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A mortgage preapproval means that a lender has committed to issue a home loan of a specific dollar amount based on an extensive application process; prequalification is less formal and means that.

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Why Do Real Estate Agents Ask For A Pre-Approval One of the most common home buying myths that exists is that when buying a home, you should find a home before getting a pre-approval. There are some real estate agents who will show a home, or several homes, to a buyer without knowing whether a buyer is pre-approved or not.