My lender told me that I have pre-aproved for $170; and wants me to start looking for a house, does this mean I will get the loan or might be turned down on closing day? Due to my score 522, I will be getting an interest of 7.8%. BUt I am scared they might turn me down on the last day. What should I do?
I think your lender is referring to the amount you are approved for as far as debt ratios, income etc. You do not get the actual approval until you find a house and they run the loan.
They DON'T turn down loans on the "LAST DAY"...unless they find out you applied for 50 credit cards in the past 2 weeks, or they found $100,000 IRS "HOLD" or something REALLY BIG...
Nope I havent applied for any cc or any loans. Never cheated IRS either!! I am just scared due to my low scores.
If they've run your credit, the pre-approval should be just as good as an approval. A prequal is when they take your income and see what you can afford.
When you go to fill out loan papers and put EARNEST MONEY DOWN (like $1,000.00) on the house...it is APPROVED at that time...or with-in the week...
The whole mortgage thing is a lot less complicated than I thought. I stressed out about it a lot more than I should have.
When we filled out the loan papers at the loan office...they gave us a "GOOD FAITH ESTIMATE"...AND WE WERE GIVEN AN APPROVAL BEFORE WE LEFT THAT NIGHT!!!
where in the world did you get a rate like that for those scores????? i would qualify at that rate peace, jimrie
My loan processor said one of three things could get me rejected after my pre-approval: 1) I lose my job; 2) I stop paying my bills; or 3) I don't have the required funds to close. Which is not to say that you'll be problem-free on closing day, but at least from a loan approval standpoint, you should be good to go. wajaba
I talked to my mortgage company to fax me the pre-approval letter for my records (incase they do turn me down) but it seems like they dont want to. I gave them 3 fax numbers to fax it to but they tell me that the fax machines are busy, I am standing right by them and they arent in use... To hell with them.
