What is a preapproval Letter?
A preapproval letter is a document from a lender stating that the lender is tentatively willing to lend to you, up to a certain loan amount. This document is based on certain assumptions and it is not a guaranteed loan offer.
Why you need a preapproval letter?
- Assist you to find suitable properties
- Some sellers feel more comfortable to review the preapproval letter before accepting an offer
- Listing agent may require preapproval letter before a home showing
How to get a preapproval letter?
- You may contact your familiar banks or local lenders
- You may ask friends or family for recommendation
- You may consult with your agent if he or she can recommend a list of lenders for you.
- You may search online