ElizaRags35
My 2 Girls
Member since 2/09 20494 total posts
Name:
Me
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Worried about getting pre-approved UPDATE!
DH and I are slowly starting to get into the home-buying process. I am so unbelievably nervous about getting pre-approved. We stupidly went to a few open houses without getting pre-approved and FELL IN LOVE! I want this house. I NEED this house! 
Anyway, I know we have a long shot of getting this house but we need to get pre-approved regardless and I'm just afraid we won't be. Our salaries are decent, we have some savings and enough for a down payment but our credit may not be the greatest and I have a feeling that will kill us in the end.
Has anyone not been pre-approved at first? How long did it take for you to get approved after if at all? We're looking at an FHA Loan - 3.5% down.
One other question not about getting pre-approved... how much on average are closing costs minus the cost of the buyer's attorney and lender's attorney (my Uncle is a RE Attorney.)
Thanks! (and please wish us lots of luck!!)
UPDATE - 6/14
So DH spoke with the woman my Uncle recommended we deal with for pre-approval and we are PRE-APPROVED for over $300k!!!
She also recommended we have a REA show us a couple of more houses in the area just in case. But we went to a bunch of open houses in the same area that were around the same price but none even compared to the quality of the one we love. The others either need new paint, the floors need to be redone, and a bunch of other updates (which I know don't need to be done right away but still would be $$$$). This one is 100% move in ready with no updates needed (barring any issues with the home inspection).
We also have to find out from her how much she thinks our closing costs will be and then we can sort of take it from there. OMG But either way... we are pre-approved!!
Thanks for you help!
Message edited 6/14/2011 1:47:00 PM.
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8ternity
<3
Member since 11/08 10586 total posts
Name:
Formally NYPD-Wife
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Re: Worried about getting pre-approved
First you need to go rate shopping, see what banks are giving the best rate and also banks that are giving loans. Wells Fargo is know for giving loans now. Once you find a bank, the pre-approval takes 30 minutes. As long as you have all the docs they require they can run your credit report and do the pre-appoval. They need W-2's, pay stubs, bank statements etc...
Good Luck! 
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jteach
2 and through
Member since 9/07 3939 total posts
Name:
Jess
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Re: Worried about getting pre-approved
My dh is a mortgage banker for Wells Fargo. He works with 1st time home buyers all the time. I am sure he would be happy to give you all the info you need, especially if you tell him you are part of LIF 
Let me know if you would like his info
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Re: Worried about getting pre-approved
You MUST be preapproved before you make an offer. No seller will seriously entertain an offer without having some assurance that the buyer can secure financing (and no halfway competent listing agent would let a seller do so).
And, for your own sake, you want to know what you can afford, in terms of a mortgage, and what your monthly payments will be (roughly -- obviously will vary depending on interest rate you get, taxes). When you are buying a house (unless you are using all cash to purchase), the monthly payment is way more important than the overall price in terms of figuring out if a home is affordable for you. Keep in mind that with an FHA loan, you will have mortgage insurance, too.
You should talk to a few different mortgage professionals (I can also recommend some people, if you need names). You are not obligated to use the lender or broker who preapproved you when it comes time to apply for a mortgage.
You can usually get preapproved very quickly (within a day or two). As far as getting approved for a mortgage, you don't apply for your mortgage until you are under contract on a house. From there, it depends on the lender. I work with a lender who can close deals in less than 30 days, but some take longer. I'd say on average, it's 45-60 days to get a commitment from a lender.
For an FHA loan, credit score requirements are a little less stringent than with a conventional loan, but there is still a minimum score (I typically hear around 640 for FHA, but varies). A lender will also look at your debt-to-income ratio, cash reserves (you need to have something left over once you make the down payment and pay closnig costs), etc. If you for some reason can't qualify now, a good mortgage pro can tell you what to do so that you can qualify in the future (e.g., refer you to a credit repair service).
Closing costs, I always tell buyers to figure 6%, worst case. With FHA, there are some extra fees -- I believe you have to pay 1% mortgage insurance premium upfront, among other things. Every situation is unique -- but your lender will give you a good faith estimate of your closing costs when you apply for your mortgage, and can explain upfront what they are likely to include. (Obviously attorney's fees are separate, but you'd only be paying for your own attorney, and if you have a relative who can do it, that's not an issue then!).
Good luck! Let me know if I can help.
PS - I would definitely look around a little more. When I first started looking, my husband and I fell in love with a house we saw at an open house. We didn't buy it -- at that point, we were really just casually looking. A year later, we started seriously looking and the house I bought now is so much better for us than the first house we thought we loved. It's bigger, has a better layout, more bathrooms. So be careful about jumping on something too soon before you really know what you can afford and what that money can buy!
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