Home buying questions ?

Question

Does a pre-approval letter saying were approved from a mortage company, really mean we'll get the home loan?

What is a mortage consultant? sorry were a first time home buyer, and really confused.

and once it goes to the underwriters, what are the chances they'll say no. If I have that pre-approval letter.

The pre-approval is from the mortage company. That will finance the house, also my interest rate is 7% fixed, is that good?

Answer 1

Pre-approaval letters are a dime a dozen. No, it does not mean you'll get the loan. A pre-approaval letter simply says that a mortgage company is willing to do business with you and preliminary facts seem to prove you'll be good for the loan. Most sellers (and many real estate agents) want a pre-approaval letter before considering doing business with you.

Next step is to complete the application. This mean sending tax returns for the past two or three years to proove that you really did make the money you said you did. Also, they'll want you most recent bank account statements to proove you have enough money on hand for the down payment. They'll ask for last 30 days pay check stubs to proove you are currently employed. And they may ask for other documentation depending on your financial status.

After all of that is collected and processed then your application will be "approved" (or not approved). Only then will the mortgage company lock in a gaunenteed home loan and set the percentage (which will only be good for a certain amount of time since the market fluxuates so much).

Shop around! Not all mortgage companies are the same. And GET EVERYTHING IN WRITING and READ THE FINE PRINT - all of it. Tell the mortgage guy that you want to know every single item (fee/cost) that will be on the closing documents before closing day (so there are no suprise fees you weren't expecting).

I'm a mortgage consultant which means I can advise clients, sell the product, complete paperwork but my broker (the man I work for) has the license to sign off on all of the loans. In big firms you talk to consultants and the broker usually manages the operation. Many brokers work at home or share offices and will write all of their own clients loans (self-employed).


Best wishes.

Answer 2

Mortgage consultants put your numbers into programs to find out if you would be eligible for a mortgage with any of the banks they work with. A pre approval means that the bank has agreed to take a chance and see if they can give you a loan. When it goes to the underwriters it usually means that things are going well. The only way that you could be denied from that point is if you did some extensive spending to make you credit scores change. Even if you get denied for a mortgage at that point, you are OK. You have the right to get your deposit money back.

Answer 3

I guess someone is calling themselves a mortgage consultant that used to call themselves a mortgage broker. I would be a little confused also and I would ask them what that means.

Pre-Approval is pretty solid but all loan companies leave huge loop holes just in case:

You lose your job just before closing

they find out you have been lien about something

you go borrow a bunch of money and buy a car or boat just before closing

Their investor that is providing the money backs out of the offer just before closing

or several other things. They normally list them on your letter.

The vast majority of the time you are in control of the reasons that cause the loan to not work. The other reasons are rare (don't get a sub-prime loan)

Answer 4

Mortgage consultants, CAN NOT pre-approve you for loans.
It has to be sent in to mortgage companies for an approval.
I am a Mortgage Consultant, and really hate seeing people getting ripped off.

Answer 5

you will have a good chance of being approved, but depends on your credit score...and other factors.

mortgage consultant is a fancy name for loan officer.
underwriters are the only people who can approved your loan no matter where you get your mortgage.