with a heartbeat because they feel like they’ve got a “live body.” I was more like that when I first started out—eager, excited, and ready to go.
And to be clear, I am still very willing to show just about anybody a few homes to build trust and get to know a buyer. It’s one of my favorite things to do as a broker. Walking through properties, talking about layouts, discussing potential—it’s honestly one of the best parts of this job.
But doing the work upfront—getting pre-approved—is crucial for everyone involved.
Why Pre-Approval Protects You
Pre-approval involves reviewing:
Tax statements
Pay stubs
Bank statements
Credit reports
This removes uncertainty. As I always tell buyers:
“Window shopping is fun until you fall in love with something and then find out you can’t buy it.”
There’s always a little gray area when you’re honest with your buyer agent and building a relationship, but in general, you are far better off uncovering issues early—before emotions are invested and time is wasted.
When you’re pre-approved, you:
Work with a buyer agent who’s confident investing their time in you
Are taken seriously by sellers and listing agents
Strengthen your offer in a market where appraisals are already tight
Avoid losing out while scrambling to get paperwork together
It’s extremely common for buyers to find the perfect house and then lose it because their pre-approval wasn’t done early enough.
Do I Still Show Homes to Pre-Qualified Buyers?
Absolutely. I always have and always will—especially for past clients, people I already know, or folks I have a good sense of. And again, showing houses is one of the things I genuinely enjoy the most in this business.
But in general, it is far better for the buyer to complete the pre-approval upfront.
Let Us Help
This is Mike Fish from Minnesota Real Estate and Management. If you have questions about getting pre-approved, reach out anytime. We work with a network of excellent local loan officers as well as national lenders who specialize in various niches.
That said, if you already have a trusted banker or lender you’ve been with for years, stick with them—unless something comes up that requires a different option.
Depending on where you’re seeing this, go ahead and like the video, subscribe, and stay connected. We’d love the opportunity to earn your trust and your business.
Thank you.
