When a lender commits to a loan before the borrower finds a property to buy
Even if you have not found a property, some lenders will give you a written preapproval on a loan.
The benefits to getting a preapproval are:
(1) you know exactly what you can afford to offer for a home
(2) you show a seller and your realtor how serious you are about buying a home
To get a preapproval, you have to fill out a standard loan application. Keep in mind that you the lender can only guarantee (lock) the loan’s interest rate once you have found a property.
