Is there a cost associated with mortgage pre approval letter or is it free of charge?

Asked by Marian03, 10022 Wed Sep 26, 2012

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10
Michael Rich…, , New York, NY
Wed Sep 26, 2012
There should be no cost for the pre-approval itself. However, since a true pre-approval involves applying for a mortgage loan and your application going through the underwriting process, any particular may be charging there usual fees that they collect whenever someone applies for a loan. There are some lenders that will give you what they call a pre-approval letter without you applying and going throughunderwriting. However, this is not a real pre-approval. Until your application goes through tyhe underwriting process, there is no guarantee that you will be approved for a loan. Getting a real pre-approval will usally take up to 2 weeks.

Michael Richman
Licensed Real Estate Associate Broker
Bellmarc Brokerage, Ltd.
681 Lexington Avenue
New York, NY 10022
Phone 212-688-8530 x223 Cell 917-991-2528 Fax 212-758-7495
Email mrichman@bellmarc.com
1 vote
Laura Feghali, Agent, Stamford, CT
Wed Sep 26, 2012
Hello Marian,
Yes, running your credit score will knock just a few points off your total scores.
However; you have a 30 day time frame to shop around for a mortgage and your score not being affected by multiple inquiries when applying for a loan.
I suggest that you inquire about it with the lender who gives you your pre-approval letter as they can explain it best.

Good luck!

Laura Feghali
Prudential Connecticut Realty
1 vote
allan erps,A…, Agent, Pearl River, NY
Thu Sep 27, 2012
No pre-approval costs and many banks will waive the application fee as well. Best of Luck!
0 votes
Gene Neal, , Ronkonkoma, NY
Thu Sep 27, 2012
There is no cost at all. The main thing is working with someone that can prepare you for the real approval. Preparing the pre approval is easy because you can still end up being denied for the loan. If you have any questions don't hesitate to reach me at eneal@athccorp.com
0 votes
Fajardo Dela…, Agent, Flushing, NY
Wed Sep 26, 2012
I never heard of any cost to get pre-approved by a bank.
0 votes
Marian03, Home Buyer, 10022
Wed Sep 26, 2012
When the mortgage consultant runs your credit score check, does it affect the credit score? For example, when a bank runs a credit check to issue a credit card, it deducts certain points from credit score. Does the same apply in this instance as well?
0 votes
Joseph Runfo…, Agent, Staten Island, NY
Wed Sep 26, 2012
Hello Marian, there is normally no fee
0 votes
Christopher…, Agent, Tarrytown, NY
Wed Sep 26, 2012
Hi, it is free and depending on the institutuion should only take a short time to get. You only pay when you start you application and that is usually after you have a fully executed contract. If you need a recommendation please feel free to message me.

Chris
0 votes
Laura Feghali, Agent, Stamford, CT
Wed Sep 26, 2012
Hi Marian,
Yes, a mortgage pre-approval letter is provided by a lender at no cost to you. It only takes a short time to give the lender some of your financial information and then they run your credit scores to determine your eligibility.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes
Annette Holm…, Agent, New York, NY
Wed Sep 26, 2012
Great question, it is free of charge!
0 votes
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