The pre-approval letter is used by the buyer, but what does it mean. Does it reflect all of your disposal income? Will the amount that I am pre-approval for mean something?
As a buyer, you are excited because you have a pre-approval letter, but what does it mean. The pre-approval looks at your income to debt ratio true enough; however, are you aware that all your debt is not concerned. What debt you ask? The light bill, water bill, phone bill, grocery bill, cable bill, clothing bill, etc. That may be depending on where you live a lot of money and depending on your taste.