These are the steps you can take to strengthen your pre-approval letter.
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How do you ensure pre-approval success for your home loan? Even with a pre-approval letter from your lender, it's crucial to remember that it does not guarantee the loan. To improve the chances of getting a stronger and better pre-approval, I’m sharing a few steps you need to take.
When meeting with your lender, ask if they have run your Desktop Underwriter (DU) or Loan Prospector (LP) approvals for the loan. For a USDA loan, inquire about the Guaranteed Underwriting System (GUS) approval. These automated systems analyze your data and provide a pre-approval based on the guidelines for various loans. The result will indicate "approved eligible," "denial," or "refer." Aim for an approved eligible status to increase your likelihood of securing the loan.
Before purchasing a home, request that your lender run the DU, LPA, or GUS, and provide you with the approval letter, which is typically a 6- or 7-page document. This will help ensure your success in obtaining financing.
For any questions, feel free to contact me. You can call or email me anytime. I look forward to hearing from you!
