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First Time Homebuyer Question #3

Blog by Diane Cardoso | November 14th, 2011

Does a "pre-approved" mortgage guarantee my financing?  A "pre-approval" simply means that your banker or mortgage broker has looked over your assets, earning and debt and has determined the amount of money that you should be able to borrow for purchasing a home.  Before "final" approval can be given, your lender will want to confirm the value of the property by way of appaisal and get a final confirmation on your income and downpayment.  A "pre-approval' gives you a guideline as the to your 'comfortable' home shopping range, and to make sure your dream home is within your reach.  It also tells Sellers that you are a serious purchase when presenting your offer.