Meet With A Lender For Pre-Approval | Home Buying Process Step #2
Loan pre-approval is a vital step in the home buying process that serves two primary purposes. First, it informs your home search criteria, eliminating disappointment and time wasted looking at homes outside of your price range. Secondly, it notifies sellers that you are a qualified buyer.
A lender will evaluate your income, assets, and credit to determine how much money a bank will lend you, and thus, how much home you can afford.