Pre approval for Mortgage Loan

[tinkerbell615]

My DS is looking to purchase his first home. The real estate agent told him he should get pre-approved for a loan to find out what type of money he qualifies for and what his comfort zone would be. He tried the credit union today and they want to charge him $100 for pre-approval. Is that how it works? Do all places charge a fee for pre-approval of a mortgage loan. The agent says if he is pre-approved and then finds something he likes and needs to move quickly to get the house that everything would be ready and in order for him to do so.

Can anyone help me with this, so that I can help him a little bit?

Thanks in advance.

 

[Tiana]

.......

 

[Diabolicdesire]

When I was looking to buy a house several years ago I was not charged to get a pre-approval. I would check with some other lenders.

 

[Darcy03231]

Up until recently I worked for any attorney that specialized in closing for residential mortgages. I have never heard of anyone being charged to be preapproved.

 

[Leshaface]

We are in the process of all our paperwork for our new home, and we did not get charged for pre-approval which was last month.

 

[disney-super-mom]

Being in real estate all my life......no, I've never heard of anyone being charged a fee for getting pre-approved for a loan. That's a new one.

 

[ShiPooOwner]

That doesn't sound right at all. I have two recent experiences. I was charged $10 from TCF for a credit check during the preapproval process about four months ago. Didn't pursue that loan as we weren't able to travel to where we wanted to buy a house. Then about a month ago we went through the process again with Sun Trust and they didn't charge a penny for the preapproval.

 

[dvcgirl]

I just wanted to say that if I was you son, I'd be really, really sure to get a heck of deal on a house right now. While housing is definitely regional, we're just entering the beginning of the next leg down in housing prices. House prices are falling nationally again.

I'm not saying that I wouldn't necessarily buy, but it would only be if I stole the house.....and planned to stay in the home for at least 5-7 years.