What is a pre-qualification letter? A mortgage lender will give you this official document once you decide you might want to borrow money from the lender. But how much will that letter actually boost your chances of successfully making an offer on a house? Experts say it offers very little help.

“I tell most people they can take that pre-qualification letter and throw it in the trash,” says Patty Arvielo, a mortgage banker and president and founder of New American Funding, in Tustin, CA. “It doesn’t mean all that much.”

Of course, this letter does serve some purpose for home buyers, otherwise it wouldn’t exist, right? So is it worth pursuing pre-qualification before bidding on a house? Read on.

What to know about a pre-qualification letter

Of the two kinds of letters buyers typically obtain before they………..

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