What types of pre-approval letters does Better Mortgage offer?
Better Mortgage offers two types of letters. The first type of mortgage pre-approval is the basic pre-approval letter. This letter is based on your stated income and a soft credit pull. We have not reviewed any of your documentation. These letters are great for getting a general sense of what you can afford and can be fine to use in certain markets, where agents and sellers don’t require something more fully vetted.
The second type of pre-approval for a mortgage is the verified pre-approval letter. You upload financial documents such as paystubs, tax returns, and bank statements for us to review and we determine the amount of qualifying income and assets we can use based on industry guidelines. This letter is great if you want more certainty about what you can afford and if you are buying in a competitive market where agents and sellers require a more fully vetted pre-approval letter.
How to choose between types of mortgage pre-approvals
When deciding between the types of mortgage pre-approval, it’s important to consider the competitiveness of the housing market you’re entering. In less competitive markets, a basic pre-approval may be enough to give you a general idea of your budget and make an offer.
However, a verified pre-approval letter can give you a stronger position in high-demand areas where multiple offers are common. Sellers and agents are more likely to take you seriously if they know your financial situation has been thoroughly vetted. Additionally, a verified letter provides you with more confidence in your buying power, as a detailed review of your income, assets, and debts backs it.
How to apply for different types of pre-approval for mortgage
You can easily apply for either type of pre-approval for a mortgage through Better Mortgage’s streamlined online process. To apply for the basic pre-approval, you must provide your stated income and undergo a soft credit pull, which can be completed quickly.
For a verified pre-approval letter, you’ll need to submit documents such as pay stubs, tax returns, and bank statements. Once reviewed, you’ll receive your letter, typically within a few hours. Whether you choose the basic or verified option, the process is designed to be fast and efficient, giving you the confidence to begin your home search with clear financial guidance.