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brandy11
LIF Infant
Member since 5/07 164 total posts
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When Shopping For A Home
Why do people look at homes that say are priced over $500,000 and after looking for quite awhile decide to buy one. They go for final mortgage and they can only qualify for $350,000 - $400,000 ??? I am confused shouldn't they know this before they start looking ?
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Posted 1/27/08 9:16 AM  |
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Prudential Douglas Elliman Real Estate
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: When Shopping For A Home
yes they should know, but just as some seellers are still expecting to get 2005 prices for their homes, some buyers are still expecting to get loans they don't deserve like in 2005. everything has changed.
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| Posted 1/27/08 9:35 AM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: When Shopping For A Home
I'm a big planner by nature so I really can't relate to that. We knew exactly how much we could afford before we saw the first house.
I really don't understand allowing those kinds of impulses on the purchase of the most expensive thing you'll ever buy in your lifetime! Completely irresponsible, in my opinion.
They say there is a buyer for every house, right? Maybe the worst houses are the ones that get the unprepared, impulsive buyers. :shrug:
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| Posted 1/27/08 10:29 AM |
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brandy11
LIF Infant
Member since 5/07 164 total posts
Name:
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Re: When Shopping For A Home
I would love to agree with you, but that doesn't seem to be the case when talking to other sellers. A builder with a brand new home said the same thing. This kind of thing just ties up the home.
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| Posted 1/27/08 10:44 AM |
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laurabora
LIF Adult
Member since 4/07 2712 total posts
Name:
Laura
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Re: When Shopping For A Home
I think I remember that you're doing FSBO...did you ask them for a preapproval letter when they submit their offer?
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| Posted 1/27/08 10:51 AM |
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brandy11
LIF Infant
Member since 5/07 164 total posts
Name:
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Re: When Shopping For A Home
Absolutely !!! It seems to be when they go back to actually get the mortgage than they find out different. Seems to happen alot here when talking to sellers that also have their homes up for sale even with real estate agent homes listed on MLS.
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| Posted 1/27/08 11:03 AM |
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greenfreak
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Member since 9/06 11483 total posts
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greenfreak
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Re: When Shopping For A Home
Posted by brandy11
I would love to agree with you, but that doesn't seem to be the case when talking to other sellers. A builder with a brand new home said the same thing. This kind of thing just ties up the home.
Exactly. And they can't afford the brand new houses because they're looking in a range probably 50-100k more than they can reasonably afford. 
I was half joking about that, that's why I said "maybe". In my personal experience, it was nice to dream about the 550k houses. We could get the mortgage approval for one but would never be able to afford that right now. So we compromised and we still have a house that we love and is perfect for us. 
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| Posted 1/27/08 11:13 AM |
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laurabora
LIF Adult
Member since 4/07 2712 total posts
Name:
Laura
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Re: When Shopping For A Home
Posted by brandy11
Absolutely !!! It seems to be when they go back to actually get the mortgage than they find out different. Seems to happen alot here when talking to sellers that also have their homes up for sale even with real estate agent homes listed on MLS.
Ugh. What a waste of everyone's time! Sorry you are having to deal with this.
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| Posted 1/27/08 11:16 AM |
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NinaLemon
It's a boy!!!
Member since 10/07 6453 total posts
Name:
Jeannine
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Re: When Shopping For A Home
Posted by brandy11
Absolutely !!! It seems to be when they go back to actually get the mortgage than they find out different. Seems to happen alot here when talking to sellers that also have their homes up for sale even with real estate agent homes listed on MLS.
How are they getting pre-approval letters if they do not qualify for the loan? I agree people should have a good idea what they can afford before going into buying a home, but this sounds more like a broker issue than a buyer issue.
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| Posted 1/27/08 12:02 PM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: When Shopping For A Home
Posted by NinaLemon
How are they getting pre-approval letters if they do not qualify for the loan?
Think of it like a pre-approval for a credit card. It's not based on real factors. The real test is later, after your credit reports are run, etc.
The first pre-approval we got was after a few questions over the phone which I could easily have lied about. Not to mention, they don't take into account what you can actually afford with your other monthly bills. Only what you qualify for - how much money they would be willing to give you.
Message edited 1/27/2008 1:43:24 PM.
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| Posted 1/27/08 1:43 PM |
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NinaLemon
It's a boy!!!
Member since 10/07 6453 total posts
Name:
Jeannine
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Re: When Shopping For A Home
The lender we used pulled our credit for the pre-apporval letter, it's unfortunate that that isn't standard practice. 
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| Posted 1/27/08 2:38 PM |
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brandy11
LIF Infant
Member since 5/07 164 total posts
Name:
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Re: When Shopping For A Home
I want to thank everyone for their input. I never take offence to anyone's opinion. I always think their maybe a simple answer that I am Missing. Just as home prices are a mystery, so it seems getting a correct mortgage qualification is also a mystery. In both cases I sure wish standard practices would be used. More and more I hear their is no rhyme or reason. What do you think ?
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| Posted 1/28/08 9:18 AM |
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