Priority Buyer Pre Approved???

[wally101]

So I went in and got pre approved, or at least pre pre approved. I went to Wells Fargo and did the automated FHA pre approval. My middle FICO score is 718. It was just a short online form and my credit was pulled and then I went in to meet with the LO the next day. I was pre approved for $175,000. And then got all the break downs on closing costs, Ins, principal, interest ect. One showed my cost if I pay closing and the other showed costs if seller paid closing. All credit cards are down to less than $500.00, which took several years, so now I just have to save up about 12,0000 or so.

1. My questions is how accurate is this pre approval? I realise I will need to show bank statements, tax returns, pay stubs ect for the underwriting process.

2. How often are sellers willing to pay closing? Or if I find a place for around $170K do you offer $175 and they pay? Is that how it works...The 12K I plan on saving will allow for some new furnishings, two months of mortgage in the bank, but this is with seller paying closing.

Thanks for you help. I'm pretty excited...

[JM-AM]

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@wally101 wrote:

So I went in and got pre approved, or at least pre pre approved. I went to Wells Fargo and did the automated FHA pre approval. My middle FICO score is 718. It was just a short online form and my credit was pulled and then I went in to meet with the LO the next day. I was pre approved for $175,000. And then got all the break downs on closing costs, Ins, principal, interest ect. One showed my cost if I pay closing and the other showed costs if seller paid closing. All credit cards are down to less than $500.00, which took several years, so now I just have to save up about 12,0000 or so.

1. My questions is how accurate is this pre approval? I realise I will need to show bank statements, tax returns, pay stubs ect for the underwriting process.

2. How often are sellers willing to pay closing? Or if I find a place for around $170K do you offer $175 and they pay? Is that how it works...The 12K I plan on saving will allow for some new furnishings, two months of mortgage in the bank, but this is with seller paying closing.

Thanks for you help. I'm pretty excited...

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If you answered all questions honestly the pre-approval should go smoothly for a quick closing.

Most sellers today are paying some if not all closing cost. If you find a home for 170K just curious as to why you would want to offer 175K? If it is for the closing cost they can usually be put into your loan if the seller is not willing to pay them.

Generally they want to see a few months of savings in your banking accounts but is not always a requirement. These savings do not have to include savings for furniture. 

Congrats on your pre-approval and good luck

[boomhower]

Good Luck!

I am closing with Wells on my first mortgage next week.  They have been great to deal with.  I have a local branch in town but am working with a loan officer that iis several hours away based on the recommendation of my realtor.  That was good advise, she has been wonderful.  What they gave me with my preapproval was spot on with very little difference in the end docs.

FHA doesn't require any reserves and your vested 401 can be used as well.

As mentioned above most sellers are paying towards closing cost.  Unfortunately for me mine is paying $0 but the property was priced at the bottom of the market and the seller was bank.  

If you come up with any questions about Wells process fire away.

[payingoffdebt001]

My daughter was approved through Wells Fargo, originally she had another lender but also ended up seeing what Wells Fargo had to offer her. They had a lessor interest rate and didnt require all that the other lender needed.  It was a breeze for her.

[wally101]

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@JM-AM wrote:

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@wally101 wrote:

So I went in and got pre approved, or at least pre pre approved. I went to Wells Fargo and did the automated FHA pre approval. My middle FICO score is 718. It was just a short online form and my credit was pulled and then I went in to meet with the LO the next day. I was pre approved for $175,000. And then got all the break downs on closing costs, Ins, principal, interest ect. One showed my cost if I pay closing and the other showed costs if seller paid closing. All credit cards are down to less than $500.00, which took several years, so now I just have to save up about 12,0000 or so.

1. My questions is how accurate is this pre approval? I realise I will need to show bank statements, tax returns, pay stubs ect for the underwriting process.

2. How often are sellers willing to pay closing? Or if I find a place for around $170K do you offer $175 and they pay? Is that how it works...The 12K I plan on saving will allow for some new furnishings, two months of mortgage in the bank, but this is with seller paying closing.

Thanks for you help. I'm pretty excited...

---

If you answered all questions honestly the pre-approval should go smoothly for a quick closing.

Most sellers today are paying some if not all closing cost. If you find a home for 170K just curious as to why you would want to offer 175K? If it is for the closing cost they can usually be put into your loan if the seller is not willing to pay them.

Generally they want to see a few months of savings in your banking accounts but is not always a requirement. These savings do not have to include savings for furniture. 

Congrats on your pre-approval and good luck

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Thanks. Yes I answered everything honestly, glad to hear it should go smoothly. And yes I would want the closing cost added to the loan. As far as the 2 months mortgage in the bank, that is for me to feel comfortable. I don't want to be completely broke after closing. So I plan on having a lil cusion to pay for furniture and Murphy's Law.... And thanks, it's a good feeling getting approved.

[wally101]

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@boomhower wrote:

Good Luck!

I am closing with Wells on my first mortgage next week.  They have been great to deal with.  I have a local branch in town but am working with a loan officer that iis several hours away based on the recommendation of my realtor.  That was good advise, she has been wonderful.  What they gave me with my preapproval was spot on with very little difference in the end docs.

FHA doesn't require any reserves and your vested 401 can be used as well.

As mentioned above most sellers are paying towards closing cost.  Unfortunately for me mine is paying $0 but the property was priced at the bottom of the market and the seller was bank.  

If you come up with any questions about Wells process fire away.

Thanks... Congrats on your new home. And yes the LO has been very helpful and answers all my questions in a timely manner. The reserves are for me to feel comfortable after closing, I want a lil money in the bank when all is said and done. And if any questions come up I will ask, thanks. It's always nice having another set of eyes and ears to lend a helping hand.

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[wally101]

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@payingoffdebt001 wrote:

My daughter was approved through Wells Fargo, originally she had another lender but also ended up seeing what Wells Fargo had to offer her. They had a lessor interest rate and didnt require all that the other lender needed.  It was a breeze for her.

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Yes, so far WF has been nice to work with. Rates and costs seem very competitive. Good to hear things went well for her.

[roshan]

Quick question:

I talk eot my WF loan officer and he said over the phone after knowing my all histroy of income and debt that i will be fine for preapproval from them without any issue.

But he recommand me to wait until i find a home which i want to buy for Pre-Approval. He said we can do official pre approval based on that home price so it can help you in negociating price with seller.

So do you think i should just wait till i find home or just go ahead and get  Priority Buyer Pre Approval?

[wally101]

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@roshan wrote:

Quick question:

I talk eot my WF loan officer and he said over the phone after knowing my all histroy of income and debt that i will be fine for preapproval from them without any issue.

But he recommand me to wait until i find a home which i want to buy for Pre-Approval. He said we can do official pre approval based on that home price so it can help you in negociating price with seller.

So do you think i should just wait till i find home or just go ahead and get  Priority Buyer Pre Approval?

Well, I'm no expert. But I wanted to know if I was approved or not and wanted a break down of costs so I know what I can afford. I have had only 1 inquiry from almost two years ago, so I wasn't worried about a ding on my credit. They will pull your credit and it will be a hard inquiry. So if you have had more than a couple  within the last two years, you may want to wait. With the priority pre approval I can now shop with my realator knowing exactly what I can and can no afford. The credit report they pull is a FICO score so you will know what middle score you have. I don't know anything about your situation...have you pulled your own credit? Are you ready to buy now with closing costs and down payment ready? I am still about several months out before I will have the cash I need, but I know exactly what I'm up against. Good luck to you.

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[Booner72]

Dont let inquiry dings prevent you from getting the info you need to know where you stand in the mortgage preapproval process.  The inquiry ding is small (I've had tons from house, car, credit cards in the last year and never once, not ever never ever, did I get any point loss that I could see via SW alerts).

Especially inquiries from lenders - those are understandable and easily explanable to banks.

I am not advocating to get inquiry dings for anything OTHER than the house loan during this process.

Good Luck!