If you are interested in buying a home, chances are you need a mortgage — and the first step toward a mortgage is a prequalification (or its cousin, pre-approval) letter. You provide your lender with basic financial information, and in return you receive a written offer to provide you with financial backing for a home purchase.
However, buyers — and especially first-time buyers — should know that having a letter in their pocket isn’t everything. In fact, according to statistics kept by the National Association of Realtors, some 16% of realtors recently reported that deals that they had signed contracts on didn’t close.
