Pre-Qualification and Pre-Approval

Sam

Pre-qualified:
Getting pre-qualified implies that you may be offered a mortgage loan. However the lender gives the confirmation only after necessary verification of the loan application. Based on your financial status, debts and credit, he makes an estimate of how much can be borrowed and what monthly payment you can afford. This however does not imply that you will be offered the loan, as there is no written agreement between you and the lender.

Pre-Approved:
Pre-approval requires that you submit a loan application to the corresponding mortgage company or lender. Depending on the mortgage company, you go through various formalities so that your loan is finally approved. The lender reviews the loan application and analyzes the risk with the help of an underwriter. Finally he issues a written commitment stating the loan amount and monthly payments. There are companies who may allow you to lock in the interest rate even when you haven't selected the house that is to be purchased. Thus you are said to be pre-approved for the loan.

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Guest 0.10 Dollars($)

we are trying to purchse this home we live in from a famly member that has cancer and is unable to continue working

jameshogg · Posted: Mon Feb 18, 2008 11:02 pm Post subject:

So, Jim what is your query? would you lik to discuss any of the loan options with us? Please come up with some more details.

gmakerley · Posted: Tue Feb 19, 2008 11:44 am Post subject:

i agree james...jim & karen, we would need to know how you propose to do your purchase transaction before we could discuss your options.

in family sale situations, there are lots of favorable possibilities available to you, but we need to know more before commenting.

brad · Posted: Tue Feb 19, 2008 2:50 pm Post subject:

Is there a gift of equity coming from this family member?

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.56 Dollars($)

Hi Jim & Karen Julian

Sorry to hear about the unfortunate circumstances that lead to this purchase. However, it does put you into an advantageous position by living in the home and purchasing from a family member. You most likely can use the equity in the property like a down payment. There is no cash transfer of any sort and just allows you to get into the home with no money down (depending on the value vs. the purchase amount). Another way to do this is to be added to title and then refinance it in your name. Either way, it looks like you have a couple different options that will allow you to purchase the home with no money down.

jeffselan · Posted: Sat Feb 23, 2008 9:02 am Post subject: Jim

My best to your family member. Someone here should be able to answer your questions when you supply more information.

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