First step is you submit data and you qualify for a loan. You qualify - you might qualify fully - it only means that you are credit worth. The next step is to have a ratified contract that meets lender quidelines and then an appraisal that give the sale or higher value. Now all that goes to the underwriter who can put conditions on the loan. Get the termite work done - get a document - check the sewer etc. There is no complete approval on a loan until the contract to lend is signed and ratified. Until the money is placed in escrow by the lender, the lender can change its criteria be bought, go bankrupt just say forget it.
If you don't feel trust for your lender or your agent fire them as soon as possible. If one finds themselves in the position this person is in pay close attention to the process and start working with another lender ASAP.
Always ask "are you ready to fund the loan and if so when will the loan be funded"?
Tripoint Mortgage Group, Inc.
Many of these online lenders quote low rates at first, but that's rarely the same rate you end up with, since they can't lock it in right away. For many buyers out there, the promise of the low rate seems to make all the hassle -- and drama -- somehow worthwhile.
Most, if not all, of the good realtors in the San Francisco market will want you to work with a local lender for all of these reasons. You might not end up with the very rock bottom rate -- you may pay .125% or ..25% higher in interest rate, but you can be assured you are dealing with someone of integrity and that your transaction will actually close.
Sound to me like you have made a choice to work with an online lender -- that may or may not work well for you. Will you promise to let us know how everything turns out?
In any event, why are you so suspicious? Is this someone you chose because you felt he was trustworthy? Then give him a break please. He could be telling you the truth. If you are not working with someone you trust, how did that happen?
That said, I use the same wording myself. Pre-approval means we have chatted on the phone and I've given you a rough price range. then you give me your paperwork and after a few days you are "fully approved" by a real bank subject to further coditions like a property appraisal and title report. These days, we need your credit card to charge the approval; the appraisal management companies will not accept checks.
Once all of the conditions have been removed from your loan (i.e., the appraisal has arrived and has been reviewed the lender), you have "Final Approval" and we will order your loan documents.
You should have received a letter which lists the conditions once receiving initial appraisal, it would state closing the loan is contingent upon a satisfactory appriasal, a final review of your credit before closing and a verifcation of employment before closing as well as a review of teh title and teh title being clear, thsi are standard.
Ask him for a copy of your committment lender.
Good luck with your purchase and with working things out