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But it's a meaningless piece of paper that sellers want to see.
...
Exactly. Most agents representing a seller won't even accept an Offer to Purchase without one.


Well, that's because it's not meaningless...it just doesn't have the meaning the title implies. You are not pre-approved for the loan, rather it just demonstrates that you have gone through the bare bones qualification steps that show the lender would be willing to contemplate giving you the loan.

Too many people would waste everyone's time and money making offers they have no chance of being able to pay for if this step were not in place. Once upon a time it was the buyers agent that qualified them, but it often did not get done and not always done well. This is supposedly a less biased way of qualifying someone.

IP
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