If the buyer has secured a preapproval, once an offer has been accepted, the journey to closing will be much faster as opposed to a prequalification. That’s why preapproval is a common way buyers can make their offer more attractive to a seller in a seller’s market.

An appraisal will be part of any home purchase that involves a mortgage lender, as it’s a universal lender requirement, exceptions for cash offers may be applicable. The appraisal findings will determine how much the buyer’s lender will allow them to borrow. Some contracts will include an “appraisal gap” agreement, in which the buyer agrees to cover any gap between the appraisal value and the loan value. These agreements typically come with limitations to protect the buyer from paying too much to cover a gap.