How does pre-approval works.

Guest 0.10 Dollars($)

Hello dear members, sorry for doing a hit and run like that Wink

. I am doing a school project on mortgages for my finance and would appreciate insight from mortgage professionals! (never bought a home)

I was wondering. Lets say i go shopping for a house and want to know how much i can afford. I apply for pre-approval online with a brokerage firm / lender.

What happens when they approve me(assuming they do)? Do they mail me a letter of approval that I can then show around to sellers? How does the process work?

Would appreciate your insight.

chrisburns · Posted: Wed Apr 16, 2008 8:50 am Post subject:

Yes sir you got it.

If your pre-qualified they will send you a letter stating such that you can include with offers you make. This helps your offer seem more solid to the seller since you already have your financing lined up.

gmakerley · Posted: Wed Apr 16, 2008 8:55 am Post subject:

methinks you wanted more information about the process...here goes.

we will pull your credit report, collect from you the relevant documentation (paystubs, w2s, tax returns, bank statements, retirement statements, verification of any other claims you've made that might be relevant - such as something was recently paid in full) and analyze all that information. at the same time, we would try to gauge what kind of budget you feel you are working with (as far as how much you're willing to spend, etc.). based on the income calculations, your existing debt load and the anticipated monthly payments on the mortgage you're seeking, we would be able to provide you with a specific dollar figure at which you'd be qualified.

as chris noted, we would then provide you with a pre-approval letter that you'd be able to provide to realtors, sellers, etc. in order to verify for them that you're able to buy the particular home you're shopping.

please let us know if you have other questions in this vein, ivan.

Guest 0.10 Dollars($)

Thanks Chris and George ! Exactly what i needed!

Good luck to you!

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