Does anyone know if you have to pay a fee for getting pre-qualify for a mortgage? I plan on going to see a mortgage broker to see where I stand.
Not at my local bank...
No you should never pay a fee to become pre-qualified. If they ask for any fees up front, I would highly suggest looking for another lender.
No, from my experience there is no fee for pre qualification.
Nope. Never had to pay a fee to prequel thus far.
@Edwin Wong There should never be a fee to get pre-qualified. As most folks know, a pre-qualified letter, is a very rough analysis and indicates that you should be able to get a loan. Pre-qualification does not go through underwriting.
This is not the same as you will get the loan. To be sure what you want is a "Fully Approved Loan". In this scenario you are doing to full loan application and it goes through underwriting and the property address as TBD. Your loan will be approved with certain contingencies: Rate cap, price cap, property appraisal, clean title, and a few more. Nothing that would stop the loan from funding, if you are buying within the guidelines and is a good home. A Fully Approved Loan will give you (the shopper) leverage on your bid as the borrow knows that you are already approved. Given the time that the bank puts in to get you the Fully Approved Loan they will ask for a small up front fee, which you would be credited at closing. This is a small surety for the bank that you are serious and not just shopping around.
Hope this gives you the insight you are looking for. Feel fee to ask me additional questions.
Upen Patel, Mortgage Banker
The only thing that they should ask for prior to closing is for the appraisal to be paid for, and this is after being pre-qualified.
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