Is a Mortgage Pre-Approval Letter Necessary to Make an Offer on a House?

By
Mortgage and Lending with ChangeMyRate.com® A Mortgage Corporation NMLS #1326269

Do you need a mortgage pre-approval letter to make an offer on a house? You know you need to get your ducks in a row before looking at homes, but does that include securing a pre-approval letter from the bank?

The truth is, getting pre-approved can actually improve your chances of falling into the sellers’ good graces, so you want to get it done as soon as possible in the home-buying process.

So how organized do your financials need to be before you start looking? Let’s take a look, starting with clarifying what a pre-approval letter actually is.

What is a pre-approval letter?

Mortgage pre-approval is assurance from a lender to provide you with financing to buy a home up to a certain loan amount.

“It’s a letter from your lender, written on the lender’s letterhead, stating that you are approved for a loan of a specific dollar amount,” says Denise Shur, a Realtor® with 1:1 Realty in San Jose, CA.

To get approved, your lender will collect a stack of paperwork from you that will include pay stubs, federal tax returns, W2s, investment accounts, and residential history. Once your complete financial portfolio is analyzed, the lender will decide whether or not to issue you a pre-approval letter.

For more information about a mortgage pre-approval letter and how to buy a house, Read The SCOOP! Blog

 

Comments (3)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Jackie and Thank You for the great information here in the Rain.  Make it a great day!

 

Apr 25, 2022 01:26 PM
Jackie A. Graves

Hi Will, Thanks for your comment. Very much appreciated. Stay tuned for future posts and make it a great day.

Apr 26, 2022 02:54 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jackie A. Graves I don't know of a Realtor who would spending time showing houses to any Buyer without knowing how much they are qualified to purchase.  So the answer is "YES"

Apr 25, 2022 04:10 PM
Jackie A. Graves

Hi George, Thanks for your comment. Very much appreciated. Stay tuned for future posts and make it a great day.

Apr 26, 2022 02:54 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Jackie... while a pre-approval might not be "necessary" to make an offer, I haven't come across any sellers in years willing to consider an offer without an accompanying pre-approval letter. And I, personally, wouldn't waste time with a buyer without knowing their approval status.

Apr 26, 2022 04:59 AM
Jackie A. Graves

Hi Nina, Thanks for your comment. Very much appreciated. Stay tuned for future posts and make it a great day.

Apr 26, 2022 02:55 PM