looking at a house and i want to put a offer soon.. i know i should wait for a pre approved letter, just curoius what are the chances of getting denied a loan?
2007-12-16 00:48:41 · 5 answers · asked by butters 1 in Business & Finance ➔ Renting & Real Estate
I agree the good faith estimate is just an estimate of fees and no type of approval.
In getting a loan, or being a denied a loan, there are three major factors that will be considered by your lender.
1. Your credit scores
2. Length of employment and income to pay your new debt
3. Income to debt ratio (do you already owe too much for cars, credit cards, etc..)
Also, a good Realtor will help you through the process with a lender, even before you look at a home.
By the way, as a Realtor myself, I offer you this advice: After getting your pre-approval don't be in a hurry to purchase. When you find the right home you will feel it your gut. Most Realtors are good, but don't ever let someone pressure you on one of the largest investments you will ever make.
2007-12-16 01:31:30 · answer #1 · answered by Jeffrey J 1 · 0⤊ 0⤋
Of course you can still get turned down. The GFE is only for your benefit to let you know what payments and fees you'll have IF you get approved.
A pre approval letter is also basically worthless, but it does show the seller that you're serious about buying, as you've already been to a lender.
I would have your Realtor help walk you through the process, it'll make it a lot easier, and less stressful
2007-12-16 10:48:45 · answer #2 · answered by trblmkr30 4 · 0⤊ 1⤋
You can be turned down for a loan right up to the last minutes before it is granted and funded. A good faith estimate means nothing whatsoever. It is merely a written estimate of costs, etc. if you DO get the loan.
2007-12-16 10:21:08 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
A good faith estimate is in no way, shape or form, an approval.
It is exactly what it states...an estimate.
The bank pre-approves based on what you TELL them your income and other debt obligations are.
They issue APPROVALS based on when you turn in your paychecks, W-2's and tax records if requested.
2007-12-16 08:59:31 · answer #4 · answered by Expert8675309 7 · 0⤊ 0⤋
Definitely get the approval letter first. It won't take that long for them to get it for you. Usually that day. At least that's the way it was in our case. Good luck!
2007-12-16 08:54:25 · answer #5 · answered by haircutter 2 · 0⤊ 0⤋