No. of Recommendations: 1
But it's a meaningless piece of paper that sellers want to see.
Exactly. Most agents representing a seller won't even accept an Offer to Purchase without one.

Well, that's because it's not just doesn't have the meaning the title implies. You are not pre-approved for the loan, rather it just demonstrates that you have gone through the bare bones qualification steps that show the lender would be willing to contemplate giving you the loan.

Too many people would waste everyone's time and money making offers they have no chance of being able to pay for if this step were not in place. Once upon a time it was the buyers agent that qualified them, but it often did not get done and not always done well. This is supposedly a less biased way of qualifying someone.

Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.