Question by Question Girl PA: If you prequalify for a mortgage and submit an offer on a home, can you change the type of loan?
We prequalified for a mortgage with one lender for a 30 yr fixed rate FHA DSHA loan, now we found out our home qualifies for a 203k DSHA FHA loan (30 yr fixed rate). our offer was already submitted and we are waiting to hear back from the seller. Is it legal for us to switch to a lender qualified to issue this loan, our current lender does not have access to the state funds set aside for the 203k loan option.
Main reason for reconsideration of funding option is a lower % rate.
Current loan option: 4.125%
203k loan option: 3.49%
Best answer:
Answer by KL
Sure…a pre-qual doesn’t mean a thing. If the lender you are working with doesn’t offer the 203k loan, switch.
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