Does anyone happen to know the answer to any of these?
I know, I know, talk to a mortgage broker (we will!)... but just curious right now if anyone has a general idea!
- If we apply for preapproval, do we have to tell them how much we want to borrow, or will they tell us what the maximum amount we are approved for is?
- How long is that preapproval good for? Will we have a few months to shop around after being preapproved, or do we need to hurry up and make an offer right away?
- Do we tell them the $-amount of a downpayment we want to make when we apply (as opposed to a percentage)?
Thank you!
libby2595
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Re: a couple questions about mortgage pre-approval
this is to the best of my knowledge and what i've just gone through
*you need to ask for how much you want... at this point i would suggest you ask for more than you think you can afford or want to spend... gives you a better 'ball park' IN MY OPINION.
*they are 'normally' good for 90 days. but if you expire, at least you know what you can 'afford'.
*you give them the $amount you have for a down-payment... that will, specifically, be one of the questions in the application.
hope that helps.
fm me if you want to vent about the home-buying process... i'm living it now!!!
Kara and Todd
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Re: a couple questions about mortgage pre-approval
Thank you!
If we ask for more than they'll approve us for, will they make us a lower offer, or just reject us?
libby2595
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Re: a couple questions about mortgage pre-approval
from what i understand, they'll just let you know what they are willing to lend.
we asked for the 'very top' of our budget, and got it. we didn't like the monthly payments, so we knew we needed to buy a house that was LESS than our max to be able to make the montly payments.
rkl1130
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Re: a couple questions about mortgage pre-approval
As far as I know, they mortgage place will tell you how much they are willing to lend.
trinap3440
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Re: a couple questions about mortgage pre-approval
Please also remember that in the world of mortgages, pre-approvals are important, but do not guarantee that things won't change with your mortgage. We had our mortgage completely changed on us two weeks before closing even though we were way under what our pre-approval was for. The underwriting stage is the worst!
As for pre-approvals themselves, ours expired in 90 days. We just kept renewing it because we got preapproved way before we found a house.
Hope this helps! Feel free to FM me. I closed on my house in Sep 06 - so all of this is still fresh in my mind!
Good luck!
Kara and Todd
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Re: a couple questions about mortgage pre-approval
Thank you all! I may be FMing you with questions later on today... if I can finish this assignment for work soon!
ewickens
Posted:
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Re: a couple questions about mortgage pre-approval
Posted by Kara and Todd
Does anyone happen to know the answer to any of these?
I know, I know, talk to a mortgage broker (we will!)... but just curious right now if anyone has a general idea!
- If we apply for preapproval, do we have to tell them how much we want to borrow, or will they tell us what the maximum amount we are approved for is?
- How long is that preapproval good for? Will we have a few months to shop around after being preapproved, or do we need to hurry up and make an offer right away?
- Do we tell them the $-amount of a downpayment we want to make when we apply (as opposed to a percentage)?
Thank you!
1. When you are pre-approved by a bank (for instance), they will tell you how expensive the homes you can look at can be, along with the taxes. This way you know how expensive you can look and afford. They will tell you what the best house price will be for you depending on how much you want to stretch yourselves.
2. My pre-approval w/HSBC was good for 120 days. After that point, all we would have to do is provide another copy of our pay stubs to extend it another 120 days. We got pre-approved in late October and we didn't activate our loan until December when we locked in our interest rate and went into contract. You don't pay the fee for HSBC until your lock in the interest rate and it was $300. Don't feel rushed at all to find a house - you have plenty of time!
3. Yes, when you get pre-approved, let them know what you're willing to put down on the house - 10% or any dollar amount. This way when you make a bid on a house, you can ask the banker/mortgage broker to include this in your pre-approval letter that every seller of a house wants to see.
If you have any questions, feel free to FM me. I just bought a house in Jan, and we couldn't be happier with HSBC and everything they did for us.
OR join LIF and post these questions on the home board - those girls are a saving grace to new homeowners with their wealth of information!
Julybride08
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Re: a couple questions about mortgage pre-approval
Dose anyone know about how much closing cost are?
trinap3440
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Re: a couple questions about mortgage pre-approval
My closing costs were about 3% of the total purchase price.
My advice - do not use CitiMortgage - they were horrible!
Julybride08
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Member since
Re: a couple questions about mortgage pre-approval
I know some banks have no closing cost. Like north fork. I saw they had a sign there were none. But are there closing cost for the lawyers? But each lawyer would be different?
LaurenluvsTJ
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Member since
Re: a couple questions about mortgage pre-approval
Posted by Julybride08
Dose anyone know about how much closing cost are?
closing costs are typically between 3%-6% of the selling price.
chatxleau24
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Member since
Re: a couple questions about mortgage pre-approval
I used to process mortgages. Pre-approvals mean nothing. I used to write them up based upon credit scores - as long as it was above 500 it was okay. Pre-approvals don't guarantee a mortgage or do anything other than make the seller of a house a little more confident that you MIGHT be able to get a loan and that your bid MIGHT be worthwhile.
Kara and Todd
Posted:
Member since
Re: a couple questions about mortgage pre-approval
Posted by Julybride08
I know some banks have no closing cost. Like north fork. I saw they had a sign there were none. But are there closing cost for the lawyers? But each lawyer would be different?
Lawyers don't get a percentage of the sale. You work out your fee arrangement with them ahead of time. Usually, real estate lawyers charge a flat fee, but they sometimes charge by the hour. What the fee is depends on the lawyer.
libby2595
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Member since
Re: a couple questions about mortgage pre-approval
Posted by Julybride08
I know some banks have no closing cost. Like north fork. I saw they had a sign there were none. But are there closing cost for the lawyers? But each lawyer would be different?
lawyer fees are different. you're going to want a lawyer to look over the 'sale' contract for you. this will be the ONLY person who will be looking out for you. this price will vary.
oh, and you want a lawyer who ONLY works with real estate!
eta: here i am repeating what other girls here told me only a few weeks ago it all comes full circle.
chatxleau24
Posted:
Member since
Re: a couple questions about mortgage pre-approval
Posted by LaurenluvsTJ
Posted by Julybride08
Dose anyone know about how much closing cost are?
closing costs are typically between 3%-6% of the selling price.
FYI It's worth having closing costs and 'paying points' to a loan officer. If they offer no closing costs or no pionts - then theyre getting paid by the bank to give you a higher rate than you deserve. Look out for YSP - yield spread - even though you wont be paying it out of pocket - if you see it on the side (small writing) then you know that the loan officer is making money on the back end from the bank - and that they are giving you a higher mtg rate. When I was working in the field, a loan officer could make 1% of the total loan by giving their customer 1/2% higher rate!!
ewickens
Posted:
Member since
Re: a couple questions about mortgage pre-approval
Posted by Julybride08
Dose anyone know about how much closing cost are?
Mine were around $12K and no points.
The lawyer you hire will go thru all the costs - NYS mortgage tax, lawyer fee, title fee, title insurance, deed registration, etc
