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FirstTimer, Home Buyer in Santa Clara, CA

How long is pre-approval "good" for?

Asked by FirstTimer, Santa Clara, CA Sun Jan 20, 2008

We're first time home buyers here in Silicon Valley and stil unsure how the process works. Apparently we should get pre-approved for a certain amount before going to look at houses, but we don't know how long the pre-approval would be good for before it lapses. We were looking to buy during the summer. I know each lender is probably different, but I woud like to know what is the standard range?

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6
each lender is indeed different, but most of them will offer a 90-day pre-approval, and will renew it when it nears expiring. There is rarely a fee or obligation involved in a pre-approval, so this is the easy part, and helps you identify your price range for your search.

Good luck, and enjoy!
3 votes Thank Flag Link Sun Jan 20, 2008
Alan May, Real Estate Pro in 60201
MVP'08
Contact
Your pre-approval should be good for at least 60 days depending on the lender providing it. They understand it takes some time to choose the right home for you. This does not lock-in any particular interest rate so that can be done later. Your preapproval (not prequalified) letter should be submitted with your purchase offer. That's standard in our area so you are on the right track. However, there is a difference in pre-approved and pre-qualified which should be explained to you by your Realtor. If you do not have a Realtor, I would be happy to explain it to you and answer any other questions you may have. Please also visit my website below that has a wealth of free information and MLS search capability. It's a good time to buy California real estate. I can also email you foreclosures and bank owned properties that are priced competively. School reports are also available from me if that is important to you. Kind regards.
0 votes Thank Flag Link Tue Jan 29, 2008
Im not sure about the rest, but i would be very interested in my pre-approval as a buyer. I would suggest talking to the lender that pre-approved at least ever 2 weeks to assure you programs have not changed and that what you qualified is still available. If everyone did this we might not have so many properties fall through and back on the market.

Be very cautious with financing at the moment this is the biggest unknown as banks change guidelines weekly. Rates also changing could help or hut your DTI also. Best bet stay in touch and dont take anything for granted.
0 votes Thank Flag Link Mon Jan 28, 2008
Hello Firstimer,
Yes, you must be pre-aproved. Don't worry about how long a pre-approval letter is good for. I work with many different lenders and once my client is approved for a certain amount I have the lender provide a pre-approval letter for the price and the specific property my client is interested in.
Hope this helps!
0 votes Thank Flag Link Sun Jan 20, 2008
Yes as a buyer you should get preapproved for a loan for several reasons. To know how much you can qualify for and it is almost necessary to have your preapproval when presenting an offer as it show your strength. Usually a preapproval is good for a 90 day period but every lender is different. In our current market some approval's are good for 45 to 60 days as the market is every changing. I would suggest getting the preapproval as it provides you with a good foundation and knowledge about the financing you will be looking at. Good luck.
Web Reference: http://pamwinterbauer.com
0 votes Thank Flag Link Sun Jan 20, 2008
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Ask the person who gave you the pre-approval directly; keep in mind that if rates significantly raise or lower, it may give you either less or more buying power. Usually a quick call or email to your loan professional for an update is all it takes.
0 votes Thank Flag Link Sun Jan 20, 2008
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