What is a Verified Approval Letter?
How a Verified Approval Letter Can Help You
Even in a slow or buyer’s marketsellers want to know that a sale will not fail before closing.
When a seller takes their home off the market to enter into a contract with a buyer, they do so in the hope that the buyer will be able to follow through on closing. If the buyer’s financing fails at the last minute, the seller must put their home back on the market and start the long process all over again.
Sellers usually don’t want to go through all these hassles, so reassure them that you’ll be able to honor your end of the bargain may be worth quite a bit when you make an offer on their home.
Verified approval provides that assurance and shows that you’ve gone through the subscription processmaking your offer more attractive to sellers in a competitive market.
Pre-Approval Vs. Verified Approval
Obtain a pre-approval letter for a mortgage may seem the same as receiving a VAL (and in some cases it may be). The problem for clients is that some lenders and other real estate professionals use the terms prequalification and preapproval interchangeably. There is a big difference.
A prequalification may or may not involve a credit check and only verbal or written estimates of your income and assets. But a verified approval can go one step further by verifying your financial documentation as well. The process involves a credit check, but submitting your additional documents for verified approval can all but guarantee that you’ll be able to secure a mortgage for your home purchase and save you time later on. the mortgage application process.
To be prequalified or preapproved may show that you have the credit to take out a mortgage, but only a strong pre-approval like a verified approval letter proves that you also have the financial stability.