I have a pre-approval letter for a mortgage from my bank but it will expire soon.?
by Mortgage Rates on Tuesday, October 26th, 2010 | 7 Comments
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I’ve worked with Mortgage loans for years. You need to call whoever gave you the pre-approval letter. There is always a chance you could get an extension for the same rate, but you have to ask first.
If you shop around for mortgages you may be able to find a better offer. Make sure that you read the fine print. Good luck!
A pre approval does not lock in your rate… it just states the current rate. If your lender did not explain this to you.. get a new one! Pre approvals mean pratically nothing. You can get a pre approval in 10 minutes from many lenders on the web. They are not contracts.
If you ring your bank and explain to them they might extend your letter but it won’t matter because you have been approved and they want to give you money because they will make plenty back
and if the interests rates go down you don’t want to be stuck with that offer anyway, so when you find something as long as your certs haven’t change they will give you a loan anyway.
Yes…all that letter means is that they will have to repull your credit and you’ll have to update your income/asset documentation.
However, the interest rate they gave you, may not be the same.
Secure a down payment first. Don’t accept anything that says pre-approved, that’s just an advertisement. Spend time finding the right mortgage company, not a real estate agent, a mortgage company..
Never JUMP into something.
Your letter did not guarantee you an interest rate. That’s a common misunderstanding. You will be allowed to lock in an interest rate as soon as you have an accepted contract. Don’t even worry about the letter at all. There are 150 mortgage companies that are desperate for your business if you have good credit.
There is one way for you to guarantee an interest rate. SOme banks will keep today’s interest rate for you for 90 days for $1,800 paid upfront and nonrefundable . No one ever does this because it’s so expensive. Ask how much a 6 month lock would cost you. It’s fun to know.