Game On: Pre-qualification Letter Vs. Pre-approval – Which Will Win?

BlogPre-Qualification vs. PreApproval

There are 2 kinds of Letters a lender will issue. They are very different and it is important to understand both.

Pre-qualification Letter

When you go to a bank to request a letter, the lender will ask you for your income and expenses and they will give you a number you can purchase a home with. This is the most basic type of letter.

Pre-approval Letter

This type of letter requires the same information from you. The difference is that the lender will run a credit check and verify the information you give them.

Both letter require documentation of your income and expenses. But the difference is thaat with a pre-approval letter you have verification that you really can purchase a home. Sellers and listing agents prefer the second in every case. And here in Hendersonville you may not have an offer accepted without pre-approval.

Understanding this will ensure that when you are ready to submit an offer on a home you will be taken seriously and will be more likely to have a positive experience.

Need assistance? Give me a call and I can connect you to a great lender!


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