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Old 03-10-2008, 10:45 PM
 
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I was pre-approved for a loan by BECU. My question is...does an underwriter actually look at the application when a pre-approval is handed out? I have put in an offer on a house and my good faith estimate keeps changing around and it is making me nervous. I am a first-time homebuyer and I dont know the process and learning alot as I go. But my concern is, they are doing appraisal and then I know it goes to the underwriter for approval. Is there still a chance they could kill the loan? and why?
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Old 03-10-2008, 11:04 PM
 
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The underwriter does look at the application...It's very unlikely they will kill the loan if you are pre-approved, but if the appraisal comes out lower than the selling price, then BECU will only loan you a certain percentage of either the selling price, or the appraised value, whichever is lower. So let's say you're preapproved for 500,000 dollars and find a house and offer 500,000, which is accepted, but the appraisal comes in at only 460. With the financing contingency of your offer, you can change the offer to reflect that, or , if you're supposed to put 20% down , you'll need to come with another 32 thousand down or so since they will only loan 80% to value, not the selling price.
If that happens, you can also walk away from the deal and get your earnest money back, provided your offer contains a financing contingency form or any others that would relate to that.
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