Mortgage Pre-Approvals and Buying a Home

Photo credit: Brian A Jackson /

Finding the right home to buy is not easy as it may seem. Most prospective home buyers get frustrated when they are asked for the pre-approval letter. Mortgage pre-approval is one of the home buying processes that let the buyers determine if you are a serious buyer. In fact, this is the most crucial step that will help you get a mortgage loan for buying a home. During the mortgage pre-approval process you will be required to submit documents such as bank statements, tax returns, and employment verification. Moreover, your credit report is very vital in this process.

Once you get mortgage pre-approval from the lender, you will be more trustworthy in the eyes of the sellers or a real estate agents. Also, you can show this letter to the sellers when bidding for a property. It demonstrates your ability to purchase the property and makes you more attractive to the sellers.

Importance of mortgage pre-approvals in the home buying process

#1. Shows your capability to buy a home

Unless you are planning to purchase a house for cash, you have to arrange for some financing. It can be very frustrated to search for a home for several days only to find that you cannot afford it. However, with the mortgage pre-approval letter, the realtors and sellers will have more confidence in you.

#2. Refine your search

The mortgage pre-approval letter will help you know how much you can spend. In fact, this will save you time from searching for homes that you cannot afford. It can be very hurting to find your dream house only to be denied because you cannot afford it. In this case, the mortgage pre-approval will help the realtors find a home that is within your price range.

#3. Allow easier negotiations with the seller

In most cases, sellers are more willing to negotiate with buyers who are pre-approved that those who don’t have a pre-approval letter. Moreover, the seller will give you preference for the offers that might be in the house.

#4. Better results from the Realtors

Usually, realtors will prefer to work with buyers who have a pre-approval letter. In this case, the realtor will know the deal is less likely to collapse. Moreover, the realtor can easily find your dream house because they know what you can afford.


Finding your dream home can be challenging if you have the right mortgage financing. However, mortgage pre-approval letter will make the sellers have trust in you. Moreover, the realtors will be more willing to work with you.

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