When a lender commits to a loan before the borrower finds a property to buy

Even if you haven't found a property, some lenders will give you a written preapproval on a loan. The benefits to getting a preapproval are: (1) you know exactly what you can afford to offer for a home (2) you show a seller and your realtor how serious you are about buying a home and (3) you'll sleep better at night. To get a preapproval, you have to fill out a standard loan application called a 1003. Keep in mind that you the lender can only guarantee (lock) the loan's interest rate once you've found a property.

Compare: Prequalification