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When you’re excited about buying commercial real estate, it’s tempting to start scheduling property tours right away. But before you step foot into any listing, there’s one thing you absolutely need: a pre-approval.
What Is a Pre-Approval and Why Does It Matter?
A pre-approval is a letter from a bank, lender, or credit union that confirms you’re financially qualified to buy a property. It tells sellers (and brokers like me) that you have the funds to back up your interest. Without it, it may seem like you’re just window shopping—and that’s not how deals get done.
Why Brokers Require Pre-Approvals
As a commercial real estate broker, my job is to find you the right property and negotiate the best deal. But I don’t handle financing—that’s between you and your lender. A pre-approval helps me (and you!) in several ways: 1) it narrows down properties within your actual budget, 2) it strengthens your position as a serious buyer, and 3) it speeds up the deal-making process.
Without a pre-approval, you risk wasting time looking at properties you may not even be able to afford.
Where Do You Get a Pre-Approval?
To get pre-approved, it’s best to head to your bank, credit union, or preferred lender and start the process. They’ll assess your finances and provide a letter stating how much you’re approved to borrow.
Make Your Investment Journey Smoother
Having a pre-approval in hand means you’re not just browsing—you’re buying. It gives you clarity, confidence, and a competitive edge. So before you ask for property tours, ask yourself: Do I have my pre-approval ready?
Do you have questions about the process of buying and/or investing in commercial properties? Check out my blog post: The Step-by-Step Guide to Buying Commercial Real Estate. Need expert guidance? Let’s connect!
