What Is A Pre-Approval Letter?

Thomas Martin Staff asked 7 years ago

A preapproval letter is a document which a home buyer can receive from a mortgage broker or lender that tells them that, based upon the information provided at the time of application, they have a probability of being approved for a particular loan product. Home Buyers use these letters to reassure home sellers of their ability to receive the financing and funding necessary to close on the purchase of property. Pre-Approval letters are non-binding and are not legal documents. Rather, they are a professional assessment of a borrowers potential financial capability.

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