Loan preapproval letters still matter

Letters touting a buyer’s preapproved status for a mortgage can present a dilemma to sellers who don’t know how much stock to put in a lender’s claims when nearly one-third of mortgage applications for home purchases fall through. “Preapproval letters are only as good as the trustworthiness of the loan officer who issued them,” said Realtor and lender Sweth Chandramouli of Ethical Homes, a mortgage and real estate company.