Conventional wisdom is what we are seeing in replies below. The approval letter, especially now a days in the lending arena, means nothing. I means that if the buyer can prove what they told the loan officer on paper then and only then after the underwriter comes back with 150 stips will it possibly maybe close. Yes, it can make an unknowing seller feel good, but if you are working for a seller I would not trust the paper it is printed on.

Thu May 15 2008, 22:34

The approval letter does help when making the offer, it tells the seller that you are sincere about making a purchase and have gone the extra mile and started on the process. I have a team of mortgage consultants that my buyers can select from that also not only help with the pre approval/prequalification process and finding out a GFE-good faith estimate but also help with the budget process to ensure that my buyers are comfortable with thier monthly payments.
You should be able to get a pre approval letter within hours of speaking with the mortgage consultant and be sure to submit it with your offer to give the offer strength.

Mon May 12 2008, 19:17

In today's mortgage market, the most valuable pre qualification letter is one where the lender takes your information and runs it through desktop underwriting and then can accurately quote you a rate. If a loan officer is just using the income and debts you tell them without running your score, then your qualification does not have any credit, nor will the rate they quote you be accurate.

Visit the "Get Prequalified" section of my website

Mon May 12 2008, 18:45

A letter should be remitted almost immediately. A pre-approval letter is good for guidance; however, it really isn’t worth the paper it is written on -- particularly in this mortgage environment.

Sat May 10 2008, 12:12

Denise, All buyers should be prequalified prior to getting serious about house-hunting. This is a general approval by a mortgage lender that is rather generic in scope. What you really need, very soon after acceptance of the offer, is an unconditional committment letter from their lender. This means the funds are indeed alocated for the transaction and pending various conditions (such as the buyer keeping his job) serves as a firm assurance that the buyer is "locked and loaded". Unless it is a cash deal, always make this a condition of the contract acceptance.

Thu May 8 2008, 07:48

No, it takes minutes and the loan officer can email it to you and your realtor. It takes longer to get approved since you have to provide all the documents verifing your income, employment etc.

Thu May 8 2008, 07:28

A pre qualification letter only takes a few minutes. A pre approval can take longer, since there is a verifcation process of the data submitted. You need written documentation to support your offer and validate your capacity to complete the purchase. Start w/ a pre qual, which is very quick.

Shop loan officers for loan programs and personal service.

Thu May 8 2008, 04:14

Denise.

You better shop around.

Start talking to more mortgage professionals and real estate agents, face to face. Interview.

Network.

"They" aren't doing you any favors.

Thu May 8 2008, 03:46

Denise,

After they tell you are approved you should expect to get a letter within the hour. You might want to request it though. Some loan people don't hand them out.

You don't have to get one, in fact you don't have to see a loan officer at all. However, it's in your best interest to do this before going to see any homes and definitely before making any offers.

The approval letter helps when making the offer, it tells the seller that you are a legit buyer. More important to your immediate needs is the good faith estimate. Some foreclosure companies are asking for this as well and it gives you a more clear understanding of what to expect at the closing table.

Good Luck

Thu May 8 2008, 03:03

Hi Denise. No it should not take long to get a letter once you are approved for the loan and whether or not you need the letter depends on where you are at in the home buying process.

If you are looking at homes your agent will want to see the letter to ensure that they are honoring their oath to bring willing, ready, and able buyers into a property versus an unqualified buyer.

If you are submitting an offer on a home the seller will want to see that you are a solid buyer when you bring forth your offer. It gives your offer muscle.

If you are already under contract the contract will dictate if you have to provide a letter of approval. If you are past all contingencies then it is considered an all cash transaction so the letter is irrelevent; however, providing the letter to the seller can give them peace of mind.

Congratulations on taking advantage of this fabulous buyers market. I wish you great success in your new home!

Wed May 7 2008, 19:30

Denise,

Your lender should be able to give you a letter immediately after being pre-approved and you will need the letter to submit an offer on a home. Without the letter the seller will not take your offer as serious as someone who has one.

It's all about the negotiating power.

Please let me know if I can be of further assistance.

Also, in case you do not have a lender here is someone that I work with that I think you will like. Her name is Kim King with SunTrust @ 770-617-6694

Diane

Wed May 7 2008, 19:27

Usually, the seller will request a loan commitment or approval letter by a certain date. So yes you need one. In all honesty it should't take long at all after that to processes the loan. Once you are approved, the lender will issue conditions and final stipulations, once these have been furfilled, it will go to final underwriting and be issued a clear to close. The key thing is getting all of the information that the lender requests to them as fast as possible so they can forward it to processing. In the essence of timliness, if you are doing everything on your part it is up to the lenders service to get it done quickly. However, if you run into bumbs, it takes things long to get verified, ownknown situations, etc. This could extend the process. I wish you the best of luck!

Wed May 7 2008, 18:47