Pre-Approval Letter vs. Underwritten Pre-Approval

While both terms refer to a letter from a lender that says the lender is generally willing to lend you up to a certain amount based on certain assumptions, there is a distinct and significant difference.

If you can, get a fully underwritten pre-approval letter from your lender. This is several steps beyond a standard pre-approval letter, and provides more assurance to a potential seller that your mortgage will be approved.

Pre-qualification is often seen as the first step in the mortgage process, and pre-approval is the next step. With pre-qualification, you’ll supply an overview of your financial history to the lender, including income, assets, debts, and credit score. The lender will review this information to give you an estimate of what you would qualify for. Mortgage pre-qualification doesn’t always require documentation of your financial history; it can often be self-reported.

Underwritten mortgage pre-approval is similar, however, it usually requires documentation and verification of your income, assets, debts, and it will often require a credit check. Underwritten pre-approval not only allows the lender to put a mortgage application through a more thorough initial validating process, but removes most of the potential obstacles before approval is granted.

Another advantage of having an underwritten pre-approval in today’s market is it allows home buyers to compete better with other cash buyers, who otherwise always tend to get the best deals and are able to close faster especially when many potential buyers are interested in the same property.

Underwritten pre-approval holds more weight, is more attractive to sellers in a competitive market, such as our current real estate market, and is more likely to get your buyers selected in a multiple offer scenario.  Home sellers get peace of mind knowing that the mortgage loan approval requirements and documents have already been reviewed and signed off on by an underwriter. It strengthens offers by showing buyers’ commitment to buying.

This is why we at Satori Mortgage recommend using the Underwritten  Pre-Approval Letter when it makes sense for your situation. To apply  and find out what type of Pre-Approval is right for you go to