Mortgage Loans

[adonis2011]

We received our pre approval with no conditions. Well there are no conditions listed on the pre approval letter.Is it okay to be excited? What is next?

[r1lukasz]

Conditions are usually when underwriter send you loan approval (not preapproval) you don't have keys yet hold your emotions for now

[StartingOver10]

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r1lukasz wrote:

Conditions are usually when underwriter send you loan approval (not preapproval) you don't have keys yet hold your emotions for now

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^^^^Exactly right. The pre-approval is very, very preliminary. The conditions come after you are under contract, been through processing and underwriting and just before closing. If you submitted all of your documentation (tax returns, pay stubs, W-2's, etc) than you can get a little excited because you would have a strong pre-approval. Good luck in your search for your new home. Remember - have fun!

[adonis2011]

Thank you! Yes we submitted all of our info weeks ago.
I'm assuming we sign our contract and the appraisal is ordered next.

[adonis2011]

I will say we were under contract on a new construction home. The home is finished being built but we were removed from the contract because we hadn't obtained pre approval. We were totally ignorant of the process.
We are learning now- asking tons of questions. So we applied and submitted docs for pre approval-which we received today. The amount on the pre approval is the amount that was on the original contract (that our names were removed from). Kind of confusing to us, but the home is still available and we plan to sign a new contract for it and go from there. It's such a long process, we had no idea what all was involved in the home buying process. We're learning now.

[DallasLoanGuy]

your pre-approval is as strong as your loan officer.

did they see bank statements?

paystubs?

retirement accounts?

pre-approval is a basic approval based on loan application and a few income/asset docs.

anything can happen when EVERYTHING is scrutinized.

example: you are salaried/w-2 employee and bank statements look cool.... BUT!!!!   we pull tax returns and you have a side business and write off $20K/yr in expenses.... hmmmm.... LOOK OUT!!!.... Stuff just got crazy

[adonis2011]

Oh yeah we're ready for them to pull out the magnified glass. Lol
But they reviewed bank stmts, paystubs, tax docs, I was even asked to write a letter of explaination. So we submitted everything about 2 weeks ago. We just don't have anything that's unexplained. I wrote a detailed letter of any questions that may come up- as we were asked to do.
But I totally hear you, this is just the 1st step! Thanks for your response! I'll keep everyone updated. This is also a VA loan

[JohnL1900]

Your process sounds a lot like ours that we are going through right now. 

Though it's a pre-approval, it's technically an approval from what the loan officer told us. It's for a new build, so they basically have to fully approve you now (meaning taxes, paystubs, bank statements, etc) and you are considered "approved" per the loan officer. Then they give the go ahead to build the house, and when it's time to close in 6-7 months, they just need updated docs as some of them (all of them?) expire. But as long as nothing changes between the approval now and the close, it should be good to go.

We submitted all of our docs a little over 2 weeks ago, hoping to know something by this time next week.

[adonis2011]

Yeah we just did everything backwards. We started and completed the build before the preapproval. I wish we knew the right steps before- I would have saved us lots of headache!

[JohnL1900]

Wow they built before you were approved? Our builder isn't starting any construction until we have full approval. 

What would of happened if you didn't get approved? Was the earnest deposit (assuming you put down a deposit) still refundable since they already built the house?