Shopping for a home may be exciting and fun, but serious homebuyers need to start the process in a lender’s office, not at an open house.
Most sellers expect buyers to have a pre-approval letter and will be more willing to negotiate with those who prove that they can obtain financing.
Here’s what to look for in a pre-approval letter:
🔸 Loan amount:
This is the maximum you can borrow.
🔸 Status date & expiration date:
How long the pre-approval letter is valid for (most are 90 days from when credit is run)
🔸 Mortgage type:
What type of loan were you approved for? FHA, VA, USDA, Conventional.
🔸Terms and conditions:
The length of the loan and any document and funding requirements.
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