Posted on: 28th Oct, 2009 10:43 am
i called citi for pre approval process, he called me back telling that to initiate process i need to pay a upfront fee of $150 which can be refunded if mortage is closed, if i do not purchase home orelse if i go for different bank, this is not refundable, he was not even interested to speak to me when i said i dont want to pay 150$ upfront.
Does all banks apply fee?? from my book reading i learnt that need to shop with various bank within week so as to see which bank give me low rate( within a week so that my credit point wont go down much)
Does all banks apply fee?? from my book reading i learnt that need to shop with various bank within week so as to see which bank give me low rate( within a week so that my credit point wont go down much)
according to myfico.com, you have about a 14-15 day window in which to shop for mortgage credit without affecting your score negatively. but that's not the issue here.
you'll find that numerous lenders will be happy to work with you for preapproval without any fee. shop around some more, but don't be so concerned with "low rate" as you are with just plain good service. good service combined with a good rate will take a lot farther than a low rate and a lack of good service.
you'll find that numerous lenders will be happy to work with you for preapproval without any fee. shop around some more, but don't be so concerned with "low rate" as you are with just plain good service. good service combined with a good rate will take a lot farther than a low rate and a lack of good service.
While I did not take a survey, I would guess that 99 out of 100 lenders do NOT require any fee up front for a preapproval.
So, shop around.
There is nothing wrong with paying $150 to Citi and getting the preapproval as there is nothing wrong with doing the mortgage with them, but, it does limit you. I would NOT pay $150 to Citi is the money is not refunded in case they can give you no preapproval.
So, shop around.
There is nothing wrong with paying $150 to Citi and getting the preapproval as there is nothing wrong with doing the mortgage with them, but, it does limit you. I would NOT pay $150 to Citi is the money is not refunded in case they can give you no preapproval.
thanks for your very very quick response..good to know that i have 14-15 day window.
One more question is ...i know i will qualified for mortage amount which equal three time of my income, but will loan officer consider my savings into account.
Example:
my income is 80k, and my saving are also 80k
how much i will be qualified( roughly) will it be 240K + 80k orelse loan officer will not consider my saving amount?
One more question is ...i know i will qualified for mortage amount which equal three time of my income, but will loan officer consider my savings into account.
Example:
my income is 80k, and my saving are also 80k
how much i will be qualified( roughly) will it be 240K + 80k orelse loan officer will not consider my saving amount?
yes, he said only time i will be refunded is if i close the home purchase but can use it for future purpose for initiating the preapproval again.
your savings will not really impact what you qualify for, but it will serve as your down payment and reserves, which are obviously going to be beneficial to you.
i wouldn't fool with spending $150 just so i could use it at some point in the future. as john said, 99% of lenders in all probability won't have such a charge, so go with the freebie and keep on moving.
i wouldn't fool with spending $150 just so i could use it at some point in the future. as john said, 99% of lenders in all probability won't have such a charge, so go with the freebie and keep on moving.