Preapproval

When a lender commits to a loan before the borrower finds a property to buy

Even if you haven't found a property, some lenders will give you a written preapproval on a loan. The benefits to getting a preapproval are: (1) you know exactly what you can afford to offer for a home; (2) you show a seller and your realtor how serious you are about buying a home; and (3) you'll sleep better at night. To get a preapproval, you have to fill out a standard loan application called a 1003.

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