What is a Pre-approval Letter?
A lender's pre-approval letter shows that you should have the financial resources to afford a home at a certain dollar amount. However, it's a not a guarantee of the actual loan. However, it carries a lot of weight in purchasing a home in the Houston area and sellers won't even consider offers without it.
In order to be pre-approved, you must provide the lender income and credit information. Barb will provide a list of her preferred lenders for you to choose from. Once this information is verified, the lender will issue a pre-approval letter showing the type of loan, amount and current interest rate. If you're serious about buying a home, you need to have this in hand before seeing any homes.