Get a pre-qualification or pre-approval letter before you start to tour homes.
Pre-qualification letter: Provided by your lender after checking credit and receiving a completed application where you state job financial status. The letter shows the loan amount you can expect to be approved for. This letter from your lender is likely good enough to validate your offer with a seller.
Pre-approval letter: Your lender provides this after checking credit and thoroughly verifying source documents detailing your financial situation. This letter means you are already approved for the loan amount.
Advantages of pre-approval
- makes your offer stronger in the eyes of the seller since it lowers their risk
- increases your odds of getting selected in a multiple offer situation
- speeds up the underwriting process when in escrow
Key info on your lender letter
- your name (and co-borrower if applicable)
- lender name (and NMLS number)
- current date and expiration date
- loan amount
Share your lender letter safely
Our secure server will safely store financial documents you share, however, a good practice is to cross out any sensitive information, such as account numbers or social security numbers before upload.