How much funds required before getting preapproved for mortgage? Not the actual loan, but buying power?
How much money do you estimate a lender requires you to have immediately to issue a pre-approval letter assuming you’re looking at a 30-year fixed rate conventional loan for around $ 130,000 with 5% down (These are, of course, estimates)? I ask because my wife and I would like to start looking at houses with a realtor as soon as possible, but realtors generally don’t want to or won’t work with you unless you’ve been pre-approved. My wife and I have a decent amount of money saved, a steady work history, good incomes, and excellent credit scores, so I’m not really worried about that aspect. However we are probably short just a little bit of the amount needed for a down payment and closing costs. The frustrating part is that by the time we find a house and close, we will have more than enough, so I suppose my question is this:
Will lenders tell us we have to wait another month(ish) to get pre-approved or will they look at what we’ve been able to save for the past few months and agree that by the time we find a house, we’ll have more than enough money. Again, this is not for the actual loan. We haven’t found anything yet. We just want to be able to seriously look.
Please only advice from lenders and people that have dealt with this type of situation…and please, please, please, no “If you are planning on getting a house, make sure it’s only 25% percent of your take home pay, 3-6 months living expenses, ….” I agree with you, but it has nothing to do with my question. Thanks.