Do I need an underwritten letter or a pre-approval letter?

With pre-qualification, you’ll supply an overview of your financial history to the lender, including income, assets, debts, and credit score. The lender will review this information to give you an estimate of what you would qualify for. A pre-qualification doesn’t always require documentation of your financial history; it can often be self-reported.

Underwritten letters usually require documentation and verification of your income, assets, debts and it will often require a credit check. Underwritten letter allows the lender to put a mortgage application through a more thorough initial validating process and removes most of the potential obstacles before approval is granted.

Underwritten letter is more attractive to sellers in a competitive market and is more likely to get selected in a multiple offer. Home sellers feel secure knowing that the mortgage loan approval requirements and documents have already been reviewed and signed off on by an underwriter. It strengthens offers by showing buyers’ commitment to buying.

If you want to have an advantage, the best option is to ask your loan officer for an underwritten letter. This tells the seller exactly how much money the bank will lend you, which will give you a great competitive advantage. Especially in the sellers market an underwritten letter can give you the best option. If you need more advice about it you know you can call me, I will make it simple and safe!