Why a verified mortgage pre-approval is better

In this article, I explain how a verified pre-approval letter improves your chances of getting the home you want.

When you're a homebuyer in a competitive real estate market, it can be frustrating to have your offers repeatedly rejected.

A verified mortgage pre-approval letter from NewCastle Home Loans strengthens your offer on a home, as it acts as proof that you can afford to buy it. In addition, a stronger pre-approval gives you the edge when competing with other offers by letting sellers know your loan is more likely to close on time without any issues.

What is a verified mortgage pre-approval?

A verified mortgage pre-approval involves a more detailed review of your financial documents and credit history. 

As part of the process, a certified mortgage underwriter—the person who ultimately makes the loan decision verifies your credit, employment, income, and the source of funds for your home purchase, ensuring that you meet the requirements for a mortgage. 

A verified pre-approval is more reliable and trustworthy than a basic one as it takes into account a more comprehensive view of your financial situation.

• Three steps to mortgage pre-approval

How can a verified mortgage pre-approval letter help me?

A verified mortgage pre-approval gives you a stronger bargaining position when making an offer on a home, as sellers and their agents know that a lender has already vetted you. 

Financing problems are a significant reason why home sales fall through. Before accepting your offer, sellers want to feel confident you can get the loan you need to buy their house. Therefore, the quality of the mortgage pre-approval letter is often the deciding factor for sellers.

A verified mortgage pre-approval letter from NewCastle Home Loans gives you an advantage over other buyers. 

• Know how much you can spend on a home so it's easier to zero in on the places you can afford. 
• Feel confident about making an offer because you know you're ready to buy.
• Improve the likelihood of winning the deal, especially when competing with other buyers.
• Save money by strengthening your offer and enhancing your negotiating power so you can buy the home you want at a fair price.
• Be ready to close in half the time because you're already approved.

Start now and get approved on the same day.

Is a verified mortgage pre-approval better?

A verified mortgage pre-approval is better because it involves a more thorough review of your financial information and provides a more accurate assessment of how much money you can borrow to buy a home.

Unverified pre-qualifications and pre-approvals are quick and easy and give you an idea of how much you can borrow based on basic information. However, they don't involve a full credit review or income or asset verification.

Big banks and online lenders typically rely on computer programs and sales staff to generate boilerplate letters. Nothing is verified by anyone who makes loan decisions. More and more, sellers' agents are turning away these canned pre-approvals because they need to represent what you can genuinely afford.

In comparison, a verified approval takes the application process a step further. At NewCastle Home Loans, we check your credit and collect proof of your income and that you have enough cash to close. Next, one of our underwriters confirms it. Then, we give you a pre-approval letter endorsed by the underwriter. 

If you're looking for a home or are ready to make a serious offer, a verified mortgage pre-approval from NewCastle Home Loans is the way to go. These approvals provide a more accurate estimate of what you can afford, enhance your negotiating power, and improve the likelihood of winning the deal. 

• Sales Contract Explainer

How do I get a verified mortgage pre-approval letter to buy a house?

To get a verified mortgage pre-approval letter, you'll need to follow these steps:

1. Apply for a mortgage pre-approval and agree to a free credit check.  
2. Upload your supporting documents to the Loan Dashboard. 
3. Get a detailed pre-approval letter to include with your offer.

Get a same-day pre-approval to make an offer quickly and take advantage of every opportunity to buy the perfect home.

Finding the perfect home to buy can take days or months, depending on many factors, such as the local housing market and your preferences. While looking for a place to buy, rely on us. We update your letter, answer questions, and guide you to homeownership, ensuring everything goes smoothly. 

• How a mortgage credit check affects your score

• When should you get pre-approved for a mortgage?

Can I be declined for a mortgage after pre-approval?

A mortgage pre-approval is not a guaranteed loan offer or a commitment to lend; it isn't the same as applying for a loan. You will officially apply for the home loan after you offer to buy a home and the seller accepts it.

There's always a chance that your lender may deny your loan after pre-approving you. But this is much less likely to happen if you choose the right lender. 

With most mortgage companies, loan officers process pre-approvals, which may need fixing for you. A loan officer is a salesperson rather than a loan decision-maker. So while a loan officer may want to secure the deal, they may only spot potential underwriting issues once you're gearing up to close.

You want your lender to carefully review your application at the pre-approval stage, eyeing your credit report and financial information upfront. With this legwork in the early stages, your final approval should be a breeze. 

For this reason, NewCastle works diligently on pre-approvals—it can make a huge difference in your ability to find a home and close quickly.

• See our Google reviews.

It's important to note that pre-approval is not a mortgage loan guarantee. When you're finally under contract to buy a house, you must apply for the loan and provide the lender with updated documents. After that, the lender completes a property appraisal before finalizing the loan. 

• What’s the difference between a prequalification letter and a preapproval letter?

• Pre-qualification vs. pre-approval

• How do I get pre-approved for a mortgage?