Mortgage Pre-approval
Here is a stupid question, I am trying get a pre-approval letter from a mortgage company to work with a realtor to purchase some REO property and the mortgage company (which I found through Lending Tree) tells me that I am approved and guarantees me a mortgage, but to get a pre-approval letter I must pay them $295 by credit card and if the mortgage is closed with them, they will apply it towards my closing. I never heard of pre-approval processing fee before. Is this normal? This comes from American Residential Mortgage...if anyone worked with them before.
Thanks. 
More and more realrors and mortgage companies are trying to get money up fron so you don't jump ship.
My opinion would be find a local broker who represents a lot of lenders. Having a local partner is far better - especially when you go to do your next deal....he'll know your credit history etc.
Kevin