cancel
Showing results for 
Search instead for 
Did you mean: 

PREAPPROVED!

tag
Anonymous
Not applicable

PREAPPROVED!

Tentative time line

 

1. I would like to start the 1st time homebuyers program (hang on to $4,000 cash reserves). I’m not sure how this would affect my search for homes right now. 

 

2. Moving to a month to month will increase my rent from $995–> $1195. This I was aware of but I wasn’t expecting to lose my deposit if I choose this route.

My last lease payment will be on 7/1/20 and I need to be out by 7/31/20. I’m willing to eat July’s rent, because it will be basically refunded by my deposit, plus I get paid 3x in May (1st,15th, and 29th).

With these dates in consideration, it seems beneficial in a financial sense for my loan to close June 15th-ish. Worse case I would eat July rent, effectively offset by the refunded deposit.

 

 

Closing mid June gives me vested time security if the deal falls through for an unbeknownst reason; allowing up to another 46 days until I HAVE to be out. This means round two would need to be 2-weeks or less of searching, and a speedy close. 

Timing is everything 

 

Am I making the right move by not putting any offers with earnest money until mid April?

Message 1 of 4
3 REPLIES 3
donkort
Valued Contributor

Re: PREAPPROVED!

I guess it would depend on the mortgage company.  I've known some underwriting to take quite a long time----like three months.  And, with interest rates declining, there might be many people applying for homes all at once.  

 

I'm sure others will chime in.

 

Congratulations on your pre-approval. 

 

If you have any more questions, there will be people here to answer them. 

FICO 8: EQ 810; TU 816; EX 822 as of 7/5/2022
Message 2 of 4
CreditInspired
Community Leader
Super Contributor

Re: PREAPPROVED!


@Anonymous wrote:

Tentative time line

 

1. I would like to start the 1st time homebuyers program (hang on to $4,000 cash reserves). I’m not sure how this would affect my search for homes right now. 

 

2. Moving to a month to month will increase my rent from $995–> $1195. This I was aware of but I wasn’t expecting to lose my deposit if I choose this route.

My last lease payment will be on 7/1/20 and I need to be out by 7/31/20. I’m willing to eat July’s rent, because it will be basically refunded by my deposit, plus I get paid 3x in May (1st,15th, and 29th).

With these dates in consideration, it seems beneficial in a financial sense for my loan to close June 15th-ish. Worse case I would eat July rent, effectively offset by the refunded deposit.

 

 

Closing mid June gives me vested time security if the deal falls through for an unbeknownst reason; allowing up to another 46 days until I HAVE to be out. This means round two would need to be 2-weeks or less of searching, and a speedy close. 

Timing is everything 

 

Am I making the right move by not putting any offers with earnest money until mid April?


Hi and welcome to myFICO

 

I would start searching for homes right now instead of waiting for April. As Donkort said, "with the very low interest rates, lenders are now bombarded with mortgage and refinance applications." Even with this, it still could take months to move through the process--not like the usual 6-8 weeks.


Depending on your scores, credit history, and hopefully no credit-related problems that need to be squared away, there can still be other unforeseen hippcups. Then there's the appraisal, the home inspection, the survey, etc. 

 

So IMO, I suggest starting the process now. Get the ball rolling--preapproval, find a Realtor, and start searching for homes. If you find a home quickly, you can always request a later closing date. So, if your lease ends June 30, request a closing date for June 25. If the Seller feels that's too far out, you can request an earlier closing date of May 30. This way, you're on the hook for only June's rent. This works great too. Because no matter what date you close (if late in the month), your "first" mortgage payment wont be due until 30+ days out. Example: close May 25 (first mortgage pymt due July 1); close June 25 (first mortgage pymt due Aug 1).


So, this definitely gives you much breathing room and without having to go month-to-month (paying an extra $200) and still getting your security deposit back. WIN WIN. 

GL2U, and congrats on your dream of home ownership. 


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 3 of 4
coreyb80
Super Contributor

Re: PREAPPROVED!


@CreditInspired wrote:

@Anonymous wrote:

Tentative time line

 

1. I would like to start the 1st time homebuyers program (hang on to $4,000 cash reserves). I’m not sure how this would affect my search for homes right now. 

 

2. Moving to a month to month will increase my rent from $995–> $1195. This I was aware of but I wasn’t expecting to lose my deposit if I choose this route.

My last lease payment will be on 7/1/20 and I need to be out by 7/31/20. I’m willing to eat July’s rent, because it will be basically refunded by my deposit, plus I get paid 3x in May (1st,15th, and 29th).

With these dates in consideration, it seems beneficial in a financial sense for my loan to close June 15th-ish. Worse case I would eat July rent, effectively offset by the refunded deposit.

 

 

Closing mid June gives me vested time security if the deal falls through for an unbeknownst reason; allowing up to another 46 days until I HAVE to be out. This means round two would need to be 2-weeks or less of searching, and a speedy close. 

Timing is everything 

 

Am I making the right move by not putting any offers with earnest money until mid April?


Hi and welcome to myFICO

 

I would start searching for homes right now instead of waiting for April. As Donkort said, "with the very low interest rates, lenders are now bombarded with mortgage and refinance applications." Even with this, it still could take months to move through the process--not like the usual 6-8 weeks.


Depending on your scores, credit history, and hopefully no credit-related problems that need to be squared away, there can still be other unforeseen hippcups. Then there's the appraisal, the home inspection, the survey, etc. 

 

So IMO, I suggest starting the process now. Get the ball rolling--preapproval, find a Realtor, and start searching for homes. If you find a home quickly, you can always request a later closing date. So, if your lease ends June 30, request a closing date for June 25. If the Seller feels that's too far out, you can request an earlier closing date of May 30. This way, you're on the hook for only June's rent. This works great too. Because no matter what date you close (if late in the month), your "first" mortgage payment wont be due until 30+ days out. Example: close May 25 (first mortgage pymt due July 1); close June 25 (first mortgage pymt due Aug 1).


So, this definitely gives you much breathing room and without having to go month-to-month (paying an extra $200) and still getting your security deposit back. WIN WIN. 

GL2U, and congrats on your dream of home ownership. 


You just provided me with some good info. I didn't know you could request a specific closing.  I'm currently searching and looking to close Mid May as well.

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.