This is the process of providing your financial information and overall personal profile to a lender for the sake of getting a pre-approval letter, so that you can go out and shop
for a new home. The pre-approval process, should allow for the lender to pull your credit and analyze your financial picture to determine how much home you may or may not qualify to purchase. The process will also allow for a lender to give figures for monthly payments, down payment options and overall general interest rates. Getting a pre-approval letter is the starting place for shopping for a home, since it allows your real estate agent to show you homes that you qualify for and helps you provide valuable insight to your real estate agent on your loan needs.
Once you are pre-approved, you will be provided with a pre-approval letter that allows you to go out and shop for homes. this letter is usually provided to the seller when writing an offer to show them your credit worthiness. If you decide to shop for houses without this letter, you may find yourself up against other buyers who are pre-approved and could possibly lose your dream home because of it.