A document issued by a broker or lender estimating the amount that a prospective homebuyer may potentially qualify to borrow. While this letter is not a binding agreement, it can help buyers shop for homes and negotiate with sellers. The amount in the letter is based on the buyer’s credit history and current interest rates.
What’s Better Installment vs Revolving Credit?
Many people need help to optimize their credit usage. They need to understand the differences between installment and revolving credit.