When it comes to buying a home financing quickly becomes the top issue. Start talking to a real-estate agent and among the first things to be said is “are you pre-approved?”
What does pre-approved mean?
Well, it means about as much as the paper it is written on if you ask most agents. The idea of a pre-approval letter is that the buyer – that’s you – has visited a lender and they have reviewed your credit, income, etc. and feel confident that barring any unexpected issues that you’ll be able to buy a home for “$x” amount.