What is a Mortgage Pre Approval LetterA pre-approval letter for a mortgage?
Obviously, that is why getting a mortgage is such an important part of the whole mortgage making lifecycle. Ensuring mortgage conditions and pre-approval are important ways to assure creditors that you can make a payment. Prequalification and prior approval are, however, very different. There are mortgage pros who think you're practically worthless. Which is the prequalification for mortgages?
Prequalification means that a creditor has assessed your credit worthiness and determined that you are likely to be entitled to a credit up to a certain amount. However, here is the point: Most of the time the prequalification letter is an approach - no pledge - and is exclusively premised on the information you give the creditor and his assessment of your future finances.
Prequalification is merely a temporary picture that gives you an indication of what mortgage you could be eligible for. What makes mortgage pre-approval better? Pre-approval letter is the actual business, a declaration by a creditor that you are eligible for a certain mortgage amount and that you will be eligible for it on the basis of an underwriter's verification of all your finance information: loan reports, wage slips, statements of account, salaries, asset values and liabilities.
Advance approval should mean that your mortgage is subject only to the assessment of the house you have chosen, provided that nothing changes in your finances prior to conclusion. "This makes you as near as possible to a payee and gives you a great edge in a highly competitive market," says Lea Lea Lea Brown, VP and Mortgage Manager at PrivatePlus Mortgage in Atlanta.
Indeed, pre-approval letter, coupled with neat treaties with no tonnes of eventualities, have won tender battles against spot bids, says Brown. Whilst prequalification can be useful in establishing how much a creditor is willing to give you, a pre-approval letter will make a greater impact on the seller and let them know that you have the money to secure an offering.
Please visit MarketWatch for more intelligent finance messages and tips.