can someone plz tell me what the difference is between a mortgage commitment and a preapproved mortgage? thanks!
“a mortgage commitment” = contract “preapproved mortgage” = not a contract
Correct what joey says. If you’re preapproved it just says some guy sitting behind a desk say ok with your salary and your debt/expeneses you “should” be able to afford that $400K house. When you have a commitment its more of a contract that says, we ran you through our system and we have approved all the documentation and we will extend you a loan, but usually its contingent upon an appraisal. Once you get that appraisal off you’re in better shape but you can’t get that until you get a house that you want to buy. You have more bargaining power with a commitment vs a preapproval.
today you have bargaining power with a valid drivers license, a heartbeat and a job.
Not true if you can’t get a mortgage tehy don’t want to waste their time. Well I guess it depends on the location, location, location.
thanks guys! im looking at data for mortgage commitments, and there is another filter for Preapproved. So some commitments are preapproved and some aren’t. Since a commitment is a contract, while a preapproval isnt, why would someone get a preapproval if he already has a commitment? any ideas?
He/She might have had the preapproval before the committment.
jimjohn Wrote: ------------------------------------------------------- > thanks guys! im looking at data for mortgage > commitments, and there is another filter for > Preapproved. So some commitments are preapproved > and some aren’t. Since a commitment is a contract, > while a preapproval isnt, why would someone get a > preapproval if he already has a commitment? any > ideas? You would get a pre-approval (or not) prior to getting a commitment. When you are beginning your house search, you walk into a bank and say “I want a $400K house”. They say “OK, fill out this form”. You fill it out and they say “OK! Congratulations you’re pre-approved”. It makes real estate agents fill nice.
I think preapproval means they’ve run your infomration through the system and have preapprived you for a certain limit. A commitment is when you have actually applied for and been approved for a mortgage on a specific property but haven’t closed yet?