I want to be prequalified before applying for a loan. How do I do this? Will my credit report be affected at this stage with an inquiry? If a lender does this, will I have to use them?
Just about any real estate agent will run a 'prequal' on you, just to have an idea of how much home you might be able to buy. Most off-the-cuff prequals don't pull your credit report.
A preapproval, however, is more complicated -- it's actually the first step in getting a mortgage loan, and pulling your credit report is part of it.
A typical preapproval signifies that, pending completion of satifactory appraisals and inspections, the lender will loan you a given amount of money (based upon your credit, income and debt load) for the purchase of the home.
You're not beholden to the lender even after you've received a preapproval letter, but if you decide to take your business elsewhere, you'll lose whatever fees you've already spent for the credit check and other items.
What's involved in a prequalification?
Recommended Reading
-
The plumbing in my home is failing. Is there help?
You should first check with your homeowner's insurance company to see how much of any damage might be covered. -
When do you predict the housing market to turn around?
There are already signs that pockets here and there are starting to recover. -
Why didn’t my bank notify me of my reduced HELOC?
If you mean "advance notification," the answer would be "no." -
How do I get answers regarding CAIVRS?
HSH.com's article, “On the feds' deadbeat database? Here's how to get off it,” explains what CAIVRS is, why you may be on it, and how to get off it. -
Can I lower my interest rate without refinancing?
In general, lenders require borrowers to refinance in order to lower their mortgage rate. However, there is another way to lower your mortgage rate without refinancing: a loan modification.
