"With a pre-approval, you're going to have more leverage when you make an offer," explained Steve O'Connor, senior director of residential finance at the Mortgage Bankers Association of America. "You can say, 'I've got a loan approved already that's sufficient to purchase this home,' and that makes you more attractive to a potential seller."
Once you and the seller agree on a price, you both will sign a sale contract, which will spell out conditions each party must meet for the sale to go through. A closing of the sale generally hinges on both the buyer's ability to obtain the mortgage loan and the seller's completion of some home repairs.
To start the Pre-Approval process, click here