Mortgage pre-approval, is only one allowed?
Ogawa Shimizu
4 years ago
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Denita
4 years agolast modified: 4 years agoRelated Discussions
Ideas for Pre-Cooked Frozen Meals for my Elderly One-Armed MIL
Comments (23)Thank you so much for the ideas and support! It turns out she has two dorm-sized fridge/freezers (one has her TV on top and I didn't notice it, lol) so she has more storage space than I'd thought. She lives nearby so DH sees her often (stops on his way home from work) but is more than willing to stop by on his way to work with food at least once a week. So far I'm using Rubbermaid-type freezer containers, the same I've always sent home leftovers in, as she has her own dishes. DH's car just had some $$$ repairs so there's no money for buying separate dishes right now - DH says the food's more important than the presentation, and his mom is very practical. So far I've got 2 containers of pasta with beefed-up marinara, 2 meals of brisket with homemade baked beans and new potatoes and 2 bowls of from-scratch, from-fresh chicken soup. It's a start. I don't think the budget would allow it (gonna be a tight holiday season) but do you think she could possibly work a bread machine? I've never used one so have no idea how difficult they are to use. If she could operate it, I may suggest it to my SIL. I'm thinking a small electric skillet and/or a small toaster/convection oven might be useful, if she has the space (and if they would be permitted)....See MoreWho's to Blame for the Mortgage Mess? Banks, Not Homeowners
Comments (46)Berniek is right: Much of the blame here falls upon the shoulders of the politicians (led by then-President Clinton), who forced banks to begin some rather foolish lending practices. Alan Greenspan certainly did his share to push this concept of "everyone can borrow" during his time as Fed chairman. Between creative financing, no money down offers, and other such options, the government has given people plenty of rope with which to hang themselves. We Americans haven't proven ourselves to be particularly strong in the moderation and self-discipline categories over the last 30-40 years. Also, remember the climate that existed in the 90s, when I bought my first house: Spurred on by the soaring housing prices, people were convinced that buying "as much house as you can afford" was a good move. Housing was considered an investment that couldn't fail. Yes, the experts began preaching about "the housing bubble" long before it hit, but the masses couldn't grasp how this sure-thing could ever fall. And there's always been a (faulty) basic belief that "If I couldn't afford it, the bank wouldn't lend it to me." I fully agree with those who say that Real Estate agents will push buyers to their upper limits and beyond, and banks will lend what they can -- it's all about profits for them. Yet, the home owner DOES also bear the brunt of personal responsibility. After all, who cares most about whether I can afford my mortgage -- and still buy groceries and other things I need? Clearly, it's ME! I reap the rewards or punishments of my decisions, so I should do the math and know whether I can comfortably afford a house (or anything else) before I buy it. However, we've sort of left that thinking behind in today's buy-now-pay-later society. We're constantly told that "we deserve" this or that thing. That if we're going to finance it, we deserve to have exactly what we want. That "everyone" has debt. We've got to get past that....See MorePre-approval before a showing
Comments (12)Nosoccermom, you're probably fine if you can access your POF immediately (if you can find an agent who's willing to take your word that you can afford the homes they're opening up for you - not something I'm willing to do after the one "freebie" I allow for my listings). I recently had an offer come in not accompanied by a POF, the first counter (on a Monday) asked for POF with the counter. After many counters back and forth all week, we came to an agreement on Friday noon but they had scratched out the POF requirement ( the point is that they knew about it all week). Seller wouldn't sign, refused to take the house off the market without knowing whether the buyer had funds, so it had several (6-8) showings over the weekend before the buyer could produce POF on the following Tuesday morning. Had another higher offer come in before then, the seller would have taken it, so the buyer was in jeopardy for three days because they didn't have POF. Offers here are expected to have POF or pre-approval attached. All HomePath offers as well. Most or many people can at least print out a bank statement 24/7 to prevent something like this from happening. However, it will likely show your full cash worth and that may be something you don't want to show during negotiations. The bank can produce something that says "This person has at least $xxx (the amount of the offer, and not more) in assets with this bank". Pre-approvals take a bit longer. Buyers have to be prepared....See MoreWhen exactly do you apply to lenders for mortgage quotes?
Comments (17)^As the buyer, you get to choose your lender and the seller has no say. Having said that, if the lender has a bad reputation in the area, the seller is not obligated to accept your offer. Naturally, since you can pay cash, you can overcome this aspect. A pre-qualification without documentation to the lender is worthless. By documentation I mean whatever the lender needs to issue your loan (bank statements, W-2's, tax returns etc). Once you have provided all the documentation it really is a pre-approval. [If the buyer is risky they are better off going through the underwriting process right up front before looking for homes that way it is only subject to the property and appraisal.] Naturally you aren't in that boat at all worthy. The lender is obligated to provide to you a Loan Estimate that details the fees within 3 days of your loan application. This is typically done after you have a contract but right in the beginning of your loan processing. Ask the lender for a detailed loan worksheet prior to your offer so you can see the itemized expenses. Here is the loan estimate form and its constraints https://www.consumerfinance.gov/owning-a-home/loan-estimate/ Check various lenders. I have found the big box banks to be the worst now for originating mortgages except if you are getting a jumbo loan. The best sources are non-bank mortgage lenders - all they do is mortgage origination and funding all day long. IME they have the lowest rates and fees and perform quickly (30 day closing is normal, can close more quickly)....See MoreDenita
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4 years agolast modified: 4 years agoJudyG Designs
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