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Steve Jhee, GRI
Licensed R E Salesperson Keller Williams Rlty Landmark Steve Jhee K W Rlty Site 3255 Francis Lewis Blvd Bayside, NY 11358 O: 718-475-2700 Ext: 2812 M: 917-957-7021 Contact Me |
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What to Expect during the Pre-Approval Process
An application fee (be sure to ask about this prior to your appointment) If the bank likes what it sees, you'll receive your good faith estimate (GFE) -- a document telling you the likely terms you'll receive including the interest rate, loan type and closing costs. From there, you will be able to tell what price range of homes to focus your time and energy on.
It is suggested that you repeat this process with multiple lenders. With multiple GFEs in hand, you now have room for negotiation. Look for hidden fees and see which estimate works best for your financial situation. Don't worry about hurting your credit score; credit scoring recognizes multiple checks in succession as part of the loan-shopping process and will not penalize you for doing so.
Remember: just because you are pre-approved does not mean you are guaranteed to receive a loan from that lender. The actual loan is granted after the bank conducts an appraisal to make sure you aren't paying more than the house's value. This prevents you from over-paying and protects the bank against any buyers who may default on the loan in the future.
