When you’re ready to purchase a home, your real estate agent will probably tell you to get a preapproval letter from a lender. While a preapproval letter isn’t an absolute guarantee that you’ll be approved for a loan, they’re a good indication that you will be—and they’re considered more reliable than a prequalification letter.
How to Get a Preapproval Letter from a Lender
Any time you want a lender to extend you credit, you’ll have to make sure your credit scores are up to par and that you have enough money saved to buy a house.
First, you’ll complete the lender’s questionnaire or sit through a telephone interview (during which the interviewer will complete the lender’s questionnaire for you).
The lender will give you an estimated preapproval amount. If you’d like an official preapproval letter, the lender will need to pull your credit report.
As long as you meet the lender’s guidelines, they will give you a preapproval letter.
What to Do with Your Preapproval Letter
Once you receive a preapproval letter from a lender, you’ll know how much home you can afford. Share it with your real estate agent, who will then be able to help you act quickly when you find the perfect home.
A preapproval letter shows sellers that you’re serious, which can make you stand out among multiple offers (and that’s always a good thing).
Working with an Expert Main Line Real Estate Agent
Call us at 610-608-3119 or contact us online. If you already have a preapproval letter, that’s great; if not, we’ll get there.
We’ll help you find the perfect Main Line home for sale and be with you every step of the way.
Links:
Understand Your Credit
How Much Do I Have to Save to Buy a House
How Much Home Can You Afford