Mortgage Types

If a Real Estate Buyer plans on financing a majority of the purchase of a property, it is highly recommened that they receive a pre-approval letter from their lender.

• 30 Year Fixed
• 15 Year Fixed
• 5/1 ARM
• 7/1 ARM
• 10/1 ARM
• Hard Money

30 Year Fixed

A mortgage broker or loan officer may give a client either a pre-qualified letter or a pre-approval letter. To the average person, these may seem like the same thing but in the nuances of a Real Estate Transaction, they are different.

A pre-qualified letter is a document produced by the loan officer after they have had an initial conversation with a client. 

A pre-approved letter is a document produced by the loan officer after they have received documentation for the client and reviewed their document financial status. A approval letter has less risk from a Real Estate Sellers point of view since the loan officer has reviewed the documentation that will be used to get the loan approved and funded.