Your pre-approval letter, line by line
Six lines, and a listing agent may ask about any of them. Here is what each one means and which ones matter most.
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On the letter
The letter
Six lines, any can be questioned
A pre-approval letter is short, and every line on it is something a listing agent may ask about.
The most important is the verification line. It separates a letter backed by checked data from one backed by a conversation.
What a listing agent checks
Six lines, and any of them can be questioned
Ask for the letter to be reissued at your offer price, not your ceiling.
Line by line
What each part means
Maximum loan amount
Your ceiling, not your target. If the letter says $485,000 and you offer $430,000, the seller can see your remaining room. Ask for a reissue at your offer price.
Loan program
Conventional, FHA, VA, USDA or jumbo. Each carries different mortgage insurance, PMI on conventional and MIP on FHA. On a property needing repair, sellers sometimes prefer conventional because FHA and VA appraisals apply condition standards.
Verification status
Verified means income and assets were checked against real data. This is what holds up when the agent calls.
Expiry date
Usually 60 to 90 days out. A letter dated this week reads better than one from two months ago.
Outstanding conditions
Anything still to satisfy before underwriting can move toward clear to close. A short and shrinking list is a good sign. A long one gives an agent pause.
Issuing lender and contact
Agents do call. A letter nobody answers for is worth considerably less.
Offer day
What the listing agent is checking
Is it real
The first call confirms the letter came from who it says it did.
How solid is the buyer
They ask whether income and assets were verified, or only stated.
Does the amount cover the offer
A letter below the offer price is an immediate problem.
Is it current
An expired or nearly expired letter suggests a search that has been dragging.
Which program
Relevant on properties that might struggle a stricter appraisal.
Who to call later
If the deal proceeds, this is their contact for updates.
One tactic
Reissue at your offer price
This is the single most useful thing on this page. Your maximum is a ceiling, and showing it weakens your negotiating position.
Ask before you submit
A reissue takes about 90 seconds and costs nothing.
Match the offer, not the ceiling
A letter at exactly your offer price tells the seller you can close, and nothing more.
Reissue again if you raise
In a bidding war, a fresh letter at the new number is quicker than explaining the old one.
Questions
Common questions
What is on a mortgage pre-approval letter?
Your maximum loan amount, the loan program, the verification status, an expiry date, any outstanding conditions, and the issuing lender's contact details.
Should I show a seller my maximum amount?
Usually not. Ask for the letter to be reissued at your offer price so the seller cannot see how much more you could have paid.
Do listing agents really call the lender?
Often, particularly on a competitive listing. They confirm the letter is genuine and ask how solid the file is.
What are outstanding conditions?
Items still to be satisfied before the loan can proceed. A short and shrinking list is a healthy sign.
Can I use my letter with a different lender?
Yes. The letter is yours to present with an offer, and you can continue with whichever lender you choose.
Keep reading
Related guides
Mortgage pre-approval
The full guide to the letter and how to use it.
Making an offer
How to present financing strength.
How long it lasts
Expiry and reissuing explained.
Independent sources
- Consumer Financial Protection Bureau — what lenders provide in writing
See your real number
Verified income and assets, in about 90 seconds.
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