guaranteed loan offer." (I.e. not a commitment to lend)
"Don’t worry about which word lenders use. Some lenders may use the word “prequalification”, while other lenders may call the letter a “preapproval”. In reality, lenders’ processes vary widely, and the words they use don’t tell you much about a particular lender’s process. The important thing is that the letter you receive provides enough information for sellers in your area to take it seriously.” The best way to make sure that the letter you have will serve its purpose is to have the loan officer explain to you and the realtor the criteria that their institution used to create the letter. A (TBD) "Property to be Determined" commitment letter however includes all of the elements of a pre-approval and then takes it one step further. The full application package is submitted to an underwriter who reviews the materials carefully to make sure everything matches the lending requirements. You will receive an actual loan commitment to lend to you pending the identification and approval of a specific property that you wish to purchase.
PROCESSING: A LOAN ESTIMATE
Once you have your sights set on a property and have your pre- approval letter in hand, your next step should be to obtain a Loan Estimate (LE) from the lender. This replaces the document known as the Good Faith Estimate (GFE) which was discontinued in 2015. A Loan Estimate (LE) is a three-page form that you will receive from the lender within three business days of applying for a mortgage. The form provides important information, including the estimated interest rate, monthly payment, and total closing costs for the loan. The LE also shows the estimated costs of
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