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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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How much can you push pre-qualification?
We found a house that we LOVE, but its definitely above our price range. We don't have an official "pre-approval" because my Agent dosen't do pre-approval until we're putting in an offer, be we are pre-qualified. This house would be maybe $20-$25k above that amount.
I still feel like we should be able to handle the payments but it would definitely be tighter. The taxes are relatively low so that helps and interest rates have been pretty good lately so we have that in our favor as well.
Has anyone else had a similar experience that they can share?
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Posted 3/22/11 10:30 AM  |
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Prudential Douglas Elliman Real Estate
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: How much can you push pre-qualification?
What amount did they use in your pre qual for taxes. How much lower are they a month? I suggest going for the preapproval ASAP so you know exactly what you can qualify for. Only you know what you can afford!
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| Posted 3/22/11 10:36 AM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: How much can you push pre-qualification?
They're about $1k less. I guess I should call the mortgage broker. I'm waiting to hear back from my agent about comps and what a fair offer would be. We'll see. I'm not getting my hopes up too high, but it would definitely be nice.
I think once all of our bills are paid (including cell phone, insurance and estimated utilities) we would have about $500-$1000 left for saving/spending. Definitely a little tighter than I would like but that would really only be until the end of the year.
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| Posted 3/22/11 10:41 AM |
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Re: How much can you push pre-qualification?
I would go get a pre-approval ASAP
It's really to your disadvantage to not have one at this point
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| Posted 3/22/11 11:03 AM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: How much can you push pre-qualification?
Posted by Beth EXIT Realty
I would go get a pre-approval ASAP
It's really to your disadvantage to not have one at this point
From what I was told, its more of a strategy than anything else. I'll get the pre-approval for the amount we're offering
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| Posted 3/22/11 11:12 AM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: How much can you push pre-qualification?
jess, if you need someone for a quick pre-qual, i have your girl 
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| Posted 3/22/11 11:30 AM |
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Re: How much can you push pre-qualification?
Are you saying that your agent recommended you NOT get preapproved for strategy reasons? I really don't understand that. What strategic advantage could there be to delaying a preapproval?
I like to have my customers get a preapproval letter asap. That way, no one wastes any time (including you) looking at houses that are way above their price range. And also, sometimes buyers don't realize how much they can afford and what the monthly payments would be, so they look at houses.
Most importantly, if you find a house you want to make an offer on, you NEED to have a preapproval in hand. No seller is going to take your offer seriously if you can't show you can afford the house. And no good agent would want to risk their own credibility by presenting an offer from buyers who may not be financially qualified.
To me, a prequal is meaningless.
When thinking about what you can afford and your personal comfort level, keep in mind that you will need to pay the property taxes, homeowner's insurance, utilities, possibly pmi (depending on your loan type and down payment amt), and all upkeep and maintenance on the house. You should sit down with a loan officer and get counseled on all of this.
If you need some recommendations for a good mortgage person, let me know!
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| Posted 3/22/11 12:06 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: How much can you push pre-qualification?
Posted by Century 21 Dallow - Christine Braun
Are you saying that your agent recommended you NOT get preapproved for strategy reasons? I really don't understand that. What strategic advantage could there be to delaying a preapproval?
I like to have my customers get a preapproval letter asap. That way, no one wastes any time (including you) looking at houses that are way above their price range. And also, sometimes buyers don't realize how much they can afford and what the monthly payments would be, so they look at houses.
Most importantly, if you find a house you want to make an offer on, you NEED to have a preapproval in hand. No seller is going to take your offer seriously if you can't show you can afford the house. And no good agent would want to risk their own credibility by presenting an offer from buyers who may not be financially qualified.
To me, a prequal is meaningless.
When thinking about what you can afford and your personal comfort level, keep in mind that you will need to pay the property taxes, homeowner's insurance, utilities, possibly pmi (depending on your loan type and down payment amt), and all upkeep and maintenance on the house. You should sit down with a loan officer and get counseled on all of this.
If you need some recommendations for a good mortgage person, let me know!
This was all done already- I just don't have the letter in hand. When he explained it to me, it made sense. Basically if we come in and offer X dollars, but the preapproval shows we can afford up to Y dollars, then what incentive does the seller have to keep it to around my original offer?
We've been over all of our finances with a broker, but that's what kind of worried me. I know a pre-qual isn't the same as pre-approval so that's why I'm definitely a little apprehensive about thinking anywhere above what he called our "comfort zone". I don't know if that was for our own personal benefit or if that truly is what we will be approved up to.
I think I just need to give them a call. Thanks for all the input.
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| Posted 3/22/11 1:18 PM |
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Re: How much can you push pre-qualification?
Posted by Belongs2DanBuckley
Posted by Century 21 Dallow - Christine Braun
Are you saying that your agent recommended you NOT get preapproved for strategy reasons? I really don't understand that. What strategic advantage could there be to delaying a preapproval?
I like to have my customers get a preapproval letter asap. That way, no one wastes any time (including you) looking at houses that are way above their price range. And also, sometimes buyers don't realize how much they can afford and what the monthly payments would be, so they look at houses.
Most importantly, if you find a house you want to make an offer on, you NEED to have a preapproval in hand. No seller is going to take your offer seriously if you can't show you can afford the house. And no good agent would want to risk their own credibility by presenting an offer from buyers who may not be financially qualified.
To me, a prequal is meaningless.
When thinking about what you can afford and your personal comfort level, keep in mind that you will need to pay the property taxes, homeowner's insurance, utilities, possibly pmi (depending on your loan type and down payment amt), and all upkeep and maintenance on the house. You should sit down with a loan officer and get counseled on all of this.
If you need some recommendations for a good mortgage person, let me know!
This was all done already- I just don't have the letter in hand. When he explained it to me, it made sense. Basically if we come in and offer X dollars, but the preapproval shows we can afford up to Y dollars, then what incentive does the seller have to keep it to around my original offer?
We've been over all of our finances with a broker, but that's what kind of worried me. I know a pre-qual isn't the same as pre-approval so that's why I'm definitely a little apprehensive about thinking anywhere above what he called our "comfort zone". I don't know if that was for our own personal benefit or if that truly is what we will be approved up to.
I think I just need to give them a call. Thanks for all the input.
We pre-qual'd for about 100 more than I wanted to spend. I simply had the mortgage lender adjust the prequal document to be the appropriate #, so I could have a leg to stand on to negotiate. If the seller saw what I was truly qualified for, there was no way I would have been able to get the price down.
Message edited 3/22/2011 1:26:34 PM.
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| Posted 3/22/11 1:25 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: How much can you push pre-qualification?
Posted by Belongs2DanBuckley
This was all done already- I just don't have the letter in hand. When he explained it to me, it made sense. Basically if we come in and offer X dollars, but the preapproval shows we can afford up to Y dollars, then what incentive does the seller have to keep it to around my original offer?
.
We were approved for more than what we coould afford and never changed our pre-approval letter. So one questioned it and we put offers on 7 houses. Just because you are pre-qual'd for a $ doesnt mean a buyer can afford that.
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| Posted 3/22/11 1:58 PM |
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Re: How much can you push pre-qualification?
Posted by Belongs2DanBuckley
Posted by Beth EXIT Realty
I would go get a pre-approval ASAP
It's really to your disadvantage to not have one at this point
From what I was told, its more of a strategy than anything else. I'll get the pre-approval for the amount we're offering
I don't think it was explained properly
let's say you are pre-approved for $400k
but the house you want to put an offer in on is $350K
you simply have the loan officer print you a letter for $350K
but you should not wait till you are in that situation to find this out
I do it all the time- I like my buyers to know what they are pre-approved for and what the payment will be
but it doesn't mean I use the letter for the highest amount
but I normally do everything verbal until we agree and then do the paperwork- unless it's a bank owned- they they want the paperwork upfront
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| Posted 3/22/11 2:26 PM |
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hunnybunnyxoxo
this is what it's all about
Member since 11/07 3321 total posts
Name:
Lisa
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Re: How much can you push pre-qualification?
Posted by Belongs2DanBuckley
Posted by Century 21 Dallow - Christine Braun
Are you saying that your agent recommended you NOT get preapproved for strategy reasons? I really don't understand that. What strategic advantage could there be to delaying a preapproval?
I like to have my customers get a preapproval letter asap. That way, no one wastes any time (including you) looking at houses that are way above their price range. And also, sometimes buyers don't realize how much they can afford and what the monthly payments would be, so they look at houses.
Most importantly, if you find a house you want to make an offer on, you NEED to have a preapproval in hand. No seller is going to take your offer seriously if you can't show you can afford the house. And no good agent would want to risk their own credibility by presenting an offer from buyers who may not be financially qualified.
To me, a prequal is meaningless.
When thinking about what you can afford and your personal comfort level, keep in mind that you will need to pay the property taxes, homeowner's insurance, utilities, possibly pmi (depending on your loan type and down payment amt), and all upkeep and maintenance on the house. You should sit down with a loan officer and get counseled on all of this.
If you need some recommendations for a good mortgage person, let me know!
This was all done already- I just don't have the letter in hand. When he explained it to me, it made sense. Basically if we come in and offer X dollars, but the preapproval shows we can afford up to Y dollars, then what incentive does the seller have to keep it to around my original offer?
We've been over all of our finances with a broker, but that's what kind of worried me. I know a pre-qual isn't the same as pre-approval so that's why I'm definitely a little apprehensive about thinking anywhere above what he called our "comfort zone". I don't know if that was for our own personal benefit or if that truly is what we will be approved up to.
I think I just need to give them a call. Thanks for all the input.
our mortgage person changed the preapproval everytime i put an offer on a house. lets say i was preapproved for a million dollars, but the house i was interested in buying was listed at $300,000, then he would draft a letter saying that we were preapproved for $300,000.
we did this for every offer we made..
he never put the full amount we were truly preapproved for b.c of the exact reason you mentioned.. if people see that you can "afford more" then they will want you to bid more...
just have them curtail your preapproval to your asking price.
good luck!
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| Posted 3/22/11 2:56 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: How much can you push pre-qualification?
Posted by Beth EXIT Realty
Posted by Belongs2DanBuckley
Posted by Beth EXIT Realty
I would go get a pre-approval ASAP
It's really to your disadvantage to not have one at this point
From what I was told, its more of a strategy than anything else. I'll get the pre-approval for the amount we're offering
I don't think it was explained properly
let's say you are pre-approved for $400k
but the house you want to put an offer in on is $350K
you simply have the loan officer print you a letter for $350K
but you should not wait till you are in that situation to find this out
I do it all the time- I like my buyers to know what they are pre-approved for and what the payment will be
but it doesn't mean I use the letter for the highest amount
but I normally do everything verbal until we agree and then do the paperwork- unless it's a bank owned- they they want the paperwork upfront
Probably not. I'm trying to educate myself as much as possible about this process but sometimes my eyes glaze over and a little bubble appeears over my head with a cow playing a ukalele in it. I fade in and out 
I just contacted my broker to get the real scoop. Thanks for the input!
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| Posted 3/22/11 3:10 PM |
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Re: How much can you push pre-qualification?
I know it's a lot to take in....if you are ever unsure about something FM me
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| Posted 3/22/11 3:27 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: How much can you push pre-qualification?
Thanks
BTW- just spoke to the broker- I'm golden  
Apparently I don't listen there either- the range he told us was his "suggestion" but we can afford WAY more than that. Good to know  
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| Posted 3/22/11 3:35 PM |
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Re: How much can you push pre-qualification?
Glad it worked out. I am sure your broker can give you a breakdown of monthly payments if you want to be assured of affordability and stay within your comfort level.
I totally agree with the strategy of not revealing that you are preapproved for way more than you are offering. When I bought my own house, we literally could have afforded a home twice as expensive, but we made sure we only showed that we were preapproved for the amount needed to purchase the home. I misunderstood your post and thought that your agent had suggested that you hold off on getting preapproved altogether, which would be madness!
Good luck!
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| Posted 3/22/11 3:46 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: How much can you push pre-qualification?
I algso agree about getting updated pre approval letters for each offer you make. A difference of 1000 a year in taxes would equte to about 15K more on the mortgage. Good luck with your offer!
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| Posted 3/22/11 4:15 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: How much can you push pre-qualification?
Thanks! We shall see. I haven't even seen the house in person yet so I'm literally just getting myself ready just in case. After hearing all the craziness and bidding wars alot of you ladies have been through in the past, I'm not going to waste my time. Especially since we already lost a house we absolutely loved because we waited too long.
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| Posted 3/22/11 4:18 PM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: How much can you push pre-qualification?
Posted by Belongs2DanBuckley
Thanks! We shall see. I haven't even seen the house in person yet so I'm literally just getting myself ready just in case. After hearing all the craziness and bidding wars alot of you ladies have been through in the past, I'm not going to waste my time. Especially since we already lost a house we absolutely loved because we waited too long.
good plan, take it from me. if you LOVE it, offer right away. its just an offer, you can always walk away. (now send me the mls, i want to see it)
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| Posted 3/22/11 5:46 PM |
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