Preapproval is one of the most important steps in the homebuying process, in most cases, it’s even the first step. People who are interested in buying a house can often approach a mortgage lender, who will then check their credit history, verify their income, and then provide assurances they would be able to get a loan up to a certain amount. The preapproval process helps the borrower find a home that is within their loan amount range, to help them from breaking their budget. Going through the homebuying process, buyers can ask for a letter of preapproval from the lender, and while shopping for a house, they can potentially have the advantage over others because they can show the seller they are more likely to buy the house!
Preapproval is completely based on the documentation the borrower supplies at the time of application. The eligibility to receive the preapproval loan depends on the terms and conditions on the preapproval ability to secure the loan before the preapproval expires!