How accurate is a mortgage preapproval

Hi Lon,That depends on the lender and what due diligence they have done up front. If your loan officer has completed the necessary work up front than you will know the limits, not the lender. Most often I find that I can lend clients more than they are comfortable borrowing. So communication, education and transparence between you and your lender is what sets the range. Then, when you go out to bid on a home with your agent your lender should support that offer with a letter that makes you feel comfortable about the offer.More on this highly effective process can be discussed with me or a member of my team. Ron

Actually it's the borrower who can't exceed the sales price on the pre-approval letter. Pre-approval are stating that based on the information the borrower has provided on their application and after reviewing the credit report a borrower can make an offer on a property up to X sales price using the loan product and parameters used for the pre-approval. We should setup a time to talk and go over this in greater detail.

The "PreApproval" letter is as good as the information you have provided to your lender and the work that your lender has put into verifying that information. The key to a solid mortgage preapproval is the communication level between you and your loan officer. The letter can state a loan amount or a sale price that makes you comfortable or it can be at the top of your budget. Only you and your loan officer knows which is which. I would love to help you with the purchase process. Give me a call!

It depends, did the lender review your credit, income and assets prior to giving you that pre approval? If so it should be very accurate. If not it's really not worth the paper it's written on. No they don't need to remain with in a certain amount.

Proapproval and prequal letter are good only when loan officers checked income, credit history, assets, otherwise, these letters are useless since a lot of people do not want to give SSN away when they are NOT sure which loan officers to choose yet, and cost money and time to check everything, If I am not sure about a borrower from mortgage software, I will get at least Fannie Mae (DO) or Freddie Mac (LP) underwriting software to verify if loan can be go through smoothly, that is why I do not have any purchasing loan delayed to close in past 12 years.Jenmi

Please make sure that you speak with an experienced lender who will lay out various options and intelligently discuss the pros and cons of each with you. Your pre-approval should reflect in writing that all financial documents have been reviewed. This will make for less stress and potential issues during the process as well as make it more likely for a seller to accept your offer on the home you want. I'm happy to help with the financing or just give you advice. If you need more information, or a competing rate quote call, email or use my live support button to discuss or get in touch with me. Web Address for live chat or quote is: http://www.loansfromrob.com/quote/ Email is robertlh66@verizon.net and direct phone is 240-752-7549. Good Luck -- Rob Hanson