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Pre Qual Completed

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Anonymous
Not applicable

Re: Pre Qual Completed

I thought the same, but the letter she sent through email {pre qual letter} will suffice to put an offer on a house per my realtor.  I think I may stop the process right now and pay down my car and installment loans to lower DTI and re apply in a year.  Not sure yet if I want to continue on, the housing market is insane up here and it makes me nervous.

Message 11 of 20
flan
Regular Contributor

Re: Pre Qual Completed


@Anonymous wrote:
I hate to be the bearer of bad news. That pre-approval is not solid, not one bit. A true pre-approval will collect just about everything they need up front - pay stubs, tax returns (only two years is needed) bank statements, you name it.

I'd talk to the lender your realtor is recommending before doing anything else with this bank.

That depends a whole lot on the bank, the region, the loan officer, what he put on the application, whether that's accurate information, whether that's complete information, and what's in his credit file (not his scores, the actual contents.).   If he's provided accurate and complete information, and the loan officer is competent, there shouldn't be a problem when applies for the actual loan.  If he's not provided accurate and complete information, then he'll have problems.   If the loan officer doesn't understand the program the loan is in or doesn't bother to check things, there may be problems.  If it's a big box bank, there may be problems. 

 

My pre-approval was based on verbally providing the loan officer income and asset numbers, and a credit pull.  And because we've taken our time at the process, that was information that was a year out of date (both income and assets went up in the meantime) by the time we made an actual offer.  The conditions that came out of underwriting were trivial things, becuase underwriters have to have some condtions.  (We'd transfered money into the kid's 529, and they wanted to see statments for that.  and they wanted to be sure we had home owner's insurance on the place we're selling.)  We took 23 days from offer to clear to cose; much of that was a backlog at the appraisers and title company. 

Message 12 of 20
Anonymous
Not applicable

Re: Pre Qual Completed

I'm also in a competitive market place for homes. Houses are sold within 1-2 days after hitting the market.

I was told to better my chances of beating out my competition on a home, I would be better served with a pre-approval letter rather than just a pre-qualification letter. Having this letter will speed up the time it would take to close the deal and that could mean a lot to the seller. It may be the difference in buying a great home that you love.

Message 13 of 20
Anonymous
Not applicable

Re: Pre Qual Completed

What types of documents are needed at closing or for underwriting?  Do they require bank statements?  If so, how far back?  My credit was already pulled, I am sure they will do so again at the time fo closing.  Tax returns for the last 3 years?  Rent verification for the last 3 years?

Message 14 of 20
Anonymous
Not applicable

Re: Pre Qual Completed

2 years of tax returns and 2 months of bank statements. I don't believe they always verify rent payments but if they do it's 12 months worth.

Message 15 of 20
Anonymous
Not applicable

Re: Pre Qual Completed

Thanks for responding.  I think I am going to wait one year and reapply.  I may try and refi my car and lending club loan to help out my DTI and pay down said lending club loan, or should I do that since that would bring down average age of accounts?  Both lending club adn car loan are new so I suppose it would not affect it to much.  I also want to have all my credit cards near 0 so they cannot use that against my DTI (have about 2k out of 20k available to pay down).  My mid mortgage score was 710, maybe I can improve that as well but would that really matter?  I am glad I went through the process but I want to get more than 170k (does not get you much where I live) and now I know what I need to do that.  Thanks for ALL of the replies!

Message 16 of 20
Indycoltsfan
Regular Contributor

Re: Pre Qual Completed

Lending Club does report to all CBs....Smiley Wink  It may be delayed for some reason, but it will hit your reports at some point.  

Message 17 of 20
Anonymous
Not applicable

Re: Pre Qual Completed

Hi.  Whom did you recieve your down payment assistance grant from?

 

Message 18 of 20
Anonymous
Not applicable

Re: Pre Qual Completed

 
Message 19 of 20
iced
Valued Contributor

Re: Pre Qual Completed


@Anonymous wrote:

That seems low for your income. Do you have a lot of monthly debt payments?


That doesn't seem unreasonably low - 170k on 53k income is more than 3x. I was pre-qualified for 300k with over 200k income and a much lower DTI (multiple of less than 1.5x). The lender may be doing a more conservative pre-qual.

Message 20 of 20
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