Preapproval ??'s

I've done all the calculators to get a feel for how much house we can afford, but I'd also like to see how much of a loan they'll offer us.

How's this work? Am I committed to getting a mortgage from the lender I get pre-approval from?

Do you recommend pre-approval? Do lenders charge for it? Is it simply based on credit rating or do they look up your income history? How far back do they go?

Our credit is excellent, but we're both starting new jobs, so our income isn't flowing yet (though they can see the previous jobs' income stream).

I don't think you HAVE to to get the loan from someone who preapproves you - but I'm not sure.
Our preapproval was free - we pay the app. fee when we actually put it through as a loan.
I think everyone suggests a preapproval. The thing about doing that, is it could give you an edge when putting in an offer because a seller may choose you over someone not preapproved since they know for sure you already have the loan you need for it.
I'm not sure how employment history works into the equasion. My broker wanted to know if we were working at our jobs for 2+ years. when we said yes he said that was good, but didn't really elaborate why.
Anyway, hope that helps at least a little. Good luck!!

I think your income history should be fine for verifying your stability at previous jobs and your credit rating will reflect your ability to pay your bills on time.

I agree with what oneday said about giving you an edge in a bidding situation. Lots of sellers don't want to deal with first time buyers who might have difficulty getting a mortgage, or with people who have another house to sell....so, it makes you and Al attractive buyers since you can move at any time [no house to sell, no lease to break] and you're pre-approved for your loan.

Good luck, Lisa! So exciting!!!

---

Posted by LisaT

I've done all the calculators to get a feel for how much house we can afford, but I'd also like to see how much of a loan they'll offer us.

---

Don't forget to factor insurance and taxes

---

How's this work? Am I committed to getting a mortgage from the lender I get pre-approval from?

---

no...we actually had to be preapproved by a specific lender for one complex we looked into...but they said we could get the actual mortgage from anyone we wanted...

---

Do you recommend pre-approval?

---

yes...as stated before...it makes you more attractive...I couldn't believe how many people must not be pre-approved, b/c when we told sellers that we were - you could see their eyes light up

---

Do lenders charge for it?

---

not for the preapproval - the mortgage yes...but that will be paid in the closing costs...

---

Is it simply based on credit rating or do they look up your income history? How far back do they go?

---

if your credit is excellent - you can get a stated income loan- they won't even use your income as a factor...but as a rule your monthly mortgage, tax and insurance should not be more than 40% of your gross monthly income

since we moved and had new jobs...we gave them our 2001 and 2002 W2s - in addition to our 2003s


GOOD LUCK!!!!