A mortgage pre-approval letter demonstrates an applicant’s creditworthiness and ability to obtain a loan by the lender based upon a credit evaluation. The pre-approval letter is not a mortgage loan commitment. The letter shows the seller that you are financially able to close the transaction based upon lender approval, if the seller accepts your offer to purchase the home. You also have the opportunity to obtain several pre-approval letters from different lenders and mortgage brokers before making a commitment to a mortgage loan.
Borrowers can compare mortgage loans with different lenders and choose the best deal that fits their budget and financial profile. Lenders and brokers offer different interest rates, fees and points. After evaluating offers from each lender, you have the opportunity to save money by negotiating with lenders to obtain an affordable mortgage loan.
disclaimer: for information and entertainment purposes only