Why does Fannie Mae require a lender’s pre-qualification statement before negotiating a home purchase offer?
Fannie Mae wants to be sure that prospective buyers will be able to complete the sales transaction, including obtaining financing when needed. Pre-qualification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range. A loan pre-qualification doesn’t mean your loan is approved. You must apply for a loan separately, after you are pre-qualified and your purchase offer is accepted. Some of my lenders allow a TBD (To Be Determined) Address approvals. Therefore, you may not need a home in contract before you can apply.
Related Questions
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- Why does Fannie Mae request a lenders prequalification statement before negotiating a home purchase offer?
