What is a mortgage pre-approval letter?

Mortgage Application Approved

One of the first steps in purchasing a home or real estate is to get a mortgage pre-approval letter from a bank, credit union or mortgage company.  A mortgage pre-approval letter is customary when submitting an offer on real estate in Texas.   Buyers can contact any mortgage lender and request a pre-approval letter.  The lender will ask for income information for the applicant and will  pull a consumer credit report on the applicant.

The pre-approval letter will state if the applicant is likely to be approved for a mortgage loan and the price of the home or real estate the borrower is qualified to purchase based on their credit and income.  Mortgage pre-approvals are based on the applicants income a credit at the time of application and can be revoked or modified if their income or credit changes prior to closing.  Sellers of real estate expect a pre-approval letter be submitted with all purchase offers and will generally not consider an offer without one.