The Pre-Approved Buyer

pre approvedMortgage lenders offer a service that is referred to as a pre-approval.  An abbreviated mortgage application is taken and the lender provides a document stating the amount of money the buyer will be able to borrow when making a home purchase.  The pre-approval also states that it is conditional pending the appraisal of the actual property being purchased and written proof of the buyer’s employment and income.  There are benefits to both the buyer and seller.


Buyer’s Benefits  With a pre-approval, the buyer knows what price range he or she can and cannot afford.  This knowledge in advance prevents a person from falling in love with a home that is not within his or her financial grasp.

Seller’s Benefits 
Whenever an offer is made, it is usually dependent upon the buyer obtaining a mortgage in order to complete the purchase.  If the buyer has been pre-approved, however, the seller knows that this is a buyer who is indeed capable of completing the purchase.