What Your Pre-Approval Letter Really Says

Getting your first pre-approval letter feels like getting your driver's license. You want to show it to everyone. I get it! Let's talk about what it actually says.

What it is

A pre-approval letter means a lender has reviewed your income, assets, credit, and debts and believes you can likely qualify for a loan up to a certain amount, based on that information.

What it is not

It is not a final loan approval. The lender still needs the appraisal, an updated review of your finances, and the property details before closing.

Why sellers care

In Arizona, most offers include a pre-approval or pre-qualification letter. It tells the seller you have done your homework and are a serious buyer.

Protect it until closing

• Do not open new credit cards or finance furniture.
• Do not change jobs without talking to your lender.
• Do not move big chunks of money around without a paper trail.

I like to say: be boring with your money until you have keys. Boring is beautiful in escrow.

The number on the letter

That is the ceiling, not the goal. Pick the payment that lets you still enjoy dinner out and a weekend in Sedona.

Did anything about pre-approval surprise you? Tell me in the comments. I read every one.

Thinking about buying or selling in the Valley? Call or text me at 480-572-2159, or visit lovingazhomes.com. First-time buyer? Watch my free webinar at lovingazhomes.com/first-time-buyers.

Tina Marie Miller, REALTOR®, DeLex Realty. Information is general and not legal, tax, or lending advice. Programs and amenities can change; please verify details.

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Free First-Time Homebuyer Webinar

Thinking about buying your first home in the Phoenix metro or Pinal County? I put together a free, calm, 15-minute webinar that walks you through the whole process in plain English: budgets, pre-approval, builder incentives, offers, inspections and closing. No pressure, no sales pitch.