Do I need to tell me lender how much my down payment will be to get a pre-approval letter??

Question

Hi,

I am currently in the process of purchasing my first home. I am in the pre-approval process right now. One of the items my lender told me I would need to get a pre-approval letter is the amount of the down payment.... Is this true? Does she need that information to obtain a pre-approval letter?? Wont this work to her advantage in the end? Especially during the closing??? PLEASE HELP ASAP .. MY LENDER IS GOING TO BE CALLING ME SOON TO ASK ME FOR THE INFO!!! thanks! :)

Answer 1

Yes, your lender will have to know the amount of  your down payment, so they know how much money you will be financing.

Answer 2

Of course they would need to know that info to put together a pre-approval letter. The amount that you have as a down payment will affect your interest rates, what kinds of loans will be available.

You sound as if you are not sure of the process for getting a loan. That is okay, most people have an idea of how things work, and are confused by the complexity of it as they actually try to do it.

My suggestion is to find someone who is experienced with the process to guide you through it. Also, don't just get one pre-approval - get a couple (no more then 4 in a months period). This will allow you to be competitive so that you will know better whether you are getting a good rate.

Good luck

Answer 3

Well letting them know how much you are going to put for down payment will help them figure out what you can borrow and help start getting the loan put together on their end.

Answer 4

How much you have for a down payment affects what amount of loan you are eligible for, and maybe whether you will even get he loan or not, so yes, they need the info.  Give it to them.  How do you feel that will "work to her advantage"?

Answer 5

Of course.  Knowing how much you can put down on a house obviously affects the purchase amount you can be approved for.