Questions about pre approval process (interest rate, credit report, fees, rate)

[idreos]

I am thinking about getting a mortgage pre approval and have several questions

Is there a pre approval application fee?

When the time comes to make an offer on a house do you have to use the lender who gave the pre approval
letter?

Do pre approval letters have an expiration date. Would one dated six months earlier than needed be valid??

Thanks for your help!

[LCTMadison]

You typically do not have a fee to get a preapproval from a lender, at least I have never heard of a lender charging for that and to be honest I would not recommend a lender charging buyers for preapprovals.

As far as your offer...no, you do not. I always advise buyers to speak with 2-3 different lenders when we get a contract to determine who will give them the best rates/fees as you cannot lock a rate until you have a contract. That may not be the lender whose preapproval letter you use.

Preapprovals are typically good for a specified period of time which should be indicated on the letter. Most in our area date them for about 90 days. If a long time has spanned it may be prudent to touch base with the lender prior to submitting an offer just to make sure everything is still ok.

[LifeIsGood01]

Originally Posted by idreos

I am thinking about getting a mortgage pre approval and have several questions

Is there a pre approval application fee?

When the time comes to make an offer on a house do you have to use the lender who gave the pre approval
letter?

Do pre approval letters have an expiration date. Would one dated six months earlier than needed be valid??

Thanks for your help!

No there is no fee.

No you do not have to use that lender

They don't have an expiration date per se. If the preapproval includes an interest rate that is only good for about 2 months. It depends on what you want to use the preapproval for, if a RE agent asks for one to show you a home they can determine if your letter is old and you need a new one.

Six months later when you find a home a new lender may need to preapprove you or the same lender may need to because credit reports and income can change.