Getting a mortgage pre-approval letter is important because it gives home buyers an idea of what they can afford. A mortgage pre-approval letter is issued by the lender and identifies the terms, loan type and loan amount the buyer qualifies for after checking the buyers debt to income ratios along with cash on hand and credit history.
Some sellers and their agents require a mortgage letter with any home offer that isn't all cash, since it acts as proof the buyer has beenqualified to get financing
