Don’t Forget Your Preapproval LetterWhen you’re ready to purchase a home, your real estate agent will probably tell you to get a preapproval letter from a lender. While a preapproval letter isn’t an absolute guarantee that you’ll be approved for a loan, they’re a good indication that you will be—and they’re considered more reliable than a prequalification letter.

How to Get a Preapproval Letter from a Lender

Any time you want a lender to extend you credit, you’ll have to make sure your credit scores are up to par and that you have enough money saved to buy a house.

First, you’ll complete the lender’s questionnaire or sit through a telephone interview (during which the interviewer will complete the lender’s questionnaire for you).

The lender will give you an estimated preapproval amount. If you’d like an official preapproval letter, the lender will need to pull your credit report.

As long as you meet the lender’s guidelines, they will give you a preapproval letter.

What to Do with Your Preapproval Letter

Once you receive a preapproval letter f