Pre-Approval Through Making an Offer
The home buying process begins with mortgage pre-approval — not pre-qualification. Pre-qualification is an informal estimate based on self-reported finances. Pre-approval is a formal lender evaluation of your income documents, tax returns, pay stubs, bank statements, and credit score. Pre-approval gives you a specific dollar amount you're approved to borrow, signals to sellers that you are a serious buyer, and sets your realistic search price range. With pre-approval in hand, you work with a buyer's agent to find homes, tour properties, and analyze comparables. When you find the right home, you submit a written offer that includes the purchase price, earnest money deposit (typically 1–3% of the price, showing good faith), contingencies (conditions that must be met for the deal to close), and a proposed closing date. Sellers can accept, reject, or counter your offer. Negotiations typically involve price, closing date, seller concessions (asking the seller to pay part of your closing costs), and included items (appliances, fixtures). In competitive markets, you may waive certain contingencies to strengthen your offer — each waiver adds risk you must consciously accept.