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. confused

Comments(1)

  • kae5716th December, 2003

    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

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