What is a A Mortgage Pre Approval Letter ?
A preapproval is a loan officer’s professional judgment that you will be approved for a mortgage once you sign a contract to buy a home. Not all preapprovals are equal.
An ideal pre-approval is based on the following:
-Credit score and history
-Income including pay stubs, w-2 and tax returns
-Desktop Underwriter Software
Getting a preapproval is the 1st major obstacle you have to get your mortgage. And the 1st step is to have your credit pulled.
When done correctly, a preapproval letter gives you peace of mind knowing you will be approved and is your 1st step to home ownership.