How do I get a Preapproval Letter?

May 30, 2014 Marc Edelstein Uncategorized 0 Comments

How do I get a Preapproval Letter?As we head into June, it is time to start thinking about making offers on those houses you have spent the last month looking at. And the first thing you need in order to put that offer in is a preapproval letter. This is a letter from a reputable lending company which states that, given current conditions and factors, you should be able to receive a mortgage for a certain dollar amount. There was a time a few years back when these letters were not usually required, but given the difficulties people are having with getting their financing together, all sellers now require this letter.

So, how do you get a preapproval letter? Well, it’s pretty easy; you contact a qualified mortgage officer and you discuss your current situation. The mortgage officer will discuss your finances, including current W-2, 1099, and business earnings. The mortgage officer will also ask about any current real estate that you own, any current mortgages that you have, and any other current debt. The officer will ask about your current assets, whether they are bank accounts, investments, or retirement accounts. Finally, the mortgage officer will pull your credit to be sure you can credit qualify.

Once all of these steps are complete, the officer will determine how much house you can afford. With this information, a preapproval letter can be generated which allows you to put an offer on the house of your dreams. I usually recommend getting this letter before you begin looking at houses, so that you know what houses to look at and so that you can quickly put in an offer if you find a house you like.

If you have any questions about the preapproval process, please contact me. And if you have anything to add about the process of obtaining a preapproval letter, please leave a comment.

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