Home Buying in College Park>Question Details

redeyescribe, Home Buyer in College Park, GA

What does it mean when an individual has a preapproval letter to purchase a home up to $175,000, 30 FHA?

Asked by redeyescribe, College Park, GA Wed Apr 24, 2013

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Pre-approval letters are worthless- unless they come from the UNDERWRITER. A loan officer does not have the authority to approve a loan.
0 votes Thank Flag Link Wed May 15, 2013
This means that the person sat down with a mortgage professional and based on their credit, income, and assets, the lender would approve a home loan up to $175K.

30 FHA means that your credit, income, and assets, met or will meet the FHA guidelines for a 30 YR mortgage. This information is placed on a sales contract when you find a home you like so that the sellers understand you will be obtaining and securing a loan to purchase the property.

If this was given to you, Congratulations.....

Have a great weekend.

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit
Ex-Mortgage Broker of more than 10 years
http://www.everlastingcredit.com
0 votes Thank Flag Link Sat May 4, 2013
It should mean they have been preapproved to purchase a home up to $175,000 with a 30 year FHA loan. What exactly are you trying to find out?
0 votes Thank Flag Link Thu Apr 25, 2013
FYI, if you are in possession of a pre-approval letter and you didn't supply the Loan Officer your copies of your paychecks, Federal Income Taxes, W-2s, bank statements, and a general idea of what area you want to buy in then your Pre-Approval Letter is worthless. I can't tell you how many calls I get a week from people crying there all packed up, have the moving truck all lined up and now they have nowhere to go because their Loan Officer didn't correctly calculate their income. Just the taxes on a property can very from zip code to zip code, or maybe the property has an HOA. If you have done all the things listed above then you have effectively been given a letter to present your Realtor so they can go out and make an offer on your behalf. But I encourage you stay in constant contact with your LO so you can run the numbers on the specific property you are wanting to purchase. Hope this info helps.

Best of Luck!
0 votes Thank Flag Link Thu Apr 25, 2013
Hello,

It could mean a couple of things depending on the writer. Some lenders will review a borrower's credit history and issue a pre-approval letter. Other lenders will review the borrower's credit history, but will also request documentation to validate income, expenses and more to arrive at a better decision. That way, those lenders will be able to include in the letter that the borrower's documentation has been reviewed.

Incidentally, the pre-approval letter must often accompany any offer that is presented. Further, many agents will ask that such a letter be presented or obtained before they will work with a particular home buyer.

Solomon Greene
Georgia Real Estate Brokers Associate, REALTOR®, REALTIST®, Certified Affordable Housing Counselor
Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Thu Apr 25, 2013
When you decide to purchase a home, the very first step in the process is to get Pre-Qualified. For this, you will need to gather your financial documentation including:

• Two most recent years to W-2’s and Federal Income Tax returns
• Two most recent pay stubs
• Two most recent months of bank statements

This will all be reviewed along with your credit report to determine your qualifications. Once your Pre-Qualification request has been competed, you will know more about your purchasing options.

As one of the largest direct lenders in the country, Prospect Mortgage offers one of the largest selections of loan programs available. In addition to the standard conventional, FHA, VA, USDA, and Jumbo, we also offer a wide range on Renovation loan programs. Our Renovation programs include FHA 203K (Streamline & Consultant), HomePath Renovation, and HomeStyle Renovation. In addition, we also have an FHA 580-639 FICO program for borrower with previous credit issues.

$175,000 could be your maximum qualifying amount. It could also just be the amount the Buyer requested.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Wed Apr 24, 2013
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