For how does a preapproval letter with the interest rates hold good?

Asked by Anu, 94523 Thu Jun 10, 2010

For how does a preapproval letter with the interest rates hold good? If I get a preapproval letter from the lender but haven't yet found a home that I like for 4 to 5 months do I again need to get pre-approved?

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Bob Georgiou, Agent, Danville, CA
Thu Jun 10, 2010
BEST ANSWER
Anu,

Generally your preapproval is good for about 90 days orso but this is more of a guideline. It can be shorter or longer based on many factors too long to list. If youa re in regular contact with your lender, they can advise you on the status of your approval and provide firm information for you. If your financial situation has not changedand as long as interest rates are stable you should be fine.
Web Reference:  http://bob2sell.com
0 votes
Waseem Sufi, Agent, Livermore, CA
Fri Jun 18, 2010
An approval letter is your financial picture taken at a moment in time. Theoretically, in my opinion, this letter is good for that moment only unless the lending institution provides you with an approval date range with conditions attached. It would be safe to say that any changes in conditions will warrant another approval letter.
Web Reference:  http://www.waseemsufi.com
0 votes
Kamal Randha…, Agent, El Sobrante, CA
Thu Jun 10, 2010
Hello Anu,

Simple answer, YES. You will need to get pre-approved again. And keep in mind your lender can request documents from you even days before closing to make sure everything is accurate and still the same.

Kamal Randhawa
Broker
510-932-1066
0 votes
Suzanne Look…, Agent, Lafayette, CA
Thu Jun 10, 2010
Anu,
Did you get the answer you were looking for? If not, I can refer you to some great loan people or you can contact any that have replied to this post.
Regards,
Suzanne Looker
Web Reference:  http://www.suzannelooker.com
0 votes
Dave Sutton, Agent, Portland, OR
Thu Jun 10, 2010
Four to five MONTHS? You certainly do need to update with a lender. NO lender I've ever heard of would lock a rate for anywhere near that long. These days 30 days would be a stretch.
0 votes
Paul Schectm…, , Marin County, CA
Thu Jun 10, 2010
When you have a purchase contract that is signed by both you and the seller then you are able to lock in your rate. At point you are in contract. You must have submitted your application to the lender together with your supporting loan application documents. A pre-approval/pre-qualificationl letter is simply an opinion letter based on the review of the information that you had submitted.
Web Reference:  http://www.RealLoan.com
0 votes
Diana Margala, Agent, Rancho Cucamonga, CA
Thu Jun 10, 2010
Anu:

You should be in contact with your lender to have him/her update your pre-approval letter. As a listing agent I always make sure that the informaiton on the pre-approval letter is current. Also when you are making an offer you want to make sure that you have a current bank statement to show your ability to pay for the down payment and closing costs.

Diana 909-560-0145
Web Reference:  http://www.dianam.com
0 votes
, ,
Thu Jun 10, 2010
Hi Anu...

As a Mortgage Broker my pre approvals are written at the max qualification rate. Rates are not locked until the property is identified do to loan to value changes, property type etc. If you have any additional questions please feel free to get in touch.

Happy shopping,

Brian
Web Reference:  http://www.loansquawk.com
0 votes
Vickie Nagy, Agent, Palm Springs, CA
Thu Jun 10, 2010
Hello Anu,

Your loan rate is generally not 'locked in' with a pre-approval letter. It most often takes a completed agreement between buyer and seller and then you may lock or float a week if you think rates are going down. You really need to discuss this with your lender.

Kindest Regards,
Vickie Nagy
Keller Williams Realty
CA DRE#01363932
0 votes
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