pre-approval process

[Anonymous]

 First time home buyer here!! I am lookin to get pre-approved for a motgage. When I go do I  need to go to several different banks to shop around for the pre-approval or do I go to just one to be pre-approved. Then when I find a home shop around for a rate then?? Just wondering all this is so new and confusing to me..

[Anonymous]

You have 14 period where you can shop around to different banks for different rates and only ding your credit score once. After 14 days of the initial ding you will be hit again. So get all your paper work together (W2s, paystubs) plan to run around for 2 weeks getting best deal you can.

[Anonymous]

Ditto..

Have all your paperwork ready. The other thing that helps with is it makes the whole loan underwriting process go faster once you chose a loan and a house. My Mortgage Broker was very happy I had everything together and ready to go especially since i Live in VA and am buying in NC.

[Anonymous]

So a pre-qualifying letter differs from pre-approval? I am moving from chicago to nashville and the raltor told me to be preapproved before I came down to look at homes. I tought you only had to be pre-qualified to look at home and the pre-approval process comes after I actually found a home, and then I shop around for a rate.. Like I said this is all a new process and would appriciate any help I can get..

[Anonymous]

All pre qualifiying does really is tell you what they think you can afford. And they tend to think you can afford far more than is probably a good idea. (about 80 grand more than we were willing to spend in our case)

You really need a pre-Approval to know if you'll be accepted for the amount you want. We looked at houses with neither and then went and did both on the same day.

[Anonymous]

So I can get pre-approved before I actually find a home? The reason I ask I am trying to avoid as many pulls of my report as I can.. I heard once you are preapproved the letter is good for 90 days. Is this true? If so will the rate and amount that they pre-approve me be the same as the rate and amount of the loan? If I understand correct I should get pre-approved say May 1st before we go on May 16th and if the letter is good for 90 days I should be able to avoid my reports being pulled a second time if we close Aug 1st?

[Anonymous]

I believe it is good for 90 days, but let the mortgage guys answer you on that.


And we didn't lock in our rate until a few days later, but we had a house already picked out.

[Anonymous]

Yes, you can get a pre-approval before deciding on a property. Talk with a mtg broker, the approval process can take up to 30 days as the lenders are short-staffed and standards are getting more strict. The pre-approval rate will not be locked in, that won't happen until you've found your property and everything is approved. The pre-approval may be valid for only 30days, maybe 180days, depends upon the lender.

GL

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plechma wrote:

So I can get pre-approved before I actually find a home? The reason I ask I am trying to avoid as many pulls of my report as I can.. I heard once you are preapproved the letter is good for 90 days. Is this true? If so will the rate and amount that they pre-approve me be the same as the rate and amount of the loan? If I understand correct I should get pre-approved say May 1st before we go on May 16th and if the letter is good for 90 days I should be able to avoid my reports being pulled a second time if we close Aug 1st?

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[Anonymous]

What about FHA? Same process?

[Anonymous]

Then I should definitly shop around for pre-approval?