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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: can i get good house vibes?
The approval letter should be sufficient, really, there is no reason for them to know your credit. How rude of them to ask! Have your realtor tell them your credit was good enough for you to be approved for _____ (fill in the blank of what you were approved for).
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Posted 4/24/09 9:36 AM  |
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Pumpkin1
LIF Adult
Member since 12/05 3715 total posts
Name:
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Re: can i get good house vibes?
I can understand the down payment and loan amount questions. The sellers get the DP, not the bank. Also, the more money put down, the better chances the loan will be approved. However, the credit score question is unnecessary.
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| Posted 4/24/09 9:38 AM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: can i get good house vibes?
dude, in the span of a few days you went from HATING house hunting to having bids on TWO houses you LOVE...life is crazy isn't it!!!!!
in answer to your other q's I really think the pre approval letter should be sufficient...but I guess they are nervous about your funding pulling out.
is there one you like a little more? just out of curiosity?
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| Posted 4/24/09 12:40 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: can i get good house vibes?
Posted by Ophelia
dude, in the span of a few days you went from HATING house hunting to having bids on TWO houses you LOVE...life is crazy isn't it!!!!!
in answer to your other q's I really think the pre approval letter should be sufficient...but I guess they are nervous about your funding pulling out.
is there one you like a little more? just out of curiosity?
i know it's too funny 
i don't mind giving my credit score if necessary - DH's is just okay but mine is very good. but i just don't think it's necessary.
we like them both equally, for different reasons, and will be happy either way.
although if we had to pick we would be merging the two houses together 
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| Posted 4/24/09 12:44 PM |
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TheLorax
LOVE
Member since 2/06 5581 total posts
Name:
Suzanne / SuzBride
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Re: can i get good house vibes?
Posted by headoverheels
Posted by Karen
Posted by Erica
I can see them asking that information in a seller's market...but unless they have another bid, it seems strange (except for the preapproval)
maybe they have another bid? or they are just nervous that it won't go through?
I agree with this. If they have competing offers, I think in this market they would go with the people putting the most $$ down.
Since you're putting only 3.5% down, the odds say you are less likely to get approved for a mortgage than say someone putting 15-20% down. You are also most likely to walk away since you are not putting that much down.
see this doesn't make sense to me - if we already got pre-approved, that means we qualified for the mortgage. it's not like the seller is getting our DP, the bank is. so it should not matter what we are putting down.
i totally understand why they might be cautious, but a pre-approval letter on letterhead should really be all they need to accept an offer.
and janine i agree with you, we are only putting down the amount we offered.
I believe the preapproval still needs a supporting appraisal. You cannot get a mortgage that is greater than the appraisal value, so if another potential buyer was going to put down more, the amount the house needed to appraise for would be less (for the mortgage to be approved).
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| Posted 4/24/09 12:47 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: can i get good house vibes?
Posted by TheLorax
Posted by headoverheels
Posted by Karen
Posted by Erica
I can see them asking that information in a seller's market...but unless they have another bid, it seems strange (except for the preapproval)
maybe they have another bid? or they are just nervous that it won't go through?
I agree with this. If they have competing offers, I think in this market they would go with the people putting the most $$ down.
Since you're putting only 3.5% down, the odds say you are less likely to get approved for a mortgage than say someone putting 15-20% down. You are also most likely to walk away since you are not putting that much down.
see this doesn't make sense to me - if we already got pre-approved, that means we qualified for the mortgage. it's not like the seller is getting our DP, the bank is. so it should not matter what we are putting down.
i totally understand why they might be cautious, but a pre-approval letter on letterhead should really be all they need to accept an offer.
and janine i agree with you, we are only putting down the amount we offered.
I believe the preapproval still needs a supporting appraisal. You cannot get a mortgage that is greater than the appraisal value, so if another potential buyer was going to put down more, the amount the house needed to appraise for would be less (for the mortgage to be approved).
okay, i see. thanks 
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| Posted 4/24/09 3:11 PM |
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puppylove
LIF Adolescent
Member since 10/05 561 total posts
Name:
Summer
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Re: can i get good house vibes?
Good Luck!!!! 
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| Posted 4/24/09 3:36 PM |
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Elbee
Zanzibar
Member since 5/05 10767 total posts
Name:
Me
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Re: can i get good house vibes?
There is so much more that goes into getting a mortgage versus getting pre-approval.
Once you find a house & get an approved bid and have a signed contract - the banks will then scrutinize everything.
1. Like someone mentioned above - appraisal. The house must appraise for the mortgage amount or more. Banks will not loan you more than a house appraises for. In addition, I think on March 1st, it became mandatory that outside appraisors need to be brought in. The bank/broker used to be able to hire their own appraisor and could pretty much make sure the house appraised for what they wanted it to be. Obviously if the house was really off from what you bid, then no amount of begging could get the appraisal to match - but within reason many brokers had their hooks in appraisors. We had our appraisal done February 26th and my broker was thrilled she didn't have to go to an independent firm (although in the end my house appraised for $20k more than I purchased it for).
2. Getting pre-approval takes like 10 minutes. They check your credit scores, your income and your overall debt. Once you go for an actual mortgage there are D-to-I ratio's that will take into account how much of your income will go towards your mortgage (front ratio) and how much is left over for everything else (back ratio) .... I believe banks are willing to allow you to have a back ratio of 50%, but I believe PMI companies just changed their requirements (again in March) from 45% to 41% back ratio. I am not sure what FHA requires.
Here's the WIKI explainations: http://en.wikipedia.org/wiki/Debt-to-income_ratio
3. When sellers look at bids, someone will a higher downpayment needs less of a mortgage. Less mortgage is easier to get than more mortgage. If you put 20% down you do not have to go through the PMI process. If you have to have PMI, that is yet another party to have to deal with KWIM? An all cash deal is most wanted because there are no other parties involved, less headaches.
The sellers really just want to make sure you are in good standing and have the ability to buy the house and not waste their time. Unfortunately in this market, a LOT of people are not getting mortgages as easy as it was 2 years ago.
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| Posted 4/24/09 3:42 PM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: can i get good house vibes?
thanks for that info... i guess i am just confused why a lending co. would pre-approve someone for a mortgage and then not give it to them, KWIM? but i guess there are a lot of other factors that go into it, like you stated. thanks
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| Posted 4/24/09 3:57 PM |
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Rycois
Blessed with 2blue/2pink
Member since 12/05 13341 total posts
Name:
J
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Re: can i get good house vibes?
Posted by headoverheels
thanks for that info... i guess i am just confused why a lending co. would pre-approve someone for a mortgage and then not give it to them, KWIM? but i guess there are a lot of other factors that go into it, like you stated. thanks
I think it's a lot of "in principle you look good but let's see when the time comes"
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| Posted 4/24/09 4:00 PM |
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ThreeCats
Train Ride
Member since 5/05 3127 total posts
Name:
A
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Re: can i get good house vibes?
good luck....
fyi: i have no idea what my agent asks the people who put in an offer. i'm just saying don't get upset with the sellers, it might just be their agent trying to protect them.
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| Posted 4/24/09 9:03 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: can i get good house vibes?
Posted by headoverheels
DH saw a house today that he loved. i am going to see it this afternoon and then we will probably make an offer. 
UPDATE 4/23:
okay can someone tell me if this is normal????
i saw the house and loved it. but DH and love another one too. REA says to put in offers for both homes so we do.
REA calls us back (this is NOT our normal REA, she is out of town until Sunday) and tells us that the homeowners for house #1 want to know what we are putting down as a DP, what our credit scores are, and how much we got pre-approved for.
okay i TOTALLY get wanting to see a pre-approval letter before accepting an offer, even tentatively. but why do they want to know our credit scores? and why does it matter how much we are putting down.
for the record, we are putting down 3.5% because we are getting and FHA loan and the REA made it sounds like that was a bad thing, and it is making the current homeowners more cautious.
m i missing something important here?
When you fill out a binder or offer form it will have your downpayment info on it. That is something that is always told when making an offer. If for example someone was going in and putting 20% down and everything else about their offer was similar that offer may be more desirable to the seller. Better chance of being approved for mortgage, etc. The sellers are probably just looking for that info because pre-approval letters are usually vague and not terribly reliable
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| Posted 4/24/09 10:57 PM |
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Agape08
LIF Adolescent
Member since 10/08 807 total posts
Name:
Kathy
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Re: can i get good house vibes?
Sellers tend to do that...our seller's attorney actually called our banker to ask about our assets!!!!! I was so annoyed when I heard this b/c we put almost 50% down butttt then I found out she had the house on the market for 1 year and 3 other mortgages didn't go through at the last minute so it made sense. I guess they are just trying not to waste anymore time than they have to and want to protect their own interests. I wouldn't take it personal if I were you.... good luck!
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| Posted 4/25/09 11:42 AM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: can i get good house vibes?
Many homeowners want to know this, they are afraid if you really can't afford it or it may fall through. We answered many of those ? when we bought our home and the market is very different now so sellers want to know they aren't wasting their time.
Message edited 4/25/2009 6:51:15 PM.
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| Posted 4/25/09 6:50 PM |
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