Pre-Approval
Pre-approval means your lender has looked in detail at your finances and certified that you would qualify for a certain loan amount. Below are some real advantages of getting pre-approved as you continue looking at homes:
Confidence:
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 you can't afford.
Strength:
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. They'll find your offers more attractive, because you can back them up.
Timing:
Mortgage approval can take time, especially if you need to assemble documentation or clear up 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.