A mortgage pre-approval is given from the potential lender (at no cost to you) so that the realtor may present an offer to purchase on a property on your behalf. Normally when an offer is written up there is a regular check in the amount of $1000 given with the offer and the pre-approval letter from the lender.
Lenders cannot charge any fees upfront for pre-approval letters or application fees. Once you have made application with your lender of choice you will be given a good faith estimate of charges which will show the application fee and any other related cost to you in order to close the transaction.
Normally you give the realtor an initial deposit and then give them a second deposit after your inspections are done and you are out of attorney review.
if your offer is not accepted then you check will be returned.
Camille Marotta GMI Home Loans, LLC 732-837-1102
Sr. Mortgage Originator... more
I am a Private Mortgage Banker in Monmouth County. When looking for a pre-approval, there are no fees associated with that process. Once you find a home and have a signed contract that has come out of attorney review, you may have to pay for an appraisal, depending on the institution. Feel free to contact me at firstname.lastname@example.org... more