Funding Source

When you do go house hunting you'll have a commitment letter in hand. Letting the seller know that your mortgage is already approved is the equivalent to several of making a cash offer. In times when homes are selling speedily, your offer carries more weight if it comes in against someone who has not applied yet. The seller may feel that the other offer comes with a longer wait for approval and maybe a decline. Whereas your loan comes conditioned on an appraisal. In times of slower home sales your approval could create leverage on the price of the home.