Here’s what a pre-approval letter is and why buyers need one.
What is a pre-approval letter, and do you need one? The short answer is yes, you need a pre-approval letter. It’s a qualification from your bank or lender stating that you can buy a home at a certain price. In our current real estate market especially, pre-approval letters are crucial. Most sellers won’t even consider an offer without one since they can’t confirm or deny that you’ll be able to purchase the home.
When you go to get a pre-approval, there are a few main criteria they’ll need to calculate the pre-approved number: credit scores, current assets, loan-to-value ratio, and a few other things. You need to shop around with local banks and credit unions to compare their rates to find which one to use as your lender.
I can’t emphasize enough the importance of working with a quality, local lender. Our team has had great success working with our local lending partner, Freedmont Mortgage. They have an excellent understanding of the local markets in both Maryland and Pennsylvania, so if you have any interest or questions about reaching out to them, let us know.
If you have further questions about pre-approval letters or finding a lender, call or email us. We would love to help you.