hahnjj, Home Buyer in Blairsville, GA

we are pre-approve and the bank is locking in the interest rate does this mean we will get the loan once it has gone this far

Asked by hahnjj, Blairsville, GA Wed Jun 19, 2013

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Cindy Davis, Agent, San Diego, CA
Wed Jun 19, 2013
There are never any guarantees. The bank must go through underwriting procedures...taking into account the condition of the property, the value, and any other details about your finances.

No guarantees until underwriting is complete.
1 vote
Jason Sills, Agent, Cape Coral, FL
Wed Jun 19, 2013
Unfortunately it does not mean that you will get the loan. It is quite a process to get the loan done. Once you find a home, not only do you have to qualify but so does the loan. You must maintain your credit throughout the process. Lenders are getting tighter on their regulations. You also should inspect any home your purchasing before even sending out an appraiser. If the home inspection comes back bad then you can save yourself an appraisal fee.
1 vote
Ruth and Per…, Agent, Los Gatos, CA
Wed Nov 13, 2013
You need to be Approved at the Under writer level to be sure.

Good luck

0 votes
J, Agent, Greensboro, NC
Wed Nov 13, 2013
Great advice for you below. You'll go through a series of underwriting processes so during this time I would suggest not moving any cash around regarding your existing checking/savings/CD or other accounts. If you have credit cards do not make any new purchases or do anything out the norm. The underwriters will more than likely run another credit check on you prior to approving your loan product at the finish line.

I do agree with most who have commented on locking in an interest rate. Years ago it financially made sense to do so, not so much in today's market where interest rates are still very low. Also, keep in mind bank loan products change frequently and you don't want to be toward the end of the approval process and learn that the loan product you qualified for has changed. Stay in touch with the bank and you should not get a last minute surprise regarding your loan. Good luck to you and I wish you all the best in your endeavor.
0 votes
Gabriel Reyes, Agent, Cupertino, CA
Wed Nov 13, 2013
As the previous 9 responses have said, this does not mean you have the loan just yet and there is still long process to go through! Speak to your lender about any questions regarding the loan.
0 votes
, ,
Fri Oct 25, 2013
Most likely, though many banks lock the loan at application as a part of there normal procedure. That is one of the reasons these banks have to charge such a high rate, it is very expensive to the bank to offer that service .

You actually need to ask your lender if the mortgage has been underwritten and approved.
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Jun 19, 2013
Some of the things just said are important and true, but,
Do you realize, (have they explained it to you) that you are paying them to lock in a rate?
I am not a fan of locking the rate, especially when the rates are as flat as they have been.
And they are charging you to do that; probably about $400-$500!!
You do realize that?
And what rate are they locking? Is it a low rate? A great rate?
What does your GFE say?
The Good Faith Estimate is required by Federal Law and shows every fee and charge, along with the Interest Rate and the APR.
Where is your Buyer's Agent while all this is going on?
0 votes
James Endo, Agent, Los Gatos, CA
Wed Jun 19, 2013
If you are locking the interest rate, then it means that you are in contract or doing a refinance. The pre-approval is the preliminary review often subject to further documentation. As a broker and former lender for the past 26 years, what all of this means is that you are on the right path to getting a loan, however it is no guarantee that you will get it JUST because you have come this far. Cooperate with your lending and/or real estate professional who will guide you through the process, AND be sure to ask a lot of questions like you are here so you can move forward with confidence and certainty.
0 votes
Terri Vellios, Agent, Campbell, CA
Wed Jun 19, 2013
Pre-approval just means the initial review looks promising for the amount of purchase. They still must gather more information from you and review that information. Then the parties who decide to loan must review the information. There will be conditions on your approval, such as a purchase contract, appraisal, if an HOA those documents, Preliminary Title Report, etc. Those items need to be reviewed too. Once the Lender is satisfied then they will approve the loan. If they are not satisfied they may deny the loan.

The reason to lock the rate is because rates are fluctuating right now and they want to keep the rate at today's market while they are reviewing the documentation.

Your lender should be explaining all this to you in a way that you can understand. Do you have an agent you are working with on the purchase? If so, they too are there for you.
Web Reference:  http://www.terrivellios.com
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