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Mortgage loan

Home Mortgages and Home Buying Mortgage loan

  • Avatar tmark 
    Participant
    Status: Physician
    Posts: 34
    Joined: 07/26/2016

    Hi Everyone,

    We are just starting to look into home buying and I had just a few questions as I can’t remember what we did the first time 7yrs ago when we bought our townhouse.

    I was told the lender does a hard pull of our credit reports to issue a preapproval letter and that this letter is good for 4 months. We have no idea if it will take us 6 months or 2 years to find a house we like (we are in no hurry), so is the typical approach-  to just keep requesting preapproval letters every 4 months (knowing it will knock our credit scores temporarily by repeatedly doing this)?

    Also any particular lenders to look into or to avoid? Our current mortgage is with Wells Fargo, so I had initially spoken to them, but we have not completed the mortgage application with them just yet.

    Any additional thoughts for this process? Any real estate agents anyone would recommend. We used an agent the first time, but I feel that I actually did all the work with finding houses to tour and coordinating visits and the agent just let us into the houses.

    Thank you for any thoughts!!

    #194974 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6177
    Joined: 01/12/2016

    If you’re not sure of timing I wouldnt get any letters unless I thought there was something I liked, I’ve had same day turnaround, shouldnt be a limiter.

    #194980 Reply
    Liked by SLC OB
    Avatar tmark 
    Participant
    Status: Physician
    Posts: 34
    Joined: 07/26/2016

    Oh, great point. I had no idea you can get a preapproval letter that quickly. That does make more sense to wait then!

    #194981 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1312
    Joined: 02/15/2016

    Just wait until you’re serious about negotiating.  You can go to open houses.  Our city has a event every spring and fall where builders showcase their new homes all over the city.  Don’t sweat the minimal credit hit on a credit pull for pre-approval.  It’s really only important when you’re making an offer.  If your price range is sky high, then some houses ask for the pre-approval before a showing, but that’s more for upper ends of the housing market.

    As for a realtor, it sounds like your first one was terrible.  Since real estate is local, you’ll want to talk with people you know about their experience and get recommendations.  Once you get more active in looking at a lot of houses, go ahead and get the pre-approval letter.

    #194993 Reply
    Avatar tmark 
    Participant
    Status: Physician
    Posts: 34
    Joined: 07/26/2016

    Ok, will look into better realtor options then. As hopeful that would make our lives easier!

    #195013 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 1807
    Joined: 02/11/2019

    Consider looking without a realtor.  It is easy to look online to find homes now.  It is not hard to get an inspection company and lawyer.  The sellers agent will be working on their end.  You can negotiate the cost off your price.

    Everyone thinks that the seller pays for the agents so why not have one when you are the buyer but if you do not have one the seller needs to pay for then you can collect that “fee”

    “Never let your sense of morals prevent you from doing what is right.”

    #195018 Reply
    Liked by octopus85
    Avatar tmark 
    Participant
    Status: Physician
    Posts: 34
    Joined: 07/26/2016

    That is a good idea. Will start looking ourselves and see if we can find good options that way, but if not, then look into realtors.

    #195033 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3030
    Joined: 09/18/2018

    Both the listing and the selling agent collect commission, typically 3% each. Both are fiduciaries to the seller!

    You can have a buyers agent agreement. That’s how you get someone to “scout”. Otherwise, an agent showing has no assurance that the next house you use someone else. Most agents have a broker they office with that gets paid. Regardless of the commission negotiation, the selling agent and borrower look at net in their pocket. You offer a price, seller and agent handle the commission.

    #195035 Reply
    Liked by StarTrekDoc
    Avatar StarTrekDoc 
    Participant
    Status: Physician
    Posts: 2040
    Joined: 01/15/2017

    Hi Everyone,

    We are just starting to look into home buying and I had just a few questions as I can’t remember what we did the first time 7yrs ago when we bought our townhouse.

    I was told the lender does a hard pull of our credit reports to issue a preapproval letter and that this letter is good for 4 months. We have no idea if it will take us 6 months or 2 years to find a house we like (we are in no hurry), so is the typical approach-  to just keep requesting preapproval letters every 4 months (knowing it will knock our credit scores temporarily by repeatedly doing this)?

    Also any particular lenders to look into or to avoid? Our current mortgage is with Wells Fargo, so I had initially spoken to them, but we have not completed the mortgage application with them just yet.

    Any additional thoughts for this process? Any real estate agents anyone would recommend. We used an agent the first time, but I feel that I actually did all the work with finding houses to tour and coordinating visits and the agent just let us into the houses.

    Thank you for any thoughts!!

    Click to expand…

    Congrats on home hunting — we love doing it just for kicks and giggles and ways to see to spend money on updates 😉

    Redfin.com and Zillow.com are great places to get organized and see what prices are in your community.  Do your own research on housing market temperatures —  As Tim said, most agents out there are for the seller and themselves—not you.   Only way to get that is a contracting a ‘buyer’s agent’ yourself.   Use Redfin – save $$ and get educated too for best pricing.

    No preapproval until you’re serious.  Get prequalified with your local bank/credit union as they will have your rough data and DONT PULL CREDIT until you’re ready — safest way on this is bail if they want your SS#.

    Bankrate.com will give you rough numbers to go after —   PenFed is awesome, but very slow on closing.

     

    #195044 Reply
    Liked by Hank
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3500
    Joined: 01/14/2017

    Wait until you’re a week or so out from seriously looking.  A pre-approval is a hard pull.  Pre-qualified may be something else and may not involve a hard pull.  My realtor said in a situation with multiple offers they won’t even look at you if you don’t have a pre-approval/qualified letter.  Sounds like you should be in the market research stage and feeling out different real estate agents.

    #195083 Reply

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