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A pre-approval letter is crucial for homebuyers as it strengthens their position in a competitive market. It provides a clear indication of the buyer’s borrowing capacity, giving sellers confidence in the buyer's financial reliability. This document, issued by a lender, confirms that a buyer has undergone a thorough financial check and is likely to secure a mortgage up to a specified amount. With a pre-approval letter in hand, buyers can streamline their home search, negotiate more effectively, and expedite the closing process. It’s a vital tool for demonstrating seriousness and financial readiness, making it an essential step in the homebuying journey.
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