When you’re shopping for a home, getting “pre-approved” by your bank or other mortgage lenders provides you with two big advantages.
First, you know in advance how much home you can financially manage. You won’t waste time looking at properties you can’t afford, and you’ll be able to consider homes that you may have originally thought were out of your reach. Second, when you make an offer on a home, sellers tend to take those with a pre-approved mortgage more seriously. That’s because they know there is less likelihood that financing issues will spoil the deal.
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