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Pre-approval, on the other hand, means that the potential buyer has submitted almost all the documents necessary to be granted a home loan. The lender has checked the potential buyer's credit and other financial information, and is reasonably certain that it will extend a loan to the buyer. At this stage, the buyer knows the maximum amount the lender will give her, and she is in a stronger bargaining position with the seller because she is a viable buyer who will be able to close more quickly than a buyer whose loan has not already been approved. |
