A pre-approval letter is a document that states how much a lender is willing to loan you for a new home. Having one helps you understand how much home you can afford.
If your loan application is pre-approved, the lender issues a letter.
This letter outlines the terms of the offer:
+ the maximum allowable purchase price,
+ any applicable lending fees, and
+ the interest rate the lender has tentatively agreed to extend you.
The letter is valid for a specific window of time, such as 30, 60, or 90 days.
The lender may ask for updated financial documents when you're ready to move forward with the mortgage process.
We have three preferred lenders that have worked with our affordable programs in the past.