A Prequlaification letter and a PreApproval Letter can be obtained from a lender that has reviewed your financial health and deems you ready to purchase a home. The difference between the two is that the lender actually requests to see documents such as paystubs, W-2’s and bank statements and verifies the information for a PreApproval Letter.
The lender looks at your income and debt, calculates a debt to income ratio and makes a determination on how much you can borrow based on that data. It is a ‘must have’ before submitting an offer on a property because it gives a seller confidence that you are a qualified buyer. In addition, these letters help you and your Realtor determine your budget before even shopping for a home.
Contact us for a list of lenders that have been servicing our clients and have received high recommendations.