How much house can you afford? The answer to this question is based upon several factors. First your own personal "financial comfort level" and secondly, your financial condition. You may qualify for a loan amount that is greater than you comfort level. Stay within your comfort zone.

What is a pre-qualification? A pre-qualification is an estimate of how much you can afford in a mortgage payment. A pre-qualification is just that, an estimate. It is based upon the information you provide, and is subject to the approval process, including further details such as a credit report, appraisal, and income verification.

What is a pre-approval? A pre-approval is different. It is a firmer commitment on behalf of the mortgage company. The credit report is already done, and the terms are subject to the appraisal of the house you intend to purchase. A "pre-approval" gives the home buyer an advantage in the marketplace. It is easier to negotiate with a home seller, and closing the transaction usually takes a shorter period of time. Pre- approval also makes the home buying process less stressful knowing that you're already approved.

1). Getting pre-approved gives the buyer a definite price range to be looking in.

Here is an example of what happens "if"  the buyer does not get pre-qualified….

4). Getting pre-qualified will make your offer stronger to a seller.