Financing in 91326>Question Details

Mehran Kamari, Home Buyer in Northridge, CA

Pre-approval and GFE timeline?

Asked by Mehran Kamari, Northridge, CA Tue Oct 12, 2010

Hi all, I've been saving to purchase a new home and I've bought and read a couple of books on the process/mortgages.
Some important things I have learned are:
1. get pre-approved before I house shop.
2. Compare GFEs from 2 mortgage brokers and a direct lender (along with a written statement the fees wont change by more than 10%)
3. Lock in my rate (rate is not locked til I have a confirmation in my hand).

Now am I supposed to get pre-approved with all 3 places I'm getting the GFE from?
(a part time loan officer I know said his company won't give out a GFE's until I have an address of the property I want)
How can I give an address without looking around with an agent (which requires pre-approval first)


Any advice in the steps I can take with these things in mind to get the GFE's so I can decide which company I want to fund my loan would really help.

Thanks so much in advance!

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I'm not sure if you can get a official GFE unless you have the sales price of the home. Why not stick with one lender, find a home, submit an offer. At that time, request the good faith estimate. If you're not satisfied with what they have to offer with closing costs, points, etc. Find a lender that offers you what you want.

Best of luck to you!
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Tue Oct 12, 2010
You only need one pre-approval in order to start shopping for homes. Once you've found a home that works for you, you can contact as many mortgage brokers/direct lenders as you like to compare rates. You will only ask for a GFE from companies that will pre-approve you. There would be no point for a lender to give you a GFE if you couldn't get pre-approved through them.
Web Reference: http://www.paprohomes.com
0 votes Thank Flag Link Tue Oct 12, 2010
You only get a preapproval by a direct lender. Mortgage brokers cannot give a preapproval since they are not using their own money but the money comes from a 3rd party. Most companies don't want to give you a GFE until they have the address of the property (then they have to within 3 business days of speaking with you) because of the potential liability. The loan officer can give you a handwritten good faith estimate so that you know roughly what closing will cost (so you can see if you have enough money for the deal). Rates cost money to the lender, they will not lock in until they have a deal from you and know how many days they need to set aside the money.
0 votes Thank Flag Link Tue Oct 12, 2010
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