If you’ve worked with investor clients recently, you already know: the market move fast. Homes get scooped up quickly, sellers want proof of funds right away, and there’s no room for hesitation. That’s why smart brokers don’t rely on vague pre-qual letters anymore—they lead with solid, strategic pre-approvals.
At RCN Capital, we’ve seen it time and again: brokers who prioritize getting pre-approvals help their clients act faster, negotiate better, and close more deals. In fact, the brokers who emphasize pre-approvals from the start close over 30% more transactions than their peers.
Here’s how they do it.
Faster Offers in a Fast-Paced Market
According to recent data from the Mortgage Bankers Association, new mortgage applications fell 6.2% in early 2025 as many customers waited for rates to decrease. Smart investors, on the other hand, are still active and often compete for properties that are not on the market or are about to go into default. A pre-approved mortgage loan for an investment property lets borrowers know how much they can afford and lets sellers know that they can close promptly.
Stronger Negotiating Power
Pre-approved buyers often get contingencies waived—or even land better pricing. That letter isn’t just a piece of paper—it’s leverage.
Clear Budgeting and Risk Reduction
Investment lending has more moving parts than traditional home buying. A full pre-approval helps flag potential issues early, before they cause deal delays.
A systematic approach increases efficiency and client confidence. Here's a six-step investor pre-approval process you can implement:
Step 1: Initial Client Interview
Discuss strategy and timeline with your client, and use your judgement to make refinements if necessary. Verify property type and target markets.
Step 2: Document Collection
Request the usual documentation: two years of personal and business tax returns, bank statements, documentation of down payment and reserve assets, and information on current properties (rent rolls or sale history). For DSCR-type loans, organize rent rolls or cash-flow estimates.
Step 3: Credit Pull and Analysis
Run a hard credit pull and address any problem areas up front.
Step 4: Underwriting Submission
Package the application, including a summary of the projected income and expenses of the investment property. Emphasize positives, including low risk of vacancy or positive market trends.
Step 5: Pre-Approval Letter Issuance
After underwriting, send a comprehensive letter with the maximum loan amount, estimate of the interest rate, required down payment, and term sheet. Make it clear what the expiration date of the letter is—normally 60 to 90 days.
Step 6: Ongoing Client Touchpoints
Set quarterly follow-ups to update documentation or renew the pre-approval if their search lingers.
Use these strategies to streamline pre-approvals and cement your reputation as an investor advocate:
Prequalify Early
Have a quick conversation with your client to catch red flags before diving deeper.
Match Loan to Strategy
Educate clients on DSCR, bridge, fix-and-flip, and non-QM loans so you can recommend the right product from the start.
Use Tech to Move Fast
Secure document collection and automated credit pulls save time—which can be the competitive edge your investor needs to win a deal.
Your ability doesn't stop at paper. This is where you provide genuine value:
Market Insight
You recognize which neighborhoods have high rental demand or flip profits. That information shapes the property's viability in the lender's mind.
Rehab Budget Guidance
Lenders require realistic cost projections. If your client is undertaking a major renovation project, introduce them to reliable contractors or appraisers to get more credible budgets.
Exit Strategy Clarity
Regardless of the borrower’s exit strategy, lenders will insist upon detailed info that supports it as a viable option. You can assist clients in developing a timeline and plan that is acceptable to lenders.
These best practices will keep your clients and their application in top shape:
These numbers highlight the value of speedy, accurate pre-approval, particularly for investors pursuing off-market properties whose owners require immediate closings.
Solution: Give every client a checklist of documents at your initial meeting. Remind and instruct them to upload documents regularly.
Solution: For rental loans, help clients create an accurate picture of DSCR. Be sure to add property taxes, insurance, vacancy reserve, and management fees when calculating this ratio.
Solution: Set calendar reminders to re-pull credit reports prior to making final loan approvals. A delayed credit card application or a late dispute can sidetrack underwriting.
RCN Capital’s broker-focused programs make pre-approvals even smoother:
Ultimately, Pre-approvals are how you get your client in the game and help them win. When you lead with preparation, strategy, and the right lending partner, you become more than a broker. You become a competitive advantage.
RCN Capital is here to help you make that happen—whether your client is buying their first rental or expanding a portfolio. Connect with us today to discuss your next real estate deal and how we can help you and your clients win.