Why is it Better to Have a Pre-Approval Before Buying a House?
After getting pre-approved, your real estate agent will use your pre-approval letter (lending budget) along with your desired requests to research homes and schedule appointments. Beginning the home buying process without a verified pre-approval letter can mismanage expectations and miss out on putting in timely offers.
What is a Pre-Approval Letter?
A preapproval letter is a document that states how much a lender is willing to loan the buyer(s) for a new home. Often, it is the document that will help guide your relative price range assuming the buyer is not paying “cash” for the property. More importantly, the pre-approval letter will help direct the buyer and agent how much the buyer can afford when bidding on a property.