Making an offer with your letter
The letter does its real work in about an hour, on the day your agent submits. Here is how to use it properly.
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On offer day
Offer day
Four things to fix first
Making an offer with a pre-approval letter is where the letter earns its keep. Most buyers treat it as a formality to attach. It is closer to a reference, and the listing agent will follow it up.
Getting a few small things right before you submit is worth more than raising your price.
Four things to fix before you submit
Each takes minutes and costs nothing
Sellers weigh certainty of closing alongside price, especially after a deal has fallen through.
Before you submit
Four things to get right
Reissue at your offer price
If your letter says $485,000 and you are offering $430,000, the seller sees your remaining room. A reissue takes about 90 seconds and costs nothing.
Check the date
A letter issued this week reads better than one from two months ago. It suggests an active, serious buyer.
Make sure someone answers
Agents call the number on the letter. If nobody picks up, the letter is worth considerably less.
Match the program to the property
On a house needing repair, FHA and VA appraisals apply condition standards. Sellers sometimes prefer conventional for that reason.
In competition
How sellers actually compare offers
Price is not the only line
Sellers weigh financing strength next to price. At the same number, verified beats unverified.
A verified letter survives the call
The agent asks whether income and assets were checked or only stated. That answer moves offers up and down the pile.
Earnest money signals commitment
Your deposit says you are serious. The letter says you are able. Sellers read them together.
A shorter contingency window helps
A stronger letter can support a tighter financing contingency, which sellers notice.
Flexible timing is worth real money
Matching the seller's preferred closing date sometimes beats a higher offer.
Do not waive protections casually
An appraisal or financing contingency is what lets you keep your deposit if things go wrong.
After acceptance
What happens immediately
Earnest money to escrow
Held by a neutral third party and credited toward your costs at closing.
Full application
This is where the hard credit inquiry happens and documents are collected.
Inspection and appraisal
You inspect. The lender values the property separately.
Underwriting
Two to three weeks, usually ending in conditional approval.
Questions
Common questions
Do I need a pre-approval letter to make an offer?
In practice, yes. Most sellers and listing agents expect one, and many agents will not present an offer without it.
Should my letter show my maximum amount?
Usually not. Ask for it to be reissued at your offer price so the seller cannot see how much more you could have paid.
Will the listing agent contact my lender?
Often, particularly on a competitive listing. They confirm the letter is genuine and ask how solid the file is.
What is earnest money?
A deposit paid when your offer is accepted, held in escrow and credited toward your costs at closing. Contingencies protect it if the deal falls through.
Can a stronger letter beat a higher offer?
Sometimes. Sellers weigh certainty of closing alongside price, particularly if they have been let down before.
Keep reading
Related guides
The letter explained
Every line, and what agents check.
Mortgage pre-approval
The full guide to the letter and how to use it.
Buying a home
The full journey from letter to keys.
Independent sources
- Consumer Financial Protection Bureau — making an offer and what happens next
See your real number
Verified income and assets, in about 90 seconds.
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