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Frequent Contributor
fuzzybean
Posts: 305
Registered: ‎04-04-2012
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Mid Scores...

My mid score was 715 and hubby's was 723.  We're officially looking for a house!  The pre-qualification seemed painless enough, but we were told the pre-approval comes AFTER we choose a home.  Does that sound right?

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StartingOver10
Posts: 3,960
Registered: ‎03-06-2010
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Re: Mid Scores...


fuzzybean wrote:

My mid score was 715 and hubby's was 723.  We're officially looking for a house!  The pre-qualification seemed painless enough, but we were told the pre-approval comes AFTER we choose a home.  Does that sound right?


No. Find another lender. In order to submit an offer you have to have your pre-approval or the offer won't be considered (this is rule #1 in our area).

Some loan officers want to use the actual taxes and insurance of the subject property, but how are you supposed to find that property and make an offer without having the pre-approval? The LO can use a realistic figure for your taxes, insurance and HOA (if applicable).

 

Fuzzybean, are you using a broker? That's the kind of response that comes from non-funding mortgage brokers or newb LO's. Are you going conventional or FHA?

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fuzzybean
Posts: 305
Registered: ‎04-04-2012
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Re: Mid Scores...


StartingOver10 wrote:

fuzzybean wrote:

My mid score was 715 and hubby's was 723.  We're officially looking for a house!  The pre-qualification seemed painless enough, but we were told the pre-approval comes AFTER we choose a home.  Does that sound right?


No. Find another lender. In order to submit an offer you have to have your pre-approval or the offer won't be considered (this is rule #1 in our area).

Some loan officers want to use the actual taxes and insurance of the subject property, but how are you supposed to find that property and make an offer without having the pre-approval? The LO can use a realistic figure for your taxes, insurance and HOA (if applicable).

 

Fuzzybean, are you using a broker? That's the kind of response that comes from non-funding mortgage brokers or newb LO's. Are you going conventional or FHA?


See, that's what I thought, too!  We started with our bank.  I'm not sure if we'll go conventional or FHA, but probably FHA.

 

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fuzzybean
Posts: 305
Registered: ‎04-04-2012
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Re: Mid Scores...

I worry about what rates we'll get.  I don't trust anyone anymore!  I have to make an offer and have it accepted before I can lock in a rate, right?  What if the rate is too high?  Am I stuck with it?

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: Mid Scores...


fuzzybean wrote:

I worry about what rates we'll get.  I don't trust anyone anymore!  I have to make an offer and have it accepted before I can lock in a rate, right?  What if the rate is too high?  Am I stuck with it?


You should look at a conventional mortgage, as your scores are more than adequate to qualify, and the FHA loan is a more expensive option...  conventional is going to be your best bet!  you can do them with as little as 3% down


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fuzzybean
Posts: 305
Registered: ‎04-04-2012
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Re: Mid Scores...


webhopper wrote:

fuzzybean wrote:

I worry about what rates we'll get.  I don't trust anyone anymore!  I have to make an offer and have it accepted before I can lock in a rate, right?  What if the rate is too high?  Am I stuck with it?


You should look at a conventional mortgage, as your scores are more than adequate to qualify, and the FHA loan is a more expensive option...  conventional is going to be your best bet!  you can do them with as little as 3% down


We both have a BK that was discharged 12/07 and there is a foreclosure on hubby's CR (from same situation).  Would that disqualify us from a conventional mortgage? 

 

I'm sick of this stuff already and we just started.  I'm not sure where to turn or where to look now? 

 

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fuzzybean
Posts: 305
Registered: ‎04-04-2012
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Re: Mid Scores...

One more question...

 

My midscore is 715 and hubby's is 723.  Would it be better to just put the mortgage in his name?

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fuzzybean
Posts: 305
Registered: ‎04-04-2012
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Re: Mid Scores...

Here's what the loan officer emailed me back when I told him we wanted a pre-approval letter, not a pre-qualification letter.

 

"Under the local realtor association guidelines a preapproval is when you have applied for a loan. Under current mortgage rules you cannot apply for a mortgage without having a contract on a property. That is why I complete the mortgage page of the purchase contract.  It lets the seller’s agent know you have been approved by a computerized mortgage system which is as strong an approval as we can do at this time.

 

As for the loan amount when you are ready to make an offer please call me with the offer amount, the annual taxes and the homeowner association fees if any and I will do an approval for exactly that amount.  That way you are not presenting a letter for $250,000 on a $225,000 offer."

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: Mid Scores...


fuzzybean wrote:

Here's what the loan officer emailed me back when I told him we wanted a pre-approval letter, not a pre-qualification letter.

 

"Under the local realtor association guidelines a preapproval is when you have applied for a loan. Under current mortgage rules you cannot apply for a mortgage without having a contract on a property. That is why I complete the mortgage page of the purchase contract.  It lets the seller’s agent know you have been approved by a computerized mortgage system which is as strong an approval as we can do at this time.

 

As for the loan amount when you are ready to make an offer please call me with the offer amount, the annual taxes and the homeowner association fees if any and I will do an approval for exactly that amount.  That way you are not presenting a letter for $250,000 on a $225,000 offer."



She is pulling your leg about the "current mortgage rules"
Agree that you don't want to put a letter with a $250k approval.  I had approval letters for up to 243k...  I only wanted to pay a maximum amount of 175k... so I called the lender and asked them to revise the letter for me to indicate that I was approved for 175k
 

Starting Score: 08/29/2011 TU 671 EQ 674
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fuzzybean
Posts: 305
Registered: ‎04-04-2012
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Re: Mid Scores...

OK, that makes sense on the amount.

 

What about the rest of his email.  Does that sound right?

 

Also, what if we choose to build?  How does that work?


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