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I very recently began searching for a home to purchase. I say "very recent" because I have neither an agent nor have I applied for a loan. If I decide to be pre-approved for a loan, and I pay the necessary application fees, etc. what happens if within the term limit I don't find a house or my offer is declined? Will the lender extend the term or must I pay another application fee and the term re-clocks?
what application fee? you can get pre-approved and don't have to pay a thing. Now, when you are ready to make formal application (after you find a house) there are some fees, like appraisal fee that you will need to pay up front. Most everything else will come out at closing.
Now, for expiration. If you get pre-approved today, and don't talk to your lender and call them 6 months from now, they may want to update their information... I would. and make sure nothing has changed. but as long as you are staying in contact and your file is staying active... you should be fine.
Finally, how are you going to find your real estate agent and/or your mortgage lender? Because it is time.
shelly
p.s. Welcome!! and congrats on your fist post. you did just fine : )
Thanks Shelly.From what I read on other websites the application for a pre-approved loans run anywhere from $300 to $350 for a pre-approved loan.The reason for my posting was that I wanted to get a good idea as to what I could expect if I obtained a pre-approved loan in parallel of retaining the services of a real estate agent. In particular if I don’t find a home within the term period of the loan would I be exposed to another application fee? It sounds like from your post if I find a home within a short period (2 or 3 months) from the end of the term period and nothing financially has changed adversely in my situation then I have a good chance that the lending institution may waive the fee. Does that read about right?My approach to finding an agent or broker is: (1) Lock in a general area where I want to live; (2) Seek referrals from friends, relatives, and close work associates; (3) Try to obtain an agent that serves and is located in the general area of where I want to live; and (4) Meet the agent and ask questions about their qualifications and experiences. Some of you may disagree with (3), but I feel that if an agent is somewhat familiar with the area that I want to live he/she will be more equipped with seeking the type of home that best matches my criteria. Any other recommendations?
I very recently began searching for a home to purchase. I say "very recent" because I have neither an agent nor have I applied for a loan. If I decide to be pre-approved for a loan, and I pay the necessary application fees, etc. what happens if within the term limit I don't find a house or my offer is declined? Will the lender extend the term or must I pay another application fee and the term re-clocks?
Thank you
There's no charge for a pre-approval, as someone already told you. I got a pre-approval in July. It is good until November, but I won't be ready to buy something before that--I've just started looking at different condo complexes. However, the guy told me not to worry about the expiration date. Unless something drastically changed with my credit, job or anything else that would change my financial situation, the pre-approval should be good and/or renewable. Good luck to us both!
Differences in termionology, here, pre-approval versus pre-qualified.
Pre-approval means income and assets have been verified. The lender is able to make a soft commitment, subject to appraisal, underwriting and things within the borrow's control.
This requires the borrower to pay an application fee. The pre-approval has an expiration date at which time, the lender will minimally reverify the borrow's credit score.
Pre-approval, as defined, reduces the risk of the buyer's mortgage contingency to the seller. Reducing the seller's risk may give the buyer more negotiating power.
Any reluctance to get pre-approved, as defined, is a red flag for me. I do not work with buyers who need financing, unless they are pre-approved, as defined.
Last edited by middle-aged mom; 10-16-2009 at 10:07 AM..
we originally got pre-appoved in January 2009 . it was a 4 month term. we had to have it extended twice before we finally were able to get to the point of actual loan application. each time the only charge was for the bank to pull credit reports, $14 per person.
"This requires the borrower to pay an application fee. The pre-approval has an expiration date at which time, the lender will minimally reverify the borrow's credit score.
Pre-approval, as defined, reduces the risk of the buyer's mortgage contingency to the seller. Reducing the seller's risk may give the buyer more negotiating power."
This was my understanding of pre-approved thus the question of application fee and extending the term period after expiring. Thanks for verifying.
we originally got pre-appoved in January 2009 . it was a 4 month term. we had to have it extended twice before we finally were able to get to the point of actual loan application. each time the only charge was for the bank to pull credit reports, $14 per person.
Good to know. Thanks
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