Trying to get preapproved for a loan -- am I getting ripped off?

laredotornado

unread,

Jan 30, 2011, 9:09:35 PM1/30/11

to

Hi,

I'm trying to get pre-approved for a loan so I can buy a condo. The
real estate I was referred to referred me to a mortgage broker, who
told me to bring some work history, tax forms, some other stuff and a
$450 application fee. This got me thinking about how would you find
the cheapest way to get the best loan? I have heard of services like
Lending Tree and DiTech but I'm really not sure how those work and
would value some opinions about the what steps you would take.

Thanks, - Dave

g

unread,

Jan 31, 2011, 12:33:16 PM1/31/11

to

Don't pay _any_ fees to lenders, unless they state in writing that the
fee is payable only on approval.

If you cannot get a bank loan, then maybe your finances are not up to
taking on a mortgage?

BigDog811

unread,

Jan 31, 2011, 12:45:14 PM1/31/11

to

True on both points.

Many, maybe most, states are now licensing/registering mortgage
lenders these days. If yours does, check with the Secretary of States
office to make sure this lender is in order. If not, STAY AWAY.

John Weiss

unread,

Jan 31, 2011, 9:59:09 PM1/31/11

to

g wrote:

> On 30/01/2011 18:09, laredotornado wrote:
> > Hi,
> >
> > I'm trying to get pre-approved for a loan so I can buy a condo. The
> > real estate I was referred to referred me to a mortgage broker, who
> > told me to bring some work history, tax forms, some other stuff and
> > a $450 application fee. This got me thinking about how would you
> > find the cheapest way to get the best loan? I have heard of
> > services like Lending Tree and DiTech but I'm really not sure how
> > those work and would value some opinions about the what steps you
> > would take.
> >
> > Thanks, - Dave

> Don't pay any fees to lenders, unless they state in writing that the

> fee is payable only on approval.
>
> If you cannot get a bank loan, then maybe your finances are not up to
> taking on a mortgage?

Further, make sure the broker puts ALL his promises in writing, and
specifies the entire fee is refundable if the loan is not approved
within ALL the promised parameters.

AngryOldWhiteGuy

unread,

Feb 1, 2011, 4:12:00 PM2/1/11

to

Pre-approved means nothing - it's advertising - it's the same as those old
CC solicitations that used to go out in the mail - "You're Pre-Approved
!!" - and ya still had to go the entire approval process like anyone else.

"John Weiss" <jrw...@attglobal.net> wrote in message
news:ii7sts$kcm$1...@news.eternal-september.org...

g

unread,

Feb 1, 2011, 5:47:20 PM2/1/11

to

On 01/02/2011 13:12, AngryOldWhiteGuy wrote:
> Pre-approved means nothing - it's advertising - it's the same as those old
> CC solicitations that used to go out in the mail - "You're Pre-Approved
> !!" - and ya still had to go the entire approval process like anyone else.
>
>

Where are you from?

In my area pre-approved means exactly that. The lending institution
looks at your finances and based on that they tell you what size of
mortgage you can afford. Then you go out and find a home, knowing
exactly what you can afford.