superturnip wrote:Pre-approval letters - how valid are they? I received one from Lending Tree after faxing in the standard documentation (2 months pay stub, 2 year tax return, 2 months bank statements, invesments, etc.)I was told that we are pre-approved for well over what we are asking for. My concern is that I contacted Quicken - they pulled lower credit scores than myfico (Lending Tree's matched exactly) and the officer said that we did not qualify for the 80/20 loan that we need.We have found a few houses we like and I don't want to run into problems getting a loan locked in. My lending tree rep assures me that everything is pre-approved and we are good to go.Has anyone had issue with getting pre-approved and then running into issue locking in the loan they were approved for? Our financial, employment, and credit status will not have changed since we were pre-approved.
My understanding is a prequal is a cursory look at your finances/ credit based on info you provide, and a preapproval is a commitment to lend you said amount following a more scrutinized look at documentation by the underwriters. The prequal is not a commitment.
fused111 wrote:_____________________________________________________________________________OneMortgageGuy wrote:A pre-approval letter is good for a fire or wipe your butt______________________________________________________________________________I'm confused!