Why is Pre-approval Important

In the house-buying process, the benefit of being pre-qualified or pre-approved is twofold. Not only do you have the added comfort of knowing what you can afford, the seller may also accept your offer over another if you are pre-approved and the other party is not.

The logic here is that a pre-approved offer is more likely to result in a completed sale, while an offer by a buyer that has not been pre-approved is not such a sure thing. The seller often doesn't want to take the chance of losing the sale -- even if your pre-approved offer is slightly lower.