topic Re: Confused about mortgage approval process. in Mortgage Loans

Confused about mortgage approval process - UPDATE APPROVED!!

Anonymous — Thu, 12 Feb 2009 13:50:45 GMT

Okay...so I received a preapproval on January 28th or so. I did receive my GFE and all that jazz the next day.

I went through the entire deal sending over every detail of my life via fax machine. Was told my "package was sent to underwriting on Friday" and it could take up to 2 weeks to have a full commitment issued. What the heck does this mean? I don't have a house yet, I thought that the mortgage commitment was not issued until you were in contract? Am I missing something here? And if I am waiting for commitment then what's the point of preapproval? I am so confused.

Could this be because of my SE income?

Message Edited by UpUpUp on 02-12-2009 08:50 AM

Re: Confused about mortgage approval process.

Anonymous — Mon, 09 Feb 2009 20:39:12 GMT

What it means, IIRC, is that YOU are being pre-approved. What most people get is "pre-qualified," meaning, if "Document A" substantiates this, and "Document B" substantiates this, you **should** be good to go under final underwriting.

You're skipping those contingencies. Once that's done, all that's left is making sure the house appraises out and that the final loan amount is one that you can afford and/or live with.

This is a GOOD thing. This will mean that the ONLY thing you have to worry about (aside from random uglies like CAs popping up -- which is what had US on the edge of our seats -- or ugly utilization) will be how much the house you pick is worth vs the loan amount!

Congrats!!!

Re: Confused about mortgage approval process.

Anonymous — Mon, 09 Feb 2009 20:41:39 GMT

Sorry --- I think I misspoke. I don't think you're being "pre-approved" -- from what you've said, it sounds more like you're getting the whole enchilada: FULLY approved.

All that will be left will be making sure the house's value vs loan amount jibes.

You should REALLY, REALLY be awesome to go!!!

Re: Confused about mortgage approval process.

Anonymous — Mon, 09 Feb 2009 20:44:15 GMT

Ahh, now that was stated in terms I understand. Thank you! I gotcha now. So basically I'm getting all this garbage out of the way in advance? Aside of any CAs popping up (which I'll be more sorry for THEM if they try to pull that sh*t on me right now. LOL) or appraisal not coming in high enough, I should be good to go?

Re: Confused about mortgage approval process.

Anonymous — Mon, 09 Feb 2009 20:47:22 GMT

@Anonymous wrote:
Sorry --- I think I misspoke. I don't think you're being "pre-approved" -- from what you've said, it sounds more like you're getting the whole enchilada: FULLY approved.

All that will be left will be making sure the house's value vs loan amount jibes.

You should REALLY, REALLY be awesome to go!!!

Yeah, see this is why it's throwing me off. I totally get the difference between prequal and preapproved. I'm certain that my letter was a preapproval and it even went on to state why it was so much better to have a preapproval then just a prequal. Then I got the GFE...Then they asked me for the whole shabang...tax returns, bank statements, DL, SS card, blah, blah. After I sent all that, at the end of last week, they told me my package was being sent out and I should have my commitment in a week or two. I was like, huh? Commitment? Already? What? So, then I started doubting the process and getting all woozie like thinking now I can get denied. LOL.

Oye...this is the pitts. This mortgage stuff.

Re: Confused about mortgage approval process.

Anonymous — Mon, 09 Feb 2009 20:55:29 GMT

@Anonymous wrote:
@Anonymous wrote:
Sorry --- I think I misspoke. I don't think you're being "pre-approved" -- from what you've said, it sounds more like you're getting the whole enchilada: FULLY approved.

All that will be left will be making sure the house's value vs loan amount jibes.

You should REALLY, REALLY be awesome to go!!!

Yeah, see this is why it's throwing me off. I totally get the difference between prequal and preapproved. I'm certain that my letter was a preapproval and it even went on to state why it was so much better to have a preapproval then just a prequal. Then I got the GFE...Then they asked me for the whole shabang...tax returns, bank statements, DL, SS card, blah, blah. After I sent all that, at the end of last week, they told me my package was being sent out and I should have my commitment in a week or two. I was like, huh? Commitment? Already? What? So, then I started doubting the process and getting all woozie like thinking now I can get denied. LOL.

Oye...this is the pitts. This mortgage stuff.

Darlin' you say that NOW. Only because you're not in the position of finding a house you love, love, love and then having to stress over whether or not the lender will "like" you enough to consider giving you a loan. THEN, having to stress over whether or not they'll "like" the house you love!

Honestly, this way will be WAY less stress for you. Please, please, please trust me on this!!! You won't have the stress of "Am I? Or aren't I?" all while being harassed by your buyer's agent and/or seller's agent.

You'll be able to thrust that Commitment letter under your agent's nose/seller's nose and have the satisfaction of knowing that if there's a problem, it'll be because of the house (and therefore, not YOUR fault).

Enjoy!!!!

Re: Confused about mortgage approval process.

Anonymous — Mon, 09 Feb 2009 20:59:49 GMT

Oh, and at some point, either your agent or the seller/seller's agent will want to SEE that letter. If there's a dollar amount (like "UpUpUp is approved for a loan in the amount of $XXXK" ), do NOT give them that letter.

Ask instead for a letter stating that you have been approved for a mortgage loan equal to your offer. If you don't, you have NO leverage in negotiating your purchase price. After all, if YOU knew that Bob Buyer could afford $400K and only offered $300K on your house, you'd know you could up YOUR price, right?!

Re: Confused about mortgage approval process.

Anonymous — Mon, 09 Feb 2009 21:41:23 GMT

You are such a smart woman! Thank you so much for the reassurance. What you are saying makes so much sense. I guess having things go in this order would make it less stressful when I find a home and make an offer on it.

Also, GREAT point about the letter. My preapproval DID specify a loan amount, so I'll be sure NOT to provide that to seller/seller's agent! Smart Lady!! Thanks for that one!!

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 13:50:21 GMT

Got my commitment letter yesterday! They didn't scoff at my self-employment income. Everything went through, for my full preapproval amount!! Phew.

Additonal conditions:

X Acceptable Title Binder

X Satisfaction of Appraisal conditions

That's it!!!

OMG. Is this for real? I really can't believe it. 8 years ago I was staring at the walls of an empty 1 bedroom apartment I was sharing with my 3 year old son. I gave him the bedroom and I slept on a futon in the living room

I'm literally holding back the tears.

Re: Confused about mortgage approval process.

LisaJ — Thu, 12 Feb 2009 14:14:51 GMT

Up Up Up, I still have that sense of wonder every time I pull into the development that I used to drive by, wistfully thinking "some day...", and just knowing it was out of reach.

Patience, saving, and a lot of hard work, and now some day is TODAY. I am so happy for you!

Re: Confused about mortgage approval process - UPDATE APPROVED!!

musikklvr — Thu, 12 Feb 2009 14:23:52 GMT

That is WONDERFUL, Up!! Congrats.

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 15:02:33 GMT

@Anonymous wrote:

Got my commitment letter yesterday! They didn't scoff at my self-employment income. Everything went through, for my full preapproval amount!! Phew.

Additonal conditions:
X Acceptable Title Binder
X Satisfaction of Appraisal conditions

That's it!!!

Told you, Darlin'!! Now, all you have to worry about is finding your DREAM HOME!! And of course, what color to paint the walls (if you've been renting as long as I have, I **KNOW** you're excited about THAT!)!!!!

CONGRATS, Sweetie!! You've earned it, and then some!!!! You totally deserve it!!

I really don't know what makes me happier -- that we finally own our own home -- or that within a VERY short time, YOU will!!!

OMG. Is this for real?

Yup!! This is ALL YOU, Darlin'!! This is REAL because of YOU!! Don't you EVER forget that!!!
(that's supposed to be a "stern" face -- so's you feel cowed into NEVER forgetting that **YOU** DID IT!!)

I really can't believe it. 8 years ago I was staring at the walls of an empty 1 bedroom apartment I was sharing with my 3 year old son. I gave him the bedroom and I slept on a futon in the living room
I'm literally holding back the tears.

LOL! I did that, too, with my DD!! I **KNEW** there was a reason I adored the stuffins outta you! You put your baby first!!!

Seriously, honestly, truly -- CONGRATS!!! The most nerve-wracking bit of being a homeowner (other than actually *paying* the mortgage) is OVER. Now it's the funnest part -- choosing your DREAM HOME!!

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 17:37:31 GMT

Thank you guys so much. It really never ceases to amaze me how people from afar that don't even know each other real life can be so genuinely happy for one another. Though, I guess we really get to know one another through this proces, don't we?

I still can't believe it!! Wonderin, you betcha I'm ready to paint! It's been almost 15 years of renting. I'm DONE!!!

I'm shaky. My hands are shaky, my stomach is unsettled and I feel sort of sick. LOL. Ironically, it's not nerves, I'm not scared AT ALL...I'm just in utter shock. I can't explain it, but's a weird sensation.

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 17:45:09 GMT

@Anonymous wrote:
Thank you guys so much. It really never ceases to amaze me how people from afar that don't even know each other real life can be so genuinely happy for one another. Though, I guess we really get to know one another through this proces, don't we?

Its 'cause YOU'RE that wonderful of a person, Darlin'!

I still can't believe it!! Wonderin, you betcha I'm ready to paint! It's been almost 15 years of renting. I'm DONE!!!

Just remember to clean your brushes real good!

I'm going to sound like a TOTAL dork, but most paint companies have an applet on their site (or you can get a disc from a major-chain home improvement store) that lets you upload pics of your home with YOUR furniture and you can preview paint colors! We're doing that right now and it sure is making the picking process OODLES easier! You ought to think about it!

Now, we just have to stop being so damned lazy and buy the paint and actually PAINT!!

I'm shaky. My hands are shaky, my stomach is unsettled and I feel sort of sick. LOL. Ironically, it's not nerves, I'm not scared AT ALL...I'm just in utter shock. I can't explain it, but's a weird sensation.

Darlin', that's how ALL good things are *supposed* to feel!!

You've done Good, Darlin' ... pat yourself on the back! I'd do it for you, but you're facing the wrong way!

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 18:00:07 GMT

congrats ladies! i am praying i will get good news soon

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 18:19:23 GMT

@Anonymous wrote:
congrats ladies! i am praying i will get good news soon

You will. You HAVE to think positive. The funny thing is that I had already set up an appointment with a realtor to go look at homes this weekend. I set everything up and a few hours later I got the news. It's was really strange because I was told it would take 2 weeks and it took 3 business days! Just hang in there. Waiting is the hardest part, I was fortunate and let off the hook early. If it makes you feel better, I was 2 1/2 weeks over due with my son...and that was some long freakin' waiting....Hehe.

Wonderin, That is an AWESOME idea and SO up my alley. Any sites that you think are better than the others for the painting color pickin'?

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 18:42:00 GMT

UpUpUp wrote: Wonderin, That is an AWESOME idea and SO up my alley. Any sites that you think are better than the others for the painting color pickin'?

I'm using Pittsburgh Paint's applet -- but that's only because our DD's best friend's mother manages a PP store and is giving us 30% off!! (YAY!!)

PP even has a cutesy-pootsy (but REALLY fun) game to play to help you choose colors according to your personality and likes. And yannow ... it was SPOT on with us!! Try it!!

In the end, though, whatever applet you go with, whatever brand you choose, you can have that color made up in ANY brand. So if you use Behr's paint picker and find Sherwin Williams cheaper in your area (yes, that matters), you can have SW blend the paint to match Behr's.

Also, me, I'd haunt Better Homes and Gardens for a bit ... they have GREAT ideas on color combos -- and furniture redos to match your wall coloring and such. And don't forget your local newsstand -- I think I've bought every single home dec magazine known to man!! They're AWESOME for inspiration!

But best, best, best is to find your most fave object/piece of furniture/heirloom and match colors with that -- chances are, the rest of your stuff will go with it, too. And if it's your fave, it should be timeless in your home (meaning, you won't change your mind tomorrow and hate it!).

Another GREAT site is a blog by a friend of mine: she has AWESOME design sense and taste -- she's also a fabric designer, too! She's also got the MOST super-awesome links on her blog -- they all lead to great sites that mainly focus on interior dec.

Sorry -- I usually have more to blabber on about home dec ... I took home dec as part of my graphic design courses (don't ask -- I went for a LONG time having no freaking idea what I wanted to be when I grew up!)!

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 19:56:03 GMT

Don't be sorry. Awesome information and GREATLY appreciated!!

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 23:19:15 GMT

@Anonymous wrote:
UpUpUp wrote: Wonderin, That is an AWESOME idea and SO up my alley. Any sites that you think are better than the others for the painting color pickin'?

PP even has a cutesy-pootsy (but REALLY fun) game to play to help you choose colors according to your personality and likes. And yannow ... it was SPOT on with us!! Try it!!

Umm. THAT was fun. I am "White Spaces" and "Almond & Honey"

Re: Confused about mortgage approval process.

Anonymous — Thu, 12 Feb 2009 23:40:08 GMT

thanks! you were right. i cant beleive i got preapproved!!!!

oh yeah, i was 10 days late with my daughter. lol