Pre-approval

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Pre-approval can be a very valuable step toward purchasing a home. Many homebuyers get pre-qualified for a home loan early on and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford.

Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you’re serious about buying a home. This may give you leverage in the negotiation process. Many sellers actually prefer to work with pre- approved buyers, especially in hot real estate markets.