Preapproval letters typically begin stating that a home buyer has been qualified or preapproved to buy a home priced at specific amount.  What it really boils down to is how much mortgage payment the home buyer qualifies for based on the borrowers monthly income and the debt to income ratio that is being allowed by the program guidelines.   Your proposed mortgage payment determines the loan amount that you’re qualified for.   Add the funds to cover your down payment less the closing cost and you’ll have the sales price.

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