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Elbee
Zanzibar
Member since 5/05 10767 total posts
Name:
Me
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Pre Approval: Can Someone Explain ...
Why they give you an astonomical pre-approval amount when deep down you know there is no way you could even consider a house in that price range without living on ramen noodles for the rest of your life?
I don't get it.
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Posted 8/23/05 11:52 AM  |
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danielleandscott
My new 71 Super Beetle
Member since 5/05 13476 total posts
Name:
Scott
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Re: Pre Approval: Can Someone Explain ...
Just figure out your budget...and then you can figure out how much of a house you will be able to afford.
That is what Danielle and I did
Scott
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| Posted 8/23/05 12:31 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Pre Approval: Can Someone Explain ...
Posted by Elbee
Why they give you an astonomical pre-approval amount when deep down you know there is no way you could even consider a house in that price range without living on ramen noodles for the rest of your life?
I don't get it.
Because if you have good credit... they feel that you WOULD be willing to do "ramen noodles" in order to not miss a payment.
All they care about is getting their money. Do what Scott says and you will be fine.
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| Posted 8/23/05 12:37 PM |
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Elbee
Zanzibar
Member since 5/05 10767 total posts
Name:
Me
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Re: Pre Approval: Can Someone Explain ...
well I did that (I do that monthly) and I'm comfortable with what I think I can afford. I'm just surprised that the amount came in well above anything I think I can ever carry.
It's scary to think how many people actually may use the full-amount allowable I guess. I don't think I'd be able to sleep at night.
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| Posted 8/23/05 12:41 PM |
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julz33
i run for bacon
Member since 5/05 20584 total posts
Name:
julz
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Re: Pre Approval: Can Someone Explain ...
Posted by Elbee
well I did that (I do that monthly) and I'm comfortable with what I think I can afford. I'm just surprised that the amount came in well above anything I think I can ever carry.
It's scary to think how many people actually may use the full-amount allowable I guess. I don't think I'd be able to sleep at night.
Same thing happened to us. We ended up taking a mortgage for much lower than they approved us for.
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| Posted 8/23/05 12:48 PM |
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Re: Pre Approval: Can Someone Explain ...
Posted by Elbee
well I did that (I do that monthly) and I'm comfortable with what I think I can afford. I'm just surprised that the amount came in well above anything I think I can ever carry.
It's scary to think how many people actually may use the full-amount allowable I guess. I don't think I'd be able to sleep at night.
I know what you mean- I always confuse "gross" and "net" and put our take-home pay on one application, and this mortgage guy said to me, "Well, you can get approved for a lot more since your income's actually higher than what you put down." I was thinking, is he nuts? If we don't take the money home, we do not have it to spend!
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| Posted 8/23/05 2:07 PM |
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Elbee
Zanzibar
Member since 5/05 10767 total posts
Name:
Me
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Re: Pre Approval: Can Someone Explain ...
Posted by MrsProfessor
If we don't take the money home, we do not have it to spend!
EXACTLY! 
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| Posted 8/23/05 4:16 PM |
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dm24angel
Happiness
Member since 5/05 34581 total posts
Name:
Donna
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Re: Pre Approval: Can Someone Explain ...
Posted by MrsProfessor
Posted by Elbee
well I did that (I do that monthly) and I'm comfortable with what I think I can afford. I'm just surprised that the amount came in well above anything I think I can ever carry.
It's scary to think how many people actually may use the full-amount allowable I guess. I don't think I'd be able to sleep at night.
I know what you mean- I always confuse "gross" and "net" and put our take-home pay on one application, and this mortgage guy said to me, "Well, you can get approved for a lot more since your income's actually higher than what you put down." I was thinking, is he nuts? If we don't take the money home, we do not have it to spend!
agreed! we were pre approved for much more then I can ever imagine we could spend!
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| Posted 8/23/05 8:28 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Pre Approval: Can Someone Explain ...
Posted by Elbee
Posted by MrsProfessor
If we don't take the money home, we do not have it to spend!
EXACTLY!
The reason they ask for gross is because of the tax advantages a house brings. You pay RE taxes and Mortgage Interest with gross funds... not net funds.
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| Posted 8/23/05 8:37 PM |
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Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
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Re: Pre Approval: Can Someone Explain ...
Posted by DjPiLL
Posted by Elbee
Posted by MrsProfessor
If we don't take the money home, we do not have it to spend!
EXACTLY!
The reason they ask for gross is because of the tax advantages a house brings. You pay RE taxes and Mortgage Interest with gross funds... not net funds.
i see....but still the price that they give you for the max amount of a loan is crazy....and would not be able to be done by spending every little penny from the paycheck you provide them
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| Posted 8/23/05 8:39 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Pre Approval: Can Someone Explain ...
Posted by Redhead
i see....but still the price that they give you for the max amount of a loan is crazy....and would not be able to be done by spending every little penny from the paycheck you provide them
Thats why I said earlier a lender will inflate the number for somebody with excellent credit.
They know someone with excellent credit would rather live in poverty than miss a mortgage payment.
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| Posted 8/23/05 8:46 PM |
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dm24angel
Happiness
Member since 5/05 34581 total posts
Name:
Donna
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Re: Pre Approval: Can Someone Explain ...
Posted by DjPiLL
Posted by Redhead
i see....but still the price that they give you for the max amount of a loan is crazy....and would not be able to be done by spending every little penny from the paycheck you provide them
Thats why I said earlier a lender will inflate the number for somebody with excellent credit.
They know someone with excellent credit would rather live in poverty than miss a mortgage payment.
well my pre approval was more then we would ever spend, and more then we think we can afford and we have so-so credit. Its not horrible but its far from great either.....We were in SHOCK to be honest.
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| Posted 8/23/05 9:49 PM |
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