We have mentioned it before, but to remind you, you are allowed to get multiple pre approval letters. Each pre approval letter comes with an expiration date so this is something that is likely necessary for you to do. There are many factors that make today’s housing market difficult, so finding the perfect home for you and your family may take months. When you find your dream home, you will want to make sure your pre approval letter is current so you do not have any potential obstacles in your way.
In case you need a reminder, a preapproval letter is proof that a lender has confirmation that your finances have been checked and they would lend you a certain amount of money. The letter shows a potential seller that you are indeed a qualified potential buyer. However, just because you have a pre approval letter, keep in mind that it is not a binding agreement with the lender. There will be a more detailed process of getting fully approved for a loan. As long as all goes according to plan, your finalized loan and your pre approval letter will likely have similar amounts and terms.
Also, you can also get pre approved with multiple lenders, at the same time. This means that you could potentially have multiple current pre approval letters. Some experts actually recommend that you get a minimum of three pre approval letters from three different lenders. The reason for this is that each lender will likely approve you in different amounts as it pertains to interest rates, loan amounts, closing costs, etc. By getting these multiple letters, you would be able to compare and see which potential loan would be the best for your family.
Each letter has a different expiration date. Some will be current for sixty days, while some will only be current for thirty. If you do not find a home to purchase before your letter expires, you can easily renew the letter. There are no penalties or issues if you have to renew your letter multiple times.
As you can see, it is beneficial for a few different reasons of obtaining pre approval letters.