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Confused about WHEN to apply...

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MoreInfo1
Regular Contributor

Confused about WHEN to apply...

I will be a first time buyer and have been looking around at houses in neighborhoods, pricing and mortgage rates as well as reading all I can on what to do when buying a home for the first time. However, I'm still confused about the order of doing things, even with all I've read. So I'm wondering if someone would be able to share when each "step" is taken. For example, am I supposed to get a pre-approval and then hire a buyers agent to look at homes, then shop for a lender after putting in an offer? Am I supposed to get a buyers agent before the pre-approval? Would I have to find a house I want during the 45 days that the pre-approval is good for? Please help!

Message 1 of 7
6 REPLIES 6
StartingOver10
Moderator Emerita

Re: Confused about WHEN to apply...

Get your Realtor first, then get a pre-approval, shop for homes then officially apply.

 

Note, when you get your pre-approval you will supply all of your documentation to your lender at that time (pay stubs, tax returns, credit etc). If the LO doesn't ask for the documentation, run away - get another lender. A 'credit only' pre-approval is worthless for serious buyers.

 

Your Realtor ought to have at least a few good LO's to give you. Check with friends and family too.

Message 2 of 7
themizlyne
Regular Contributor

Re: Confused about WHEN to apply...

Go to a homebuyers course - a couple hours for excellent information. Should cover timelines, earnest money, typical closing costs, funny homebuying stories - like the seller who said the furnace worked fine and the inspector found the proposal for replacement of the nonworking furnace (with the seller's signature on it) behind it. Really rammed home the reason why home inspections can be so valuable. Lots of tips, lots of Q/A, ours was small and personalized. If you use dpa, you're required to attend here - I ended up not using it.
Message 3 of 7
CAnNY
Frequent Contributor

Re: Confused about WHEN to apply...

I personally, looked months at homes. When I was ready to move forward, I applied for the mortgage, got the pre-approval, reached out to the lenders preferred realtor to get cash back after I close. Then I looked again at houses, chose one, signed contract, did the inspection with radon. They wanted me to pay half of radon, we went our separate ways. I found an even better house the same day and started the contract stuff all over and hopefully only extended my close date by a few days.  I went from a difficult seller to an easy going one in a matter of hours. Lol


Starting Score: TU 489 EQ 561 EX unknown (2/24/2013)
Current Score: Lender Pull (11/15/13) EQ 702, TU 679, EX 684
Goal Score: 720


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Message 4 of 7
MoreInfo1
Regular Contributor

Re: Confused about WHEN to apply...

Thanks for the information everyone. Since it seems that pre-approvals only last for a certain period of time, would that mean I only have that amount of time to find a home and shop for a lender so that all the inquiries would only count as one?

 

I also read somewhere that some agents won't even start working with a potential buyer unless there is a pre-approval in hand- is this true?

 

Also, where would I find a place that has a course for first time buyers? I've never heard of this except with one of the loan type program that offers this where the course is mandatory to purchase the home. However, after looking at that program, it didn't seem appealing for me to go with that program.

Message 5 of 7
themizlyne
Regular Contributor

Re: Confused about WHEN to apply...

The preapproval is good for 90 days,. Sometimes agents will work with you without a preapproval but you can't put an offer in without one (unless you are a cash buyer :-) ). Here's how I did it. I took my myfico scores and credit report to the lender I wanted to use to see what needed to be fixed. I started looking at houses online and then looked up the addresses on my counties tax site (it shows sales, taxes, assessed values, flood plains, property maps including satellite views). I found a property that was perfect, but had to pay off one item before I could apply - it took about 3 weeks before I could track it down and pay it. By that time the perfect property had gone pending. In November, I found another property and looked at it with my agent, but it looked better in pictures than reality. The next property was just the opposite and I went back to the lender and got preapproved for asking price. We put in an offer and after some back and forth had a contract. Then inspection and repairs negotiation. Had to do a conference call to confirm that the one item was paid and provide bank statements, tax return, income verification, and copies of rent checks. Thursday the loan came back from the underwriter approved with conditions: appraisal, pest inspection, and water sample results. Appraisal was received Thursday afternoon and went to underwriter for NOV, pest report was sent Friday, and water results will be picked up Tuesday. Final walkthrough is Monday and closing is estimated to be Friday.

I hope this helps you understand the process.

If you post your county and state I will see if I can find a workshop in your area.
Message 6 of 7
MoreInfo1
Regular Contributor

Re: Confused about WHEN to apply...

Thanks Themizlyne! That actually helps a lot. I was also able to find a workshop around here too that I'll be attending at the end of the month.

 

 

Message 7 of 7
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