Aug
10
10
we are pre approved and we went and signed a loan application on sat for a home we are interested in?
Renting & Real Estate
cdf0 asked:
what can go wrong from here? When we did the pre approval we submitted pay stubs bank statements and all that kind of stuff. We are waiting for the underwrietes to appraise it and run final loan.
Sphere: Related Contentwhat can go wrong from here? When we did the pre approval we submitted pay stubs bank statements and all that kind of stuff. We are waiting for the underwrietes to appraise it and run final loan.
Ask a Question
Tags: Bank Statements, Loan Application, Pay Stubs, Pre Approval, Pre Approved, Sat, Stuff
August 11th, 2008 at 10:25 pm
What can go wrong - everything? That is not a good thing to be focusing on. Instead focus on what should happen to make this deal close - the underwriter should get back to you in the next 21 days or so to tell you the loan will be funded, the inspections on the house should come back with no major defaults, the appraisal should be more than the offer, and the sellers should be willing to sell. With a week to closing, you should be getting the green light from everyone, and have a firm closing date set.
August 12th, 2008 at 4:35 pm
Well a number of things could go wrong, but it’s unlikely. HUGS! Now let’s think positive here, this is a new adventure and there is no reason to be worried about what can go wrong. As I’m sure you’ve heard all your life, if it were meant to be, it will be. And I believe that.
If you’ve worked with a Realtor, chances are they know the market values in the area you are buying in. And they would have told you if they thought the property wasn’t priced correctly. Now the appraiser could find issues and hold things up a bit, but it’s unlikely. Unless it’s something major, you already have a willing buyer and willing seller, so we just make sure the value is there based on condition.
It will all work out. You’ll see. HUGS FROM MINNESOTA
August 14th, 2008 at 2:46 pm
In legal terms you are not “pre-approved” until underwriters approve insuring you a home loan. You may have been “pre-qualified” which means it is a loan officer’s opinion from initial information and documents you can get a home loan.
Mortgage brokers or banks will not submit your information to a “lender’s” or bank’s underwriters unless, in the loan officer’s opinion, it appears the loan will work in establishing a home loan. Loan Officer’s are responsible to you, their client, to shop the best loan available, maybe offering a couple of options. They must explain how the loan works as well. Loan officers have available all requirements from all their “lenders” on loan structures and necessary “conditions” to be met.
It is the loan officer’s responsibility to request the “appraisal”, not the “underwriter”. “Appraisals” typically are not requested until it is certain a home loan, per underwriter, can be established to your satisfaction. “Appraisers” invoice the mortgage broker and is paid if they appraise regardless of the outcome of the loan.
Next step will be the “underwriters” recommendation of the type loan and, more than likely, will need additional “conditions” to be completed. “Conditions” could be anything, i.e., additional money down, additional documents, payoff of items on “credit report”, etc.
If there is any question or possible doubt to establish a home loan you can live with DO NOT put “Earnest Money” down on the home or you will lose it unless stated in the Real Estate contract otherwise.
What can go wrong, anything, but be more “positive”. I can assure you this, if this loan officer has been in the business awhile they already know the exact structure for you. Loan officer’s will use the “underwriter” at times to show a client loans they qualify when they already know. “Underwriters” normally review, request additional “conditions”, and recommend within 72 hours of submission by the loan officer. In other words, you signed Saturday, a loan “package” is submitted probably by Tuesday, and the 72 hours start when received by the lender’s underwriter.
You are excited and emotionally “set” on this home. You will do whatever necessary to “own” and that is what the seller, real estate agent, loan officer, lender, all want you to feel. Understand the loan’s structure and monthly payments. Payments will also include taxes, homeowner’s insurance, etc. “Closing costs” are negotiable between you and seller and your real estate agent does this. These costs are in the thousands of dollars. In addition to monthly payments furniture and general upkeep is necessary. Lawn care is extremely important to maintain value. It is estimated the average American home requires an additional $2,000 for general upkeep. DO NOT let your emotions make you “house poor”, this financial burden will ruin your marriage. Learn how to improve your status and work on it awhile.
Good Luck, stay positive.
Add A Comment