Posted on: 07th Jan, 2010 02:29 pm
Hi All,
I saw a mortgage broker yesterday and she told me that pre-approval letters cannot be given anymore by lenders. But she told me, that the legislation is not yet in place and she is not 100% sure about it.
Is that true? I live in Champaign County, IL.
Thanks!
I saw a mortgage broker yesterday and she told me that pre-approval letters cannot be given anymore by lenders. But she told me, that the legislation is not yet in place and she is not 100% sure about it.
Is that true? I live in Champaign County, IL.
Thanks!
Hi suguleasa!
Welcome to forums!
I haven't heard of any such news which states that the lenders have stopped giving pre-approval letter. I would rather suggest you to speak to some other local lenders and see what they have to say in this regard. You can apply for a pre-approval from any of those lenders in order to get a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I haven't heard of any such news which states that the lenders have stopped giving pre-approval letter. I would rather suggest you to speak to some other local lenders and see what they have to say in this regard. You can apply for a pre-approval from any of those lenders in order to get a loan.
Feel free to ask if you've further queries.
Sussane
Thank you for the quick reply!
Could this be at a local level?
Could this be at a local level?
I suspect what re hearing is tied to brave new world of the revised GFE. Preapprovals may or may not have all 6 trigger points for issuance of a GFE but critical point is that HUD is pushing the y. With preapprovals LOs can NOT require copies of pay stubs, W2s, bank statements – you know, the neat stuff to determine is the prospective buyer is actually working or has money. The LO must work with what the homebuyer says to issue a preapproval letter. Ths typically verbal (a 1003 might raise the GFE issue) and I can just hear the if things go south. So, yes, a LO can issue a preapproval letter with multiple caveats but virtually worthless since is based on hearsay.
as our guest so pointedly indicated, "a preapproval letter with multiple caveats...it's virtually worthless since it's based on hearsay."
that is entirely correct.
but "don't ask; don't tell" policy? hmmm...methinks this got off track a wee bit.
that is entirely correct.
but "don't ask; don't tell" policy? hmmm...methinks this got off track a wee bit.
My point is that HUD is stipulating we cannot require pay stubs, W2s, etc. in order to issue a preapproval letter -- just base the calculations on what the prospective buyers tells you. That's my "don't ask; don't tell" slant.
i'm just accustomed to seeing that in a different context, i guess.