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Bene, Home Buyer in Baltimore County, MD

when u are preapproved are you guaranted a loan?

Asked by Bene, Baltimore County, MD Fri Nov 16, 2007

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If you have an unconditional, underwritten, pre-approval, it only indicates that your loan will be funded when submitted as long as the source for funding does not close it's doors and your situation does not change before funding...no guarantee! As you may already know, a pre-qualification is sometimes worth less than the paper it was printed on. A pre-approval is sometimes better and the underwritten, unconditional pre-approval is best of the bunch although still not guaranteed.
0 votes Thank Flag Link Sat Nov 17, 2007
Pre-approval is not an approved loan, so no, you are not guaranteed a loan. Pre-approval is basically the amount a lender has qualified you for based on basic information that you have provided that you can afford a loan for a certain amount. This is why it is important to have a financing contingency in the offer you make to purchase a house. Typically this can be 21 days. This way if your loan is not approved, you can be released from your contract and your earnest money deposit will be returned.
Web Reference: http://www.northropteam.com
0 votes Thank Flag Link Fri Nov 16, 2007
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