"Could pre-approval actually hurt me in a negotiation? For example, I have been pre-approved for a loan of $200,000, and I want to buy a house listed at $180,000. I want to offer $175,000, but the seller will know I can afford more."

Usually, pre-approval is to the buyer's advantage. But a careless pre-approval letter can do you more harm than good.

At The Buyer's Edge, we never reveal a client's financial position until the contract terms are set. If the seller knows you can afford more than he's asking, will he be willing to negotiate a lower price? Of course not. The seller will stand firm, gambling you want the house enough to pay his price.

As exclusive buyer agents, it's our job to make sure the buyer maintains a strong negotiating position.

We pay strict attention to every detail of the process. We advise our clients to get a pre-approval letter only for the amount of the asking price and not a penny more. We also suggest clients direct the lender not to discuss any specific dollar amounts with the listing agent.

A listing agent will want to know how high the buyer can go because that helps the seller negotiate. An exclusive buyer agent will keep financial details confidential because our goal is to level the playing field for the buyer.

It's a good idea for buyers to get pre-approval. It helps focus your home search and saves time, frustration and money.

Pre-approval lets sellers know you are qualified and serious about buying a home. But it's important that the pre-approval letter works for you and not against you. That's where choosing the right real estate agent makes all the difference.