Made a offer on Friday Update - Offer accepted.

[oldman425]

We viewed a home that my wife loved and we made an offer.  We offered over the asking price and allowed everything the seller was asking for.  Fast forward to tonight we find out that the seller is not comfortable with our pre-approval from NFCU.  Their issue is that the verbage of the letter from the bank called it a pre-qalification instead of a pre-approval.  We know it's a pre-approval because our LO told as as soon as we get into a contract it will go to underwriting. 

Our agent went ahead and sent over a pre-approval letter from another lender to hopefully make the seller feel more confidant.  We are pretty nervous because they had an open house today and have another scheduled for Sunday.  Sure does stink trying to buy a home in a super hot sellers market.

Just heard from our agent the the seller agreed and signed the counter offer.

[Anonymous]

Had the same issue the other day with my pre approval through Guaranteed Rate. Ended up walking away and building our own

[oldman425]

Seller had zero offers from yesterday's open house, not sure about today's.  My agent hopes to get a counter or acceptance tonight or Monday.

[Anonymous]

My NFCU LO told me that they underwrite on the front end of the process. So they pretty much verify everything before they go down the road with you.. This is what my LO told me, not sure if it's true or not. My loan is in the processing stage right now and it goes into underwriting after that. Not really sure why since they underwrite upfront???

[oldman425]

Oh it gets better.....

Currenly our offer is the only offer on the table, the two days of open house brought zero offers.  My agent called the listing agent to see what was up and she had some story of having bad experiences dealing with NFCU and wanted us to contact a lender she knows to get a pre-approval, keep in mind we already have two.  We told our agent absolutely not, there is no reason why we should when we have a valid approval and we will not change lenders because a listing agent has a axe to grind against NFCU.  So apparently the listing agent is calling our LO in the morning to see if our offer is legit or not. 

More to follow, I'm sure.

[Anonymous]

The listing agent calling the LO to verify the letter is pretty standard practice in my region, southern california. I can't imagine it would be different elsewhere.

[Calidreaming]

Good luck with getting your offer accepted oldman!  We are buying in a super hot seller's market in our town in GA, so I feel your pain.  If the house hasn't received any offers other than yours in this type of market the seller should know there must be some sort of issue either with price or something else.  I can't beleive they're being so picky and if they don't accept I bet they'll end up having to accept a much lower offer than yours.

We had a similar issue with a seller's agent on a property we felt was overpriced.  We had submitted prequal letters both from NFCU and another local lender.   We ended up not putting in an offer because of the nitpicking and the house, which had already sat for over two weeks, sat on the market for another month.  Houses in our area in our price range usually go within 3 days if they're well priced and often in less than 24 hours.  I bet if you stand firm they will come around.  In our case, I wasn't really in love with the house to begin with.

[oldman425]

We are suppose from them today, our fingers are crossed.  Thanks for your input, if they don't accept today we will be pulling our offer.

[oldman425]

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@Anonymous wrote:

The listing agent calling the LO to verify the letter is pretty standard practice in my region, southern california. I can't imagine it would be different elsewhere.

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I have no problem with their agent calling our LO.  The way NFCU does things is a little strange in my book, they issue the pre approval letter after we have a signed contract.  So what I thought was a pre-approval was just a re-qual after all.  Ugh. 

[Anonymous]

I'm sorry you are having difficulty with them, I had an excellent experience with them once I got an unnamed loan processor switched to a better one (who was amazing!!).

What they are suppose to do is first issue you a pre-approval, can take up to a week to process since they pass it through a quick underwriting process looking for big red flags. Note that they do not have access to your tax transcripts at this point, so I wouldn't think of it as passing some huge underwriting hurdle. Once you have an accepted offer, they will then issue you a letter of commitment within about 17 to 21 days, which is the strongest promise they can make you short of issuing funds. They will not issue a letter of comittment without an offer, the letter is tied to a home. If your offer falls through, you will need to reapply for a brand new loan (I know from experience!). They do not do pre-qualifications from what I heard, you wouldn't even need to submit credit scores for something that weak. Good luck!