Buying a house ...

[AGDLynn]

Try your Sister network!

If I ever move out of the Atl area, that's what I am going to do!

BTW, I was introduced to my current Realtor that is selling my house by a chapter sister that was an advisor with me. The current Realtor in the new area used to be neighbors of a pledge sister...who also sold her house for her!

[Benzgirl]

I work for a mortgage wholesaler and feel free to PM me with questions. We buy loans from over 2000 brokers in every state, so I can possibly give you some names.

First, pre-approvals are not worth the paper they are drawn on. Don't worry about it. If you want to spend $X for a house and your LO tells you that you can afford 25% more house....Run....fast.

I agree with those who tell you to check out a broker. They have multitudes of options available that some (many) banks can't offer. Be very careful when handing over information or fees upfront. Many brokers are scammers and you don't want to be subjected to ID theft. Ask friends and family members who they have used in the past, and what they liked/didn't like about them. Also, don't feel obligated to go with someone locally. If your brother/parent/friend in another state loved their Broker or LO, they can do a deal in you market.

Don't let your Real Estate agent steer you to a particular broker. They are getting a kick-back and not acting in your best interest

Don't always jump at the broker that can get you the lowest rate. There may be fees and points attached that they are not disclosing.

Since you are a first time homebuyer, check out any classes that local banks or brokers offer. They are well worth the time. You learn your options upfront so you can make an educated decision and not rely on what your LO tells you.

If you don't have 20% down, can you and your new home qualify for VA and FHA? Check it out because MI companies have all tightened their guidelines and they are tanking all kinds of deals that they previously did. If you qualify for VA, no question...do it!

Since you are in Georgia check out the state's Real Estate Fraud Prevention group: http://www.grefpac.org/ . I have attended a few of their meetings and they are probably the best organized group in the country.

[aggieAXO]

I am just curious as to why pre-approval status does not make a difference? When I sold my house my realtor only considered offers from those that were pre-approved.

[JennRN]

Yes, why does pre-approval not matter?? My husband and I are moving to WV from TX and we're going to buy a house. I am house hunting with a realtor next week, and was super stressed out that we haven't bothered to get pre-approved yet (my husband is commuting every week and is gone Mon-Fri). Do we NEED to? Or can we look seriously without it?

Also, what all documents do I need to get pre-approved? We're going to get one rate from our bank, but because there is no branch of our bank in WV, we have to do it over the phone with the national number!! Stress, stress.

Also! I was thinking that we should get a pre-approval/interest rate quote from our bank, and then another from a mortgage broker( for comparison sake). But, I assume they'll run our credit each time-and won't that hurt my score? It's really good right now, and I don't want to mess it up.

Wow, just from typing this now, my blood pressure has already gone up.

[ZTABullwinkle]

Wow. I am so glad someone asked for advice. As I commented in another thread, I am HATING house hunting right now with my fiance. We know we have made some mistakes. But I feel like we are getting back on track, and hopefully find the right house for us.

[bejazd]

Being pre-approved will save you from wasting your time looking at homes that are out of your price range.

The one year home warranty plans offered by sellers (an insurance policy) are nearly impossible to make a claim on. If there's something not working right at the inspection, have the seller fix it or reduce the asking price before you close.

[GeekyPenguin]

Has anyone bought a house without a realtor? My boyfriend is looking and I'm getting a lot of input since I'll be living there too but we cannot stand the realtors. Their contracts seem absurd to us AND a bunch of them try to force you into using their title company and their attorneys - we're attorneys! We don't need to pay for one! I'm just wondering if anybody has been successful doing it on their own.

[Benzgirl]

Originally Posted by aggieAXO

I am just curious as to why pre-approval status does not make a difference? When I sold my house my realtor only considered offers from those that were pre-approved.

It's a Realtor-thing. Many of them think they are wasting their time (remember Commission only) if their buyer is not pre-approved. Pre Approvals are NOT required to put in an offer.

I've known of many buyers to be pre-approved for hundreds of thousands more than they can really afford because the LO told them they could afford $XXX, when much less was more realistic. Often, these are the people who end up losing their houses when the market turns. Our Loss Mitigation Department hears so often, "well the lender pre-approved me for that much".

[Benzgirl]

Originally Posted by GeekyPenguin

Has anyone bought a house without a realtor? My boyfriend is looking and I'm getting a lot of input since I'll be living there too but we cannot stand the realtors. Their contracts seem absurd to us AND a bunch of them try to force you into using their title company and their attorneys - we're attorneys! We don't need to pay for one! I'm just wondering if anybody has been successful doing it on their own.

Yes. Get your own Real Estate attorney (unless you specialize in it) to facilitate the process.

[Benzgirl]

Originally Posted by JennRN

Yes, why does pre-approval not matter?? My husband and I are moving to WV from TX and we're going to buy a house. I am house hunting with a realtor next week, and was super stressed out that we haven't bothered to get pre-approved yet (my husband is commuting every week and is gone Mon-Fri). Do we NEED to? Or can we look seriously without it?

I have purchased 7 houses (I've always been single) and never was pre-approved. I didn't always go through the lending institution that I worked for. I only went to a familiar face when I needed to do some creative financing

Originally Posted by JennRN

Also, what all documents do I need to get pre-approved?

Depends on if they are doing a full pre-approval or a pre-qual. Sometimes lenders vary. At minimum, you will need 2 years W2s, 3 months bank statements, last paychecks. If you own a business, you will need 2 years Tax Returns with all schedules. If someone is contributing to your down payment or closing costs, bring a Gift Letter. If you are selling a house, bring a copy of the listing. If you recently sold a house, bring the HUD-1 from the sale. If you are having your closing costs paid by an employer, have the HR department list what they will cover.

Originally Posted by JennRN

Also! I was thinking that we should get a pre-approval/interest rate quote from our bank, and then another from a mortgage broker( for comparison sake). But, I assume they'll run our credit each time-and won't that hurt my score? It's really good right now, and I don't want to mess it up.

Interest Rate quote? Not sure what you mean. Until you have a sales contract in your hand, lenders can't lock in your interest rate. Running a credit report WILL, I repeat WILL hurt your credit score. Every time a lender does an inquiry, your score will drop. How much depends on what your original score is.

[Tom Earp]

As the Fed drops rates, it seems to do little for housing rates and my banker says stay put.

80% at 6.25 and 20% at 10.025.

I own a whole duplex, both sides, 2 bed room that I live in and the other side is 3 bedroom. Both have a 1 car garage, 1-1/2 baths and family room with a fire place.

It was split and I have no clue why but it does become a pain in the rear!

Right now may be a price game for property, but the interst rates are not doing anyone a favor.

[aggieAXO]

Originally Posted by Benzgirl

It's a Realtor-thing. Many of them think they are wasting their time (remember Commission only) if their buyer is not pre-approved. Pre Approvals are NOT required to put in an offer.

I've known of many buyers to be pre-approved for hundreds of thousands more than they can really afford because the LO told them they could afford $XXX, when much less was more realistic. Often, these are the people who end up losing their houses when the market turns. Our Loss Mitigation Department hears so often, "well the lender pre-approved me for that much".

I was able to lock into an interest rate before I bought my house. This was in 2003 so maybe things have changed? Real estate was moving really fast here in Austin at the time so if you were not pre approved it was less likely that your offer would be taken seriously or even at all. When I put my house on the market I sold it within 24 hours-I would not have even considered a buyer that was not pre-approved. Things have definitely slowed down though.

[justabeachbrat]

Please be realistic. If your income doesn't add up for the home, don't try it and save. I am saying this because I will be packing after moving into a condo owned by my roommate. Her loan wasn't on a fixed rate, gambled on things going well, and her business caved in, so the condo goes, too. Her chaos isn't something she bothered to mention before I moved in. The place went on the market this week. If you can't afford it without involving others as far as bringing in roommates, wait.

[Benzgirl]

Originally Posted by aggieAXO

I was able to lock into an interest rate before I bought my house. This was in 2003 so maybe things have changed?

Yes, everything has changed. We use to have a "lock and shop" program, which allowed you to lock in your rate without a property. However, the broker (wholesalers don't deal directly with the borrowers) would be penalized if they didn't produce a loan within 90 days. Typically, these rates were not great since the hedge on a 90-day lock is much riskier than a 30-day lock.

We discontinued the program before the market went south because pull-through was so low and we were losing money on the hedge. Often, borrowers just can't find a house (or make up their minds) in a particular timeframe.

[JennRN]

Update- I flew to West Virginia last week, and the husband and I house hunted for a day. We were not pre-approved at that time, but did it the next day. We found a house we loved! We started the bidding on it last week, and just found out this morning that we got it!!