It is highly recommended that buyers apply for a loan to obtain pre-approval before they start looking for the home they wish to buy, especially if you are looking for distressed properties or foreclosures that will utilize the Full 203k.  Since it is a special construction program, pre-approval is especially important so that 1) you don't enter into a contract without knowing for certain that you can purchase the house, 2) you and your agent know exactly how much you qualify for so you know what price range to look in and 3) so your agent can write your offer to your best advantage including asking for seller assistance. 

There are huge advantages to being “Pre-Approved”...

• You know exactly how much money you can qualify for
• You can determine what monthly payment amount you are comfortable with
• You can look at the “right” homes
• You minimize the stress of not knowing if you can qualify
• You minimize the trauma of finding out your dream home is unobtainable because you can't afford it
• You have higher negotiating power because you will have a “Pre-Approval Letter” in hand, this tells the seller he has a serious offer to consider
• You can save money dealing with a comfortable seller 
• We can discuss with your agent how to best present your offer to allow for seller assistance and maximize savings on your end