Benefits of Getting Pre-Approved for a Mortgage Loan Before Home Shopping

Get Legal Help Today

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

The home buyer benefits from getting pre-approved for a mortgage loan before beginning to shop for a home. A pre-approval will give the buyer more negotiating power with a potential seller than a pre-qualification from the lender.

Getting Pre-Approved

The mortgage lender will determine if the buyer is qualified for a loan and, if so, will give the borrower a maximum eligible amount. This in-depth process of applying for a loan will include submitting a range of documents from tax returns and bank statements, to credit and employment history and divorce decrees. When the borrower is pre-approved, he will know how much the lender is willing to loan him. Although this is not a guarantee until he goes through final approval after making an offer on the house, it tells him how much he can afford. Showing the seller a pre-approved letter also gives the buyer a hands-down advantage in negotiating with the seller over someone who is estimating his “borrowing” profile.


Pre-approval should not be confused with pre-qualifying for a loan. The buyer is not submitting a mortgage application. But, the pre-qualification process does give him or her an idea of whether s/he is likely to qualify for the loan s/he wants, although the actual approval is not granted until all the paperwork is in, the facts stated when pre-qualifying check out, and nothing inconsistent is uncovered. This is an informal process which can be done fairly quickly either by telephone or e-mail.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption