Mortgage loan prior to a purchase?

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Can I get a loan for a house prior to getting the house? Many people are loosing the home they want to get due to the long process of getting the money…. Do any financial companies set up loans prior to having the house? I have heard people do it with cars, but houses?

3 Comments
  1. Reply
    Frogs Rock!
    April 30, 2011 at 12:54 am

    You can get preapproved for a certain loan amount so that when you find a house you want you will already be qualified and all you have to give to your lender is the property address when you find your dream home 🙂 If you had excellent credit and perhaps some good collateral (such as another house with a lot of equity) you may be able to get a line of credit on that house and you would have the money available any time but that’s not usually the case for most people. I don’t know of any bank that would give you an unsecured loan to buy a house. Good luck!

  2. Reply
    Obviously Not A Golfer
    April 30, 2011 at 1:25 am

    I agree with Frog Lover, banks go through a number of processes for the selected home; appraisals, flood checks, etc. They’re not just going to cut a check and send you off armed with their money in the hopes that you will acquire an asset of equal or greater value.

  3. Reply
    Kevin
    April 30, 2011 at 2:13 am

    You can get preapproved for a loan to find out what is the maximum loan amount you can afford. Then, you can safely buy the house with the value say 10-20% lower than the max you can afford.

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