Don’t Forget Your Preapproval Letter

When youโ€™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 isnโ€™t an absolute guarantee that youโ€™ll be approved for a loan, theyโ€™re a good indication that you will beโ€”and theyโ€™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, youโ€™ll have to make sure your credit scores are up to par and that you have enough money saved to buy a house.

First, youโ€™ll complete the lenderโ€™s questionnaire or sit through a telephone interview (during which the interviewer will complete the lenderโ€™s questionnaire for you).

The lender will give you an estimated preapproval amount. If youโ€™d like an official preapproval letter, the lender will need to pull your credit report.

As long as you meet the lenderโ€™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, youโ€™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 youโ€™re serious, which can make you stand out among multiple offers (and thatโ€™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, thatโ€™s great; if not, weโ€™ll get there.

Weโ€™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

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