The real estate market is soaring because of low interest rates that have brought home buying to average Americans. All over the country, more renters are buying and homeowners are upgrading their properties. In this hot seller?s market, a pre-approval letter from your mortgage lender can help you secure a winning bid on the home of your dreams.

A pre-approval involves much more than filling out a questionnaire. It is essentially going through the entire mortgage application process and having the lender give you an exact figure of how much money they are willing to lend you and at what interest rate. Having the letter is like having the cash in the bank. This shifts your focus from financing to getting the best real esttate agent and finding the best home that you can afford.

Pay attention to the terms of the letter before you start shopping for your home: What terms did your mortgage lender extend?

A simple prequalification where they took down your information and made an informal guess of what type of loan you will receive is usually not very effective. This basic prequalification of course is subject to running a full credit check, full disclosure of your assets, and no drastic changes in your financial situation.

Any lapsed payments on credit cards, student loans or a job change, can give your mortgage lender sufficient reasons to back out of the deal.

Here?s how to get the maximum benefitts out of the pre-approval process:

1. Start by using the resources on any major search engine. Look for ?mortgage lenders,? ?home loans,? or ?pre-qualify for a mortgage?.

2. Fill out an application and make sure it goes through the underwriting process. If you?re not sure, call the lender using their customer service number and ask them what happens after all the information is submitted.

3. Find out if there a