Solid offers come with a Verified Approval Letter

To help you stand out amongst other home buyers, consider getting a Verified Approval Letter (VAL) from a mortgage lender. This document can give you a competitive edge by showing home sellers you have the financial means to purchase their home.

While you do eventually have to go through a full underwriting process to get final approval for a mortgage, a VAL is more thorough compared to other types of approval letters from lenders

Let’s take a closer look at what a Verified Approval Letter is and how it can help you as a home buyer.

What is a Verified Approval Letter?

A Verified Approval Letter is a document from a mortgage lender like Rocket Mortgage® stating that you can qualify for a mortgage up to the specified approval amount. The underwriting team will qualify you if you can meet their qualifying requirements, which is done after verifying your income, assets, and credit. 

As a homebuyer, you can include this letter when making an offer on a home to show the seller you can confidently afford the home and have done the upfront work of verifying your financing.

What makes a Verified Approval Letter different?

Mortgage lenders that offer Verified Approval Letters go beyond what many others do when verifying your financial details. After confirming your assets, debt and income, the lender will calculate your debt-to-income ratio (DTI) and check your credit score.

Underwriters will then review your documents, taking it one step further compared to other types of mortgage approval letters.

Verified Approval Letter vs. preapproval

Both a mortgage preapproval and a Verified Approval typically involve a hard credit pull, which could affect your credit score. Lenders will also review your financial information such as your income, assets, and debt.

The main difference between the two is that with a VAL, an underwriter, or a mortgage professional tasked with analyzing financial details, will verify submitted documentation. This process won’t happen with a mortgage preapproval.

Verified Approval Letter vs. prequalification

A mortgage prequalification isn’t as rigorous of a process compared to a Verified Approval Letter. With a prequalification, the lender simply states that you’re mostly approved for a mortgage, but may not offer an accurate estimate as to what amount. All you need to do to get this type of letter is to provide your income, assets and debt. No documentation is needed.

You also won’t go through an initial underwriting process like you would with a Verified Approval Letter, nor will you have a more accurate understanding of how much you can afford.

How to get a Verified Approval Letter

To see if you qualify for a Verified Approval Letter from a lender, here’s what you need to do:

1. Reach out to the lender: Verify to see whether the lender you want to work with offers VALs, and how to apply for one. In many cases, you can do so online.
2. Provide necessary documentation: Typically, lenders will ask for proof of income such as a copy of your paystubs, W-2s, or tax returns. You’ll also be asked to provide statements from your bank or other financial institutions showing your assets and debts.
3. Give permission for a credit check: The lender may require you to sign a form giving them permission to conduct a hard credit check.
4. Wait for approval: Once you’ve submitted all required information, it may take up to several business days to find out whether you’ll receive a VAL.

What lenders review for Verified Approval Letters

Lenders will typically ask for the following documentation in order to review your application for a VAL:

• Pay stubs
• W-2s
• 1099s
• Tax returns
• Bank statements
• Brokerage statements
• Credit reports
• Loan statements (to verify your debt-to-income ratio)
• Profit and loss statements (if you’re self-employed)

The benefits of a Verified Approval Letter

It may seem like more work to get a Verified Approval Letter, but going the extra mile to get one may be well worth it. A VAL could help you stand out as a buyer, especially if you’re purchasing a home in a seller’s market.

A VAL gives home sellers confidence

Verified Approval Letters can help you increase your chances of getting your purchase offer accepted because they give a seller more confidence that you can afford to buy their home. 

Since a VAL means a mortgage underwriter has taken the time to verify your credit, income, and assets, a seller may feel better knowing that the amount you qualify for is accurate. That, and accepting your offer means that they’ll get closer to selling their home.

A VAL goes beyond a credit check

Remember, a Verified Approval Lender from a lender takes it further than what a preapproval or prequalification would. Your financial information isn’t simply taken at your word, Plus, lenders will also check your credit to assess whether you’re likely to pay back debts on time, unlike the prequalification process.

Compared to a preapproval or prequalification letter, a VAL communicates to sellers that a lender has almost guaranteed a loan. That is, assuming your financial profile remains the same throughout the closing process.

A VAL gives home buyers peace of mind

Buying a home can be a long and emotional process. Being prepared as ahead as possible can give you the mental space you need to focus on finding your dream home.

By getting a VAL, you can feel better knowing that you have your finances in order in order to purchase a home. That, and you’re able to remain competitive against other buyers who may want to bid on the same house.

FAQ

Still wondering whether a Verified Approval Letter is for you? Take a look at these frequently asked questions to help you learn more and make an informed decision that’s best for your needs.

How long does a verified approval letter last?

A Verified Approval Letter typically lasts up to 90 days from when you received it. For example, if the date on your VAL is March 30, 2025, the letter is valid until June 29, 2025.

If you don’t purchase a home before your VAL expires, you will need to go through the entire approval process all over again.

What is the difference between a conditional approval and verified approval?

A conditional approval from your mortgage lender means that your application has been reviewed and will be fully approved, providing you meet certain conditions during the underwriting process.

For example, the lender may need to submit additional bank statements showing your income, statements showing your assets, and proof you've purchased homeowners insurance for the new home.

With a verified approval, the lender has gone through a more thorough review and confirmed your income, assets, debt and credit. At this stage, the lender has fully approved your loan, getting you one step closer to closing on your new home.

Is underwriting the last step of the mortgage process?

No, underwriting isn’t the last step of the mortgage process. A verified approval, plus signing your mortgage closing documents and making any necessary payments to finalize the mortgage is the last step.

The bottom line: A VAL keeps you competitive in today’s market

You want your offer to be taken seriously when you’re ready to put an offer on a home. To give you a better advantage and help increase your chances of getting an offer accepted, a Verified Approval Letter could help you with just that.

Ready to start the home buying process? Take the first step in getting a Verified Approval Letter by starting your mortgage application with Rocket Mortgage.