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I'm selling my current home and buying a new home. My offer on the new home was not contingent on the sale of my current home.
I may be able to sell my current home before I close on the new home, in which case the proceeds from the sale will be enough to fund the purchase. However, I plan to apply for a mortgage loan in case my current home does not sell in time for closing on the new home.
This raises the possibility that I may apply for a mortgage loan and then find that I don't need it. My assumption is that at the point where I actually sign the loan application, if the loan is approved, then I am committed to paying at least the loan origination fee since the lender expended the resources to process the loan. Is that correct?
I would ask them that directly, though. I asked a million and one questions when I did an assumption loan before proceeding. And the same bank will have to answer a million and one more before I do what you are doing or get a HELOC!
(And maybe a HELOC would work for your purposes? Something to consider)
You won't be charged any lender fees unless you close. However, you may be charged for title work and the appraisal and any home inspections which all occur during the loan process, before closing. You may want to consider carrying a small mortgage and keeping some of your real estate sales proceeds in your investment account.
People get pre-approved all the time. I would get pre-approved for the highest amount you might need and then use a portion or none of it depending on how things shake out. This is very very common in home buying.
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