How to make your offer more attractive without increasing it 

Before you submit an offer on your dream home, get pre-approved or pre-qualified for a mortgage loan. Either one can make your offer more attractive to the seller, but they mean different things.

What are your qualifications?
To get pre-qualified for a mortgage loan, you provide a lender your approximate income, current debts and any important details from your credit history. The lender will then use these details to determine how much you may be eligible to borrow. You may receive a Conditional Qualification Letter from the lender, which determines your likelihood of getting a home loan. However, it’s important to know that all information submitted during pre-qualification is subject to verification when your actual loan application is submitted. There is no guarantee that you will receive a home loan until your financial situation is actually verified.

Seeking approval
Being pre-approved for a loan typically means that the lender has gone one step further and verified your financial situation. When you get pre-approved, you will complete a mortgage loan application and may have to pay an application fee. Your lender will commit in writing to fund your loan, but only after an extensive examination of your financial situation and pending a successful appraisal of the home and a few other conditions.

But I haven’t found a house yet
Being pre-approved for a mortgage loan doesn’t mean you are borrowing the money or that you are obligated to. It just means the lender must stand behind his written commitment to fund the specified amount unless something changes with your situation. Think about how attractive your offer will be to the seller if you submit it with a...