Well, definitely preapproval is the way to go so, you can make a stronger offer and do not waste your time. Sometimes you have to go the prequal route if you have a typical new buyer with a dose of ADHD.  They just can't wait to look so, at least get them to have a conversation with a local mortgage company you can trust. Ask others in your office who they trust. You must be careful not to show them houses that are above their price range because if you do that, they almost never buy because they want the more expensive house they cannot afford. Unless they are older, most first time buyers will buy up to their limit and are usually fine because they have not yet hit peak age for income in their career. Do not take their word for what they think they can afford. They may make $100,000 but if, they have two large car loans and some student or credit card debt they might not qualify for anything. Ultimately you have to make some decisions as to how you are to spend your time. If you have absolutely nothing to do you might as well work with a less than great qualifying client. If you are really busy do not waste you time on what you think will not work. I also look at where these folks are interested. If they are talking about an hour away from my home base on dirt roads you can bet they are going to be preapproved.