Here’s What You Need to Know About Mortgage Pre-approval Letters
Thinking About Buying a Home? Here’s What You Need to Know About Mortgage Pre-approval Letters
If you’re thinking about buying a home, there are a number of items you’ll want to cross off of your home-buying to-do list.
But what about mortgage pre-approval letters? Do you need to get a pre-approval letter before you start your home search?
A recent article from realtor.com outlined everything you need to know about mortgage pre-approval letters—and whether you need one before you start looking at homes—including:
What is a mortgage pre-approval letter? A mortgage pre-approval letter is a letter potential buyers receive from their lender; it confirms that the buyers are pre-approved for a home loan of a specific amount.
Do you need a mortgage pre-approval letter before you start touring properties? While you don’t technically need a pre-approval letter before you start looking at homes, the letter shows that you have the financial means to purchase a property—and many agents will want that reassurance before they spend their time and energy showing you homes.
What are the benefits of getting pre-approved? Getting a mortgage pre-approval letter shows agents and sellers that you have the financial means to buy a home. If you decide to put in an offer, this can make your offer more attractive than buyers without a pre-approval letter—and can increase the likelihood that your offer will be accepted.