Tax Rates
Pre-approval is one step beyond pre-qualifying for a loan. Pre-qualification only states that a lender might give you a loan up to a certain amount. When you're ready to get a loan, you'll still need to get approved.
On the other hand, pre-approval from your lender states that they will give you the loan up to a specified amount based on a detailed investigation of your personal finances. By doing it before you search for homes, you'll save yourself the time needed for approval and you'll know exactly how much house you can afford to buy. Additionally, buyers who submit their offers with pre-approval letters look just like cash offers. In essence, the money is already there. Offers without pre-approval suggest to your seller that they should enter into contract based ONLY on your word. In a Seller's Market, those offers are likely to be turned down. Don't lose out on the home of your dreams --- get your ducks in a row ahead of time.
On the other hand, pre-approval from your lender states that they will give you the loan up to a specified amount based on a detailed investigation of your personal finances. By doing it before you search for homes, you'll save yourself the time needed for approval and you'll know exactly how much house you can afford to buy. Additionally, buyers who submit their offers with pre-approval letters look just like cash offers. In essence, the money is already there. Offers without pre-approval suggest to your seller that they should enter into contract based ONLY on your word. In a Seller's Market, those offers are likely to be turned down. Don't lose out on the home of your dreams --- get your ducks in a row ahead of time.
