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Old 08-09-2010, 08:08 PM
 
169 posts, read 654,335 times
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I wonder which way it the right way to do. Am I supposed to get a loan approval, lock the rate, and start shopping for a house. Or should I find a house first and then apply for a loan? If I apply for a loan first and lock the rate, do I need to resubmit the application if I can't find a home with in the lock period? Will they need to run my credit check again? Is there any fee anytime I apply for the loan?
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Old 08-09-2010, 08:13 PM
 
Location: NJ
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Get a pre approval first. Then find a home. Then get a full loan and lock your rate.
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Old 08-09-2010, 09:18 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,816,501 times
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Manderly6 is correct, loan pre-approval first, then find home. This way you can move quickly when your find the right home, and know for sure the price range that will work for you. The lender will likely recheck your credit and employment more than once through closing to be sure nothing changed before you close.
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Old 08-09-2010, 09:20 PM
 
Location: Chciago
721 posts, read 2,845,983 times
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Quote:
Originally Posted by moonsky View Post
I wonder which way it the right way to do. Am I supposed to get a loan approval, lock the rate, and start shopping for a house. Or should I find a house first and then apply for a loan? If I apply for a loan first and lock the rate, do I need to resubmit the application if I can't find a home with in the lock period? Will they need to run my credit check again? Is there any fee anytime I apply for the loan?
You really can't get a loan without a house because part of getting a loan is the bank checking out the house, making sure its' worth waht your paying for it so if they have to take it back they can recoup some money.

Get a pre approval first. Many real estaet agents wont work with you unless you have one and most people wont accept an offer without a preapproval letter, especially if your looking at any short sales or foreclosures.

Get a preapproval, not a bad idea to get multiple preapprovals as some banks will approve you for more than others. Also, its not all that uncommon for thinsg to fall through last minute and then you already have another bank lined up who has preapproved you.
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Old 08-10-2010, 10:25 AM
 
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FYI, I'm hearing of banks not even giving pre-approvals before they see the house. Ask around in your area and see what flies.
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Old 08-10-2010, 11:01 AM
 
Location: Chciago
721 posts, read 2,845,983 times
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Originally Posted by cohdane View Post
FYI, I'm hearing of banks not even giving pre-approvals before they see the house. Ask around in your area and see what flies.
I've never heard of this, I bought in the past six months and got preapprovals from 4 different banks, no-one asked anything about the house except the general price range I was itnerested in.

In the past you might be looking for a 250k house and the bnak wind up giving you a preapproval from 500k, now it seems if you ask inqurie about a preapproval for a place nad tell them its 79,900 they will give you a preapproval for that exact amount down to the dollar.
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Old 08-10-2010, 11:03 AM
 
Location: NJ
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Originally Posted by cohdane View Post
FYI, I'm hearing of banks not even giving pre-approvals before they see the house. Ask around in your area and see what flies.
If there is a house for the bank to see, it isn't a pre-aapproval.
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Old 08-10-2010, 09:24 PM
 
Location: Blue Bell, PA
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Here's a thought...you can get fully approved...that's right. The bank will approve ALL of your criteria. Then if you find the house, the only thing left is the appraisal. Imagine how great your negotiating power will be when you can show a seller that you already have a loan in place, and now the burden is on the seller to hope that the house will be worth what he is asking and what you are paying.

Your only other route is to get the pre-approval, but make sure you go to a reputable lender; and ask them to be as specific as possible.
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Old 08-12-2010, 04:11 PM
 
139 posts, read 786,715 times
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Dont get pre-approved unless you know you are going to buy within 30 days. This is for numerous reasons... (1) A pre-approval will be a pull on your credit (2) a LOT of properties require pre-approvals from certain banks. If you get a pre-approval from Chase and an REO property says you need one from BofA, then you have to go to BofA...

If you're REALLY serious about getting a house in a month, then it isnt bad to get pre-approval. In the mean time, get pre-qualified and be OK with that until you find a house that (a) requires a pre-approval or (b) are positive you're going to put a strong offer in on.
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Old 08-12-2010, 05:50 PM
 
Location: NJ
17,579 posts, read 43,342,509 times
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Quote:
Originally Posted by sigep739 View Post
Dont get pre-approved unless you know you are going to buy within 30 days. This is for numerous reasons... (1) A pre-approval will be a pull on your credit (2) a LOT of properties require pre-approvals from certain banks. If you get a pre-approval from Chase and an REO property says you need one from BofA, then you have to go to BofA...

If you're REALLY serious about getting a house in a month, then it isnt bad to get pre-approval. In the mean time, get pre-qualified and be OK with that until you find a house that (a) requires a pre-approval or (b) are positive you're going to put a strong offer in on.
Honestly this just doesn't sound like good advice. Most agents don't even want to show you houses unless you have a pre-approval. And who can blame them. No one wants to waste their time.

Who knows how long it will take to find the house? 30 days can go by pretty fast. And the hit to your credit is minimal. Hell, you may as well go out and get pre-approved from several banks. As long as it is done in a short time frame it goes down as one hit to your credit.
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