chachke Posted June 19, 2008 Report Share Posted June 19, 2008 Question: Let's say I am preapproved for a mortgage, with the preapproval being valid for 90 days ....what happens if I do not find a house before the preapproval expires, and meanwhile my credit scores improve because some balances have been paid down on CCs or because I am able to have a few old negative accounts deleted? When I get re-preapproved, will they run a new credit report on me again and will I get dinged bad for having multiple mortgage inquiries? Would they consider pre-approving me for a higher amount if my credit is better in such a short time or will it be the same approval? Ugh, I'm sorry if these are stupid questions, I'm really new at this and there is just so many questions in my head. Thank god for you people. Link to comment Share on other sites More sharing options...
firstsource Posted June 19, 2008 Report Share Posted June 19, 2008 First of all, Don't Panic. I would suggest that you take your time and find the right house for you and your family. Don't just buy something because your approval is about to expire. I know that you would not do that, but from the tone of your post...Your Loan officer should give you the option of running your credit and the AUS (Automated Approval) right before your final submission to the lender. I do that often for people, but do check with your LO before you get much further. Now, let's say that you don't find a home for 4 months after your first approval. Depending on where your credit scores are now (the higher your score, the less of a hit) it could be that worst case you break even with getting your utilization down and having the hit. Stupid questions? I am pretty good at what I do, playing with numbers etc. I had a new health insurance company send me a bunch of figures and I could not for the life of me understand what they were talking about. So, in Health Insurance and in a lot of other stuff I ask what may seem to professionals to be "stupid" but it would REALLY be stupid of me to not have asked. Besides, this is fun answering questions, so glad you came hereCharles Link to comment Share on other sites More sharing options...
chachke Posted June 26, 2008 Author Report Share Posted June 26, 2008 Thanks Charles, I really appreciate your help and expertise!! Do you know about how long it usually takes to find out if you are preapproved once you submit the application and documentation? I'm sure it depends on many factors but how long is too long? Link to comment Share on other sites More sharing options...
firstsource Posted June 26, 2008 Report Share Posted June 26, 2008 Depending on how busy the LO is, and if the loan is normal, then it should not take more than about an hour for the initial loan approval. I define a loan approval as: The AUS (Automated Underwriting System) has given the ok based on the information provided. (And remember garbage in/garbage out)The Income (Paystubs/W-2's) and the Assets (Bank statments/Stocks/401K etc) that the borrower has sent match up with the information given on the loan application. If it takes more than that, then the LO should call you and relate that yours is an unusual situation because of.... and it will take longer. A final loan approval takes longer: Appraisals take timeTitle work takes timeetc. In today's environment should not take more than about 3 weeks - as long as every thing is normal. If unusual, then longer. ie-Mobile Homes sometimes take a long time because there is no HUD sticker, or the civil engineer's report is slow in coming etc. Hope that helps.Glad you read the "Don't Panic" part.Charles Link to comment Share on other sites More sharing options...
chachke Posted July 30, 2008 Author Report Share Posted July 30, 2008 Hey there...I have an update! As of a few weeks ago, we have been approved for a FHA loan for $360,000! Now I have a new question...we've found a house we love, went to see it and we want it. Listing price is $363,000 and apparently there are multiple offers on the table already but it is still "active" on the market. My question is, if we've been pre-approved for only $360,000, is there any possible way we could get a mortgage approved for just slightly higher, like $365,000 or is the $360,000 the absolute limit of what we can borrow?? Link to comment Share on other sites More sharing options...
firstsource Posted July 30, 2008 Report Share Posted July 30, 2008 what county do you live in? Link to comment Share on other sites More sharing options...
chachke Posted July 30, 2008 Author Report Share Posted July 30, 2008 I live in San Diego... Link to comment Share on other sites More sharing options...
firstsource Posted July 30, 2008 Report Share Posted July 30, 2008 Great. The FHA Loan limit for your county is $697,500. So next thing is to ask your Loan Officer to run your loan for the increased amount. As long as your income/etc works you should be able to get an increase. Charles Link to comment Share on other sites More sharing options...
chachke Posted July 31, 2008 Author Report Share Posted July 31, 2008 really? That would be wonderul! I wasn't sure if the amount of $360,000 was the absolute most they would approve me for. I will talk to my broker. Thanks for all your help!! Link to comment Share on other sites More sharing options...
Fizzle1979 Posted July 31, 2008 Report Share Posted July 31, 2008 Wouldnt your down payment bring the loan amount down? Link to comment Share on other sites More sharing options...
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