Pre-approval means your lender has reviewed your finances and certified you would qualify for a certain loan amount. Below are some major advantages of getting pre-approved as you look for homes:
Instead of the rough ballpark figures you’ve been working with, you now know how much money a lender will loan you for your new home. You’ll know you’re not wasting time on homes out of your preferred price range.
You’re in a stronger negotiating position when dealing with sellers because they know there’s far less chance of a financing issue causing problems. Sellers will find your offers more attractive, because you can back them up.
Mortgage approval can take time, especially if you need to assemble documentation or resolve questions for your lender. It’s a good idea to start the process early so you can be ready when your offer is accepted and you’re ready to close on a home. Nobody likes to put off a closing date or delay their move-in because of loan details.