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

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!

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.

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.

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.

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]

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]

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.

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

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: