Getting pre-approved for a mortgage amount helps to take the guess work out of what you can afford. It also strengthens your bargaining position by letting the seller know that your financing is solid. Mortgage lenders give you a printed document stating the maximum mortgage amount you qualify for based on your financial situation.
Why get pre-approved? Let’s say that you have just put an offer on your dream house, but then your bank tells you that you can’t afford the house. Your dreams are dashed, you are embarrassed and you’ve wasted everyone’s time, including your time. By getting pre-approved, you will have a realistic idea of what you can get and you can save everyone a lot of time!