Getting a pre-approval does not take a ton of time to obtain, in fact, a top lender should be able to pre-approve a buyer within a few days of receiving a pre-approval application. Buyers who expect real estate agents to show them homes without being approved is one of the most annoying things buyers do that real estate agents hate .
· When you are pre-approved, the lenders actually look at your credit report and financial situation and allocate a certain amount of funds. You are granted a commitment letter from the bank stating exactly how much they are willing to loan you. While pre-qualifying is good, if a seller had 2 offers in front of them, most will choose the one that.
So if you get an "approval letter" when making an offer, the bank or lender is likely using the wrong semantics, and the letter should be written as a "pre-approval" letter. A pre-approval letter means someone (the loan officer, mortgage broker or the underwriter) has reviewed the finances of the buyer and that things look OK.