Is a Pre-approval Letter Necessary?
1. Getting pre-approved for a home loan is valuable and necessary regarding the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to help determine an estimate of how much money you can borrow. The process is free and only take minutes to verify electronically and 24 hours to verify manually after receiving all required documents.
2. Lenders are not held responsible to honor a pre-approval; Keeping in mind that the information you provide has not been verified. On the other hand, your verbal information does serve as a good faith indication to potential sellers regarding your general ability to take out a loan.
3. Most sellers "Will NOT" accept an offer without at least a pre-approval letter, so if you are serious about purchasing a home, pre-approval is the very first step.