The Importance of Pre-Approval

Before you begin searching for a home, one of the most useful things you can do is to get pre-approved for a mortgage. By completing a mortgage application prior to choosing a home, you'll not only know how much a lender will be willing to lend you, and therefore, how much house you can afford, but it also shows prospective sellers that you are a serious buyer. In fact, many sellers will require you to provide a "pre-approval letter" from a reputable lender prior to reviewing an offer. Lining up your financing in advance can help move your offer to the head of the pack in a competitive real estate market.