Re Approve Your Approval

Real Estate Agent with CONLON/Christie's International Real Estate

It's Time To Re-Approve Your Pre-Approval


Get re-approved for your mortgageAs the federal home buyer tax credit nears its April 30 end-date, there's a lot of would-be home buyers still working to get under contract.

A piece of advice for all of them : If your pre-qualification and/or pre-approval letter is more than 8 weeks old, it would be prudent to have your lender "re-pre-approve" you.  Mortgage guidelines have been in flux and your original lender letter may now be invalid.

For example, over the past half-dozen months, the majority of mortgage lenders have reduced their risk tolerance with respect to:

  • Maximum debt-to-income ratios
  • Minimum allowable credit scores
  • Calculation of "assets in reserve"

For buyers of condominiums and co-ops, even the subject property itself is coming under tougher scrutiny.

Today's mortgage applicants need to be a complete package. It takes more than just good income and credit to get approved anymore and today's buyers should revisit their qualifications. What passed underwriting in January may not pass in May.

Being pro-active brings other advantages, too. If a mortgage re-pre-approval does unearth an issue, it'll be easier for every party to the transaction to address and correct it up-front versus trying to clean up a mess once a home's already under contract.

Talk to your agent and your loan officer about your pre-qualification/pre-approval letter before you bid on a home.


Posted by Michael LaFido on April 09, 2010 | Tags: Pre-Approval

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Paul Chavez
Earth Origins Realty - Albuquerque, NM
Albuquerque Realtor, NM EcoBroker, and General Contractor

Thanks for the advice.  I have a client who needs to get re-approved before, as it has been many, many months since she last spoke with a lender. 

Apr 09, 2010 02:54 AM #1
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

This is something I have been preaching for almost 2 years!  I have been in the mortgage business since 1987 and have seen a lot of changes over the years, but the most recent 2 years has our heads spinning... guidelines change, and that can be the difference between an an approval last week and a denial this week.  all the more reason to be working with a trusted lending partner!

Apr 09, 2010 03:04 AM #2
Michael LaFido
CONLON/Christie's International Real Estate - Chicago, IL
It's Not The Market, It's The Marketing!

Glad I could be of service!

Apr 12, 2010 02:29 AM #3
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Michael LaFido

It's Not The Market, It's The Marketing!
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