If you’re looking for home buying tips, consider working with your lender to get a preapproval letter. While this letter isn’t required, it can give you an advantage over other shoppers.

What It Is

This letter shows sellers how much your lender says you can afford to spend on a home. It also may have the terms the lender is willing to agree upon for a loan. The lender accounts for how much you earn versus how much debt you have. Doing this early in the process can save you time and hassle.

Why Sellers Like It

In a competitive market, you want to stand out as much as possible among other prospective buyers. The preapproval letter also proves to the seller that you are serious and ready to close on this property.