When looking for a home, we suggest that you arm yourself with a pre-approval letter, and truly decide which house to buy by evaluating your current and future housing needs, lifestyle, and financial holdings.

Here are four reasons why obtaining a pre-approval letter is essential:           
  
1. A pre-approval letter is more reliable than a pre-qualification letter. A pre-approval letter,  involves verification of the information. Rather than taking your word on faith, the lender will ask for documentation to confirm your employment, the source of your down payment and other aspects of your financial circumstances. 

2. You'll know how much money you can qualify to borrow. Most home buyers have a rough idea of how much they would feel comfortable paying every month on their mortgage. However, translating the monthly payment into a specific maximum mortgage amount involves factoring the down payment percentage, mortgage insurance, property taxes, and adjustable interest rate.

3. You'll have more leverage in negotiations with the seller. Sellers often prefer to negotiate with pre-approved buyers because the sellers know such buyers are financially qualified to obtain the financing they need to close the transaction

4. Your real estate agent will work harder on your behalf. A pre-approval letter signals to your real estate agent that you're a well-qualified buyer who is serious about purchasing a home.