re: Pre-qualification

9 Replies

Hello,

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.

Edwin

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.

Medium srr logo w backgroundColin Smith, Solid Rock Realty | [email protected] | 719‑232‑6709 | http://www.SolidRockRE.com

No, from my experience there is no fee for pre qualification.

Nope.  Never had to pay a fee to prequel thus far.

@Edwin Wong I talked with @Jerry Padilla for the same reasons a few months ago.  He may be able to help you out if your current mortgage broker doesn't work out.

@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

Medium tfsb   fdic   eh   squareUpen Patel, The Federal Savings Bank | [email protected] | (571) 331‑5161 | http://thefederalsavingsbank.com/upenpatel | Lender # National Lender NMLS# 1374243

This post has been removed.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you