Pre-qualification Letter Vs. Pre-approval
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.
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