I called GMAC yesterday and got pre-approved for a mortgage, does this mean for certain that I'll have a loan. I have a collection they said a may have to pay off. The loan is an FHA.
- Anonymous1 decade agoFavorite Answer
The only time a mortgage is certain is when the fat lady sings at least 3 times.......FYI - Only a few lenders require collections be paid prior to closing on FHA loans...this is not an FHA requirement.Source(s): I'm a mortgage banker/broker
- Steve DLv 71 decade ago
Whiel it is a good indication that you will get the loan, it is not 100% guaranteed. The pre-approval is based solely upon information you provided. This information still needs to be verified and your credit reports pulled to make sure that everything is as you say. The underwriter then needs to provide final approval.
It is in the best interests of the loan officer/broker to only pass on applications that are likely to be approved.
- Ryan MLv 71 decade ago
No it is not "for certain" because GMAC has not had a chance to verify the information that you gave them. Pre-qualification meas that based on the preliminary information that you gave them, there is a good chance that you will be approved, but nothing is 100% certain until the dotted line is signed on the mortgage note.
- blibityblabityLv 71 decade ago
It wont go through underwriting and conditions until you have an appraisal, long after you sign a purchase contract. There are no sure things in this business until the money is in hand. Pre-approved just means they looked at your paper work, and you are qualified. Getting the loan is likely, but there is still much work to be done.
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- David ZLv 71 decade ago
no way does it mean that. It means you have about a 60% shot.
This is a brutal process that will leave you frustrated at times.
Ask if it has gone thru underwriting and ask for the "conditions." The word "conditions" will truly let you know how far along in process you are. Do not make any offers until you see the list of "conditions."
I have my list of conditions in hand and have not yet made an offer.
- DonnaLv 44 years ago
Buying a house and getting a mortgage is not for the impatient. It takes as long as it takes.