The Nest

NestApple's Real Estate Blog

Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.

Getting a mortgage “pre-approval letter”

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What is a mortgage “pre-approval letter”?

One of the first things a serious buyer must do once they’ve decided to begin the process of buying a home is to get pre-approved. Being pre-approved by a lender is an easy ordeal. The lender you chose for this does not necessarily have to be your mortgage lender; which means you can pretty much go to any bank and get it done.

As our friends at credit.com explain, “Mortgage pre-approval is basically a promise from the lender that you’re qualified to borrow up to a certain amount of money at a specific interest rate, subject to a property appraisal and other requirements.

However, it’s important to consider a serious and credible bank since this document is going to be one of the first introductions to the seller. To issue a pre-approved letter the bank will look at your following information:

  • Credit History
  • Employment
  • Income
  • Debt

These sources of information will provide an x-ray of your finances and the capability of paying back your mortgage. Additionally, it will give the lender a preview of which products best suit you and determine what’s your maximum capability of borrowing. The pre-approved letter will specify the maximum amount you can borrow and the rate at which you’d borrow. It does not mean you are prequalified nor does it guarantee a mortgage but provides significant weight on your offer.

These letters are good for 60 days approximately. We advise clients to get updated versions before submitting a serious offer; this will improve credibility and sincerity.



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Georges Benoliel

Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.