pre-approval for buying a house...

[rh71]

We would like to move into a new house and have started looking at places for a certain price range.

If we try and get pre-approved now, I'm sure we can be pre-approved within this range. However, if we wait 6 months, we will have ~$12k in savings more. Can/should we RE-pre-approve then for a potentially better house?

- need to know if you can pre-approve more than once
- will that ~$12k do much for our total pre-approval amount
- finding a new house can take months anyway... when should we go thru the pre-approval process?
- once pre-approved by a certain bank, must you go thru them for the mortgage?

Opinions ?

 

[mithrandir2001]

Simple: pre-approvals are generally free so you have nothing to lose by getting one now.

If you aren't serious yet (or if it costs $$$ to get a pre-approval), get a pre-qual...it's very fast and often done over the phone.

 

[rh71]

Hmm... I thought pre-approval and pre-qualified meant the same thing technically. Care to explain?

I'm almost sure it's free... just wanted to make sure it can be done more than once as there must be some kind of record once complete.

 

[bozo1]

You can get preapproved as many times as you want. What you plan on having for a downpayment factors into the amount they will approve you for.

Preapprove all you want and go with whomever gives you the best deal. A plus is that all credit checks from mortgage companies done within the same 2 (or 3, can't remember) week period only show up on your credit report as one inquiry. This lets you shop around all you want within that timeframe without having points knocked off your score.

 

[richardycc]

most pre-approval "letter" has a time limit, usually 3-4 months, after that you'll have to reapply again. you will also have to document where the 12k came from, and have them sit in your savings account for at least 2 months or show that they are liquid and can be use toward the house's downpayment. good luck!

rich

 

[mithrandir2001]

Originally posted by: rh71
Hmm... I thought pre-approval and pre-qualified meant the same thing technically. Care to explain?

Pre-qual means that based on your claims of financial standing, here's the kind of mortgage you can afford.
Pre-approval means based on your verified income, debt and savings, we will lend you $x.