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Posted by David Smith on January 30, 2008, 10:07 am
In article
>
> > Also, how soon ahead of the home purchase is it advisable to get
> > pre-qualified? Finally - What exactly does pre-qualification mean ---
> > Is it merely a loan amount that's pre-approved or is it locking into
> > other terms (ie - rate, payoff period, etc.)?
>
> A pre-qualification is a suggested maximum that you could potentially
> borrow. Since there is no loan being considered at that time, you
> do not actually go to underwriting, and there is no way to know for
> sure if you actually will qualify for that loan or any loan. All it
> shows is that someone pulled your credit, asked your income, and
> suggested a price range to look at. It really only serves to weed
> out those with really bad credit and keeps people from looking at
> houses that are far out of their price range.
>
> If you go this route, the best time is far enough in advance so that
> if a problem is found, you have time to fix that problem. A bank
> or a local lender is a good place to go. There is nothing binding,
> so you can pre-qualify at one place, then apply for a loan somewhere
> else.
>
> -john-
BRH
It is important to keep your terms consistent. John does an excellent
job with pre-qualification. Pre-approval is more involved and means you
are pre-approved for a specified amount, and will be approved for your
mortgage, assuming the house meets the requirements. The rates and fees
of the mortgage will be those at the time the mortgage is applied for or
approved, depending if you lock your rate at time of application.
--
I do the best I can, but I could be wrong.
Please post reply to news group.
David Smith
======================================= MODERATOR'S COMMENT:
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