Reply to Where to start with mortgage prequalification?

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[quote=Anonymous]If you're obtaining this just to find out what someone will lend you, a pre-qualification is fine, but if you want it to give you leverage when making an offer on a property, a pre-approval letter will be much more valuable, especially one customized to that property.  It tells the seller that someone has said yes, they will loan you money for this property, and thus signal that your financing is less likely to fall through.

The difference is for the pre-approval they will need to actually evaluate all your financials, pull credit, etc.  But then you're already halfway there for applying for the loan if you choose to go with the same lender.

However, you do NOT have to get the mortgage from the entity who pre-approved you.  Once your offer is accepted you can call around and shop for rates and apply for the mortgage with whomever you choose.

So while it's recommended you talk to a few lenders, it doesn't matter all that much who pre-approves you.  You can go with banks, direct lenders, or a broker.[/quote]

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