What is Pre-Approval and Why It Matters More Than Ever in 2025

A Must-Have Step for Central Oregon Buyers

If you're thinking about buying a home in Bend, Redmond, Sisters, or anywhere in Central Oregon, the first step isn’t browsing listings—it’s getting pre-approved for a mortgage.

With tight inventory, rising interest rates, and high competition in 2025, pre-approval has gone from a “nice to have” to an absolute must-have.

💡 What is Mortgage Pre-Approval?

Pre-approval is a formal letter from a lender stating how much they’re willing to lend you, based on your income, credit score, debts, and assets. It's different from pre-qualification, which is more of an estimate.

When you’re pre-approved:

• You know exactly how much home you can afford

• Sellers know you're serious and ready to buy

• You can act fast when you find the right home

🔥 Why Pre-Approval Matters Even More in 2025

1. More Competition

Buyers from Portland, Seattle, and California continue to relocate to Central Oregon. With desirable homes often getting multiple offers, pre-approved buyers get priority.

2. Higher Rates = Tighter Budgets

Mortgage rates in 2025 remain volatile. Pre-approval helps you lock in a rate early and avoid disappointment later.

3. Sellers Expect It

In this market, submitting an offer without a pre-approval letter often means your offer won’t even be considered.

4. Faster Closings

Being pre-approved can shave 1–2 weeks off your closing time, which is often a deciding factor for sellers choosing between similar offers.

If you're even thinking about buying a home in 2025, don’t wait to get pre-approved. It’s the best way to understand your buying power, position yourself ahead of other buyers, and make smart, informed decisions.

📲 Need a trusted local lender or want help navigating the process? Reach out—I’d be happy to connect you.

FAQs

Q: How do I get pre-approved?

A: A lender will ask for proof of income (W-2s, tax returns), credit history, assets, and debt info. Many local lenders in Bend offer same-day decisions.

Q: Does pre-approval hurt my credit?

A: It does result in a “hard inquiry,” but one or two inquiries have minimal impact. It’s worth it for the advantages it brings.

Q: How long does pre-approval last?

A: Typically 60–90 days. After that, you'll need to renew it with updated financial documents.

Q: What if rates change after I’m pre-approved?

A: Some lenders offer rate locks at the time of pre-approval or once you go under contract—ask about that up front.