any realtors or folks in the know, i got a question for ya.

armchair_warrior

okay whats up with realtors asking for a preapprove mortgage thing before taking bids or showing a place? i dont get it at all. cause i sure cant get a preapprove loan for even a car lol. its not that i cant buy a house or anything .

ana.log

I don't entirely understand your question but I'm going to try and answer it anyway.

Pre-approvals are encouraged because a seller of a property is not going to accept an offer from someone who will be unable to obtain a mortgage. Therefore, you are in a better position when you go to make a bid if you already have a pre-approval for a mortgage, and your offer is much more likely to be accepted.

armchair_warrior

ana.log wrote: I don't entirely understand your question but I'm going to try and answer it anyway.

Pre-approvals are encouraged because a seller of a property is not going to accept an offer from someone who will be unable to obtain a mortgage. Therefore, you are in a better position when you go to make a bid if you already have a pre-approval for a mortgage, and your offer is much more likely to be accepted.

yeah thats what i wanted to know . i cant ever get approve for a loan . blah! cause some places in the past wont show me unless i could get one of those. and well i can afford the house with loans from family and friends but not from the bank. i hate those things .

doctorj

yeah thats what i wanted to know . i cant ever get approve for a loan . blah!

Not even from one of those sub-prime loan sharks the banks run on the side? It doesn't have to be on some terms you'd ever want to use.

cause some places in the past wont show me unless i could get one of those. and well i can afford the house with loans from family and friends but not from the bank. i hate those things .

My fairly recent experience: everyone said I needed preapproval so I went and got it (on very little credit history), but no owner or broker or lawyer ever asked to see the documents, all the way through accepted bids and going into contract. You could say 'yes I have preapproval' and omit the part about the fact that it's from family and friends, and then you'd be able to go shopping... you could ask family and friends to write you a 'preapproval' letter rather than a bank so you could say it in good conscience; both would have about the same legal standing when it comes to actually getting the money, going into contract, etc., i.e. none.

armchair_warrior

doctorj wrote:

yeah thats what i wanted to know . i cant ever get approve for a loan . blah!

Not even from one of those sub-prime loan sharks the banks run on the side? It doesn't have to be on some terms you'd ever want to use.

cause some places in the past wont show me unless i could get one of those. and well i can afford the house with loans from family and friends but not from the bank. i hate those things .

My fairly recent experience: everyone said I needed preapproval so I went and got it (on very little credit history), but no owner or broker or lawyer ever asked to see the documents, all the way through accepted bids and going into contract. You could say 'yes I have preapproval' and omit the part about the fact that it's from family and friends, and then you'd be able to go shopping... you could ask family and friends to write you a 'preapproval' letter rather than a bank so you could say it in good conscience; both would have about the same legal standing when it comes to actually getting the money, going into contract, etc., i.e. none.

cool i never thought of it like that before . yay hehe, thanks. i wish i know this before i gotten my place. cause i couldnt get the pre-aproval thing lol to see some of the places.

now i can tell my friends this info cause some of them want to buy homes too and they cant get loans .

ana.log

doctorj wrote:

yeah thats what i wanted to know . i cant ever get approve for a loan . blah!

Not even from one of those sub-prime loan sharks the banks run on the side? It doesn't have to be on some terms you'd ever want to use.

cause some places in the past wont show me unless i could get one of those. and well i can afford the house with loans from family and friends but not from the bank. i hate those things .

My fairly recent experience: everyone said I needed preapproval so I went and got it (on very little credit history), but no owner or broker or lawyer ever asked to see the documents, all the way through accepted bids and going into contract. You could say 'yes I have preapproval' and omit the part about the fact that it's from family and friends, and then you'd be able to go shopping... you could ask family and friends to write you a 'preapproval' letter rather than a bank so you could say it in good conscience; both would have about the same legal standing when it comes to actually getting the money, going into contract, etc., i.e. none.

that seems very unusual to me, since as a buyer i have always been asked by both realtors and sellers about my pre-approval and as a seller, I have always asked to see the pre-approvals of potential buyers. but this is new york and, as i'm learning, every situation is unique.

ben

I once called up a mortgage broker to get a pre-approval and he asked me how much I wanted to borrow and for my fax number. Sure he inquired as to the state of my credit and general income but it didn't really matter. He faxed me some fancy looking certificate thing that said I was preapproved.

As someone else mentioned, this means nothing.

Once I did have the RE agent for the seller ask to speak with my mortgage guy once we went into contract which actually helped to keep the deal on track. It helped the seller know that everything was ok on my end and the agent was able to push all the parties towards a quicker closing.

whyfi

I'm a Loan Officer- yeah, the sellers just want to be sure that they're not wasting their time showing you their property... asking for the pre-approval is simply a way (hopefully!) to weed out those without the means of making the purchase and/or those that aren't very serious about purchasing. That being said, pre-approval letters really don't carry much weight- even if a lender does issue you a pre-approval, it's nothing binding. Some Loan Officers hand pre-approvals out to anybody and everybody... :roll:

If you'd like, I can take a look at some options for you. The bank that I represent isn't currently licensed in NY, so I'd only be giving you some free, knowledgeable advice. If things progress a little further, I can refer you to any number of friends with NY licensing. If you want to go it on your own, I would recommend that you work with someone locally- lending in the five boroughs is a little different beast than usual and you want someone with that experience.

whyfi

Oh, and for any that want to know-
If you want something binding and something that will really get a seller's attention, get a commitment letter from your lender. You'll usually have to fork over some funds (that will typically be applied towards closing costs) but it's well worth it if you're serious.

realtor guy

Subject: on point...

nybt wrote: Oh, and for any that want to know-
If you want something binding and something that will really get a seller's attention, get a commitment letter from your lender. You'll usually have to fork over some funds (that will typically be applied towards closing costs) but it's well worth it if you're serious.

talk about being late for the party... all the replies are totally on point...

-Mike

718.210.4052 direct
917.225.9603 cell
[email protected]

stacey

nybt wrote: Oh, and for any that want to know-
If you want something binding and something that will really get a seller's attention, get a commitment letter from your lender. You'll usually have to fork over some funds (that will typically be applied towards closing costs) but it's well worth it if you're serious.

I thought you only get a committment letter once you have a signed contract. Am I wrong?

realtor guy

Subject: committment letter

stacey wrote: [quote=nybt]Oh, and for any that want to know-
If you want something binding and something that will really get a seller's attention, get a commitment letter from your lender. You'll usually have to fork over some funds (that will typically be applied towards closing costs) but it's well worth it if you're serious.

I thought you only get a committment letter once you have a signed contract. Am I wrong?

actully you can and if you do have that when you submit your offer, you're more than golden... if you're working with a good mortgage broker, it'll be easy to get one.

-Mike

718.210.4052 direct
917.225.9603 cell
[email protected]

whyfi

Subject: Re: committment letter

realtor guy wrote: [quote=stacey][quote=nybt]Oh, and for any that want to know-
If you want something binding and something that will really get a seller's attention, get a commitment letter from your lender. You'll usually have to fork over some funds (that will typically be applied towards closing costs) but it's well worth it if you're serious.

I thought you only get a commitment letter once you have a signed contract. Am I wrong?

actully you can and if you do have that when you submit your offer, you're more than golden... if you're working with a good mortgage broker, it'll be easy to get one.

-Mike


718.210.4052 direct
917.225.9603 cell
[email protected]
Yup, I advise my clients to get one before they even start looking at houses- it's a great negotiation tool- it shows ability and intent.

Typically, commitment letters are good for short period- 14 days, 30 days- it will differ from lender to lender. After that, they are typically renewable, free of charge, and the lender may take the opportunity to verify that you didn't lose your job or that your credit didn't go in the shitter, etc. (don't you wish that your LO would say things like 'make sure your credit doesn't go in the shitter'?! ).

ben

a commitment letter is specific to a loan, it is your approval and says that the lender is going to lend you x dollars at y rate to buy z property. It is usually only good for a short period of time, 30 days or less, during which you need to sign and usually put down a deposit.

A pre-approval or pre-qualification is the letter they give you before you apply for a specfic property on specific terms. It is meant to give an idea of how much you could borrow based on your credit and income.

One is a pre-approval, the other is an actual approval.

whyfi

Ben wrote: a commitment letter is specific to a loan, it is your approval and says that the lender is going to lend you x dollars at y rate to buy z property. It is usually only good for a short period of time, 30 days or less, during which you need to sign and usually put down a deposit.

The dollar amount in the commitment letter is a maximum so anything under that amount (while still retaining the same LTV, DTI etc) is kosher. Rate can be locked or floated. You don't need a specific property but the property must fit the guidelines in the stipulations.

dan.h

I smell a loan officer war. To the death, then.

whyfi

dan.h wrote: I smell a loan officer war. To the death, then.

I was designated all of the NY Post purchase calls with my former employer- I'm comfy with my level of residential purchase knowledge. :twisted:

Now about those 40s...

dan.h

nybt wrote: [quote=dan.h]I smell a loan officer war. To the death, then.

I was designated all of the NY Post purchase calls with my former employer- I'm comfy with my level of residential purchase knowledge. :twisted:

Now about those 40s...
Name the time and place. Im down. Dude, were going to have a block party!! :shock: :twisted: