Pre-qualified for mortgage, am I obligated?

I got a pre-qualification letter from a lender for a 2 year ARM. Once the offer is accepted, do I have the option of pursuing other types of mortgages? To fulfill the purchase contract am I obligated to get a 2 year ARM with the lender I pre-qualified with?

2 Answers

  • Anonymous
    10 years ago

    If you were pre-qualified on a 2 year ARM you were pre-qualified at a ridiculously low rate, which will arbitrarily lower your payments and thus your DTI. No, you don't have to go with that lender, (nor should you) but you must understand that your pre-qual is not worth the toilet paper it was written on. I don't even know of any mainstream lenders still doing 2/28 ARMs. You either have terrible credit or you have gotten yourself locked up with someone that is still trying to originate loans from 2005.

    Go get yourself properly qualified for a 30 year fixed and go from there.

    Source(s): California Mortgage Loan Officer
  • 10 years ago

    NO you are not obligated. You as a consumer can shop around and get pre qualified with several lenders to get the best rates. You are not obligated until you "LOCK IN" your rate and sign the loan docs while in escrow. You can even try to talk to the different lenders about what the other is offering you as far as rates and terms, points, etc. Tell them you will go with another lender if they cannot get you the best rates and terms. Good luck!!

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