Definition
A Verified Approval Letter is a mortgage preapproval from a lender who has thoroughly verified your credit and financial information. It gives sellers confidence that your offer is strong.
Understanding the VAL Process
A Verified Approval Letter (VAL) typically surfaces early in the home buying journey, right after a lender assesses your financial documents. It simplifies the process by confirming your financial readiness to sellers. Think of it as a financial health check. Example: If you're looking at a $300,000 home, a VAL might show that you're verified for that amount, reassuring sellers of your serious intent. It's not a loan commitment or a guarantee of funds, but it strengthens your offer in a competitive market. Many confuse it with a pre-approval, but a VAL involves a more thorough review of your financial details.
