What are the advantages of getting preapproved?

Getting pre-approved lets you know exactly how much you qualify for, so you can target your home search the that price range. It will also let sellers know that you are a serious buyer.

You know what price range home to search for.

Most Realtors will NOT let you make an offer without being pre-approved. The pre-approval process, when done correctly, means that a lender has taken a full application, reviewed credit and your supporting documentation, like W2's, pay stubs, and bank statements. If the review looked good, they issue a pre-approval letter, and discuss with you loan options, and proper home price ranges you can afford. The pre-approval letter tells the sellers that you are serious, and that you have a very high likelihood of actually obtaining the loan. This helps prevent them from wasting time on people who will never actually be able to get financing. www.MinnesotaBestRates.com