Home pre-approval letter questions ?
I am planning to buy a new home as first time home buyer. If I have to get a pre approval letter before searching for homes, where is the best place to get one.
If I have been maintaining a savings account in citibank from past 5 years, does it make sense or easy to get a pre approval letter for my home loan from Citibank ? or it doesn’t matter?
Do they run my credit history before issuing a pre approval letter ?
How many days does it usually take to get a pre approval letter ?
Does the pre approval guarantee that the bank which issued the letter will lend me the money to buy home ?
Do I need to borrow money from the same bank where I got the pre-approval or I can look for another bank ?
1. Yes, they do a credit check before issuing a pre approval letter.
2. A pre approval does not guarantee they will lend you the money – but they probably will, as long as the home you want to buy meets their requirements.
3. You can look for another bank after you are pre approved, but you will still need to meet the new bank’s requirements for approval – they won’t use the pre approval you have.
4. As for the best place to get pre approval, I’ve found that working with a mortgage broker is easiest – then you don’t have to go from bank to bank to get the best deal. They do that for you. You can find a mortgage broker in the yellow pages.