{"id":4170,"date":"2024-11-07T13:53:44","date_gmt":"2024-11-07T18:53:44","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=4170"},"modified":"2025-02-10T12:20:56","modified_gmt":"2025-02-10T17:20:56","slug":"what-is-a-pre-approval-letter-your-must-have-for-home-buying-success","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/what-is-a-pre-approval-letter-your-must-have-for-home-buying-success\/","title":{"rendered":"What is a pre approval letter? Your must-have for home buying success"},"content":{"rendered":"\n

Strap in! Before you kick off your house hunt, there’s one essential document you absolutely need: the pre approval letter. What is it, and why should you care? Let\u2019s break it down!<\/p>\n\n\n\n

<\/p>\n\n\n\n

What exactly is a pre approval letter?<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Imagine this: you stroll into a bank or lender, and they dive into your financials\u2014credit score, <\/a>income, debt<\/a>, the whole picture. After their thorough analysis, you either get a thumbs-up (or a \u201cnot quite yet\u201d if your finances need a little TLC). That thumbs-up? It\u2019s your pre approval letter. It screams to sellers, \u201cHey, I\u2019m a serious buyer, and I\u2019ve got the financial backing to prove it!\u201d It will detail how much the lender is willing to lend to you, (how much debt they believe you can reasonably afford to take on). Your lender wants to protect you from biting off more than you can chew, and ending up in a situation like a foreclosure<\/a> which would seriously impact your ability to get a mortgage <\/a>in the future.<\/p>\n\n\n\n

<\/p>\n\n\n\n

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How much home can I afford? <\/a><\/div>\n<\/div>\n\n\n\n

<\/p>\n\n\n\n

Why do you need one?<\/h3>\n\n\n\n

<\/p>\n\n\n\n

    \n
  1. Sets your budget<\/strong>
    <\/strong>Without a pre approval letter, you\u2019re basically blindfolded, taking shots in the dark. This letter gives you a clear budget, sharpening your focus on what you can realistically afford. <\/li>\n\n\n\n
  2. Strengthens your offer<\/strong>
    <\/strong>Sellers love a solid pre approval letter. It shows you\u2019re not just browsing\u2014you\u2019re ready to buy. In a hot market, this could be the difference between snagging your dream home and watching someone else put up the \u201csold\u201d sign.<\/li>\n\n\n\n
  3. Speeds up the closing process<\/strong>
    <\/strong>Having your finances in check speeds up closing. Sellers want assurance that you won\u2019t get cold feet or hit financing roadblocks. A pre approval letter tells them you\u2019re all in and can make an offer asap.<\/li>\n<\/ol>\n\n\n\n

    <\/p>\n\n\n\n

    How do you get one?<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    Step 1: Choose your lender
    <\/strong>Shop around! Not all lenders are created equal. While some lenders don\u2019t take the time necessary to prepare a strong pre approval and offer letter, this is critical to making a successful offer on a new home. Here at Tomo Mortgage, our online pre approval only takes 15 minutes, and it includes a     soft credit check<\/a>\u2014but way more reliable when you\u2019re making an offer on a home.<\/p>\n\n\n\n

    Step 2: Submit your financials<\/strong>
    <\/strong>Get ready to share your financial documents\u2014tax returns, pay stubs, bank statements, and any debt details. The more transparent you are, the smoother this process will go.<\/p>\n\n\n\n

    Step 3: Get approved!<\/strong>
    <\/strong>Once the lender reviews your info, they\u2019ll tell you how much you can borrow. If everything checks out, you\u2019ll receive your pre approval letter!<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    \n
    Get started on my pre approval<\/a><\/div>\n<\/div>\n\n\n\n

    <\/p>\n\n\n\n

    How long does it last?<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    Typically, a pre approval letter is valid for about 60 to 90 days. If you haven\u2019t found your dream home in that timeframe, no worries! Just check in with your lender to update your financials and score a fresh letter. If you choose to go with us at Tomo Mortgage <\/a>you\u2019re in luck! Our pre approval letter<\/a> is good for 120 days, giving you an extra month of home searching before you\u2019d need to reapply.\u00a0<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Does getting pre approved hurt my credit?<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \u00a0Not if you\u2019re smart! When lenders pull your credit for pre approval, it can be a hard credit check, where you will see a temporary dip in your score, or a soft credit check, meaning your score won\u2019t take a hit. We offer a verified pre approval with a soft credit check, so your credit won\u2019t take a ding, but you can walk into any open house ready to make a strong offer.\u00a0<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Can I be denied after getting pre approved?<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    Unfortunately, yes. Pre approval is based on your financial situation at that moment. If your circumstances change\u2014like losing a job or piling on more debt\u2014you might face denial when it\u2019s time to finalize your mortgage.<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Do I have to stick with the same lender after getting pre approved?<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    Nope! Your pre approval letter doesn\u2019t lock you into a specific lender. Feel free to shop around for better rates and terms until you find the perfect fit. Our rates are typically 0.48 points lower than the average mortgage lender in America. See if we can save you money.<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    \n
    See today’s rates<\/a><\/div>\n<\/div>\n\n\n\n

    <\/p>\n\n\n

    Claire Gallaudet<\/a><\/p>

    Claire is a Mortgage Analyst at Tomo, where she explores the data and trends shaping the housing market. She is especially interested in how economic forces impact homebuyers. A Seattle native, she now lives in Austin, where she balances analysis and communications with teaching yoga and walks around the lake with her dog.<\/p><\/div><\/div>\n\n\n

    If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Strap in! Before you kick off your house hunt, there’s one essential document you absolutely need: the pre approval letter. What is it, and why should you care? Let\u2019s break it down! What exactly is a pre approval letter? Imagine this: you stroll into a bank or lender, and they dive into your financials\u2014credit score, […]<\/p>\n","protected":false},"author":31,"featured_media":4192,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,288,38],"tags":[68],"class_list":["post-4170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying-guide","category-home-buying-process","category-mortgage-dictionary","tag-pre-approval"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2024\/11\/whats-a-pre-approval-letter-jpg.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/comments?post=4170"}],"version-history":[{"count":3,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4170\/revisions"}],"predecessor-version":[{"id":4241,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4170\/revisions\/4241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media\/4192"}],"wp:attachment":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media?parent=4170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/categories?post=4170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/tags?post=4170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}