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Which bank(s) offer mortgage pre-approvals valid 6+ months?

Home Mortgages and Home Buying Which bank(s) offer mortgage pre-approvals valid 6+ months?

  • Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3030
    Joined: 09/18/2018

    @octopus85,
    A successful realtor depends on satisfied customers.
    “In fact, most buyers find their agents through a referral or work with an agent they used in the past 61 percent of the time. Seventy-three percent of sellers also used referrals from someone they knew or an agent previously they previously worked with. “

    A buyers agent contract will tell you:
    Listed 525
    Offer of 485
    Countered 505
    Bought a different house.

    If you don’t have a buyer’s contract, they are prohibited from telling you. The realtor wants you to buy A House, not that house. Of course, if you are negotiating “discounts” and limited to 3 showings, of course they have zero interest in service. Most realtors live in an area and depend on repeat business based on reputation and referrals. Kind of like physicians!
    Bad reputations don’t help.

    #205073 Reply
    Avatar Docbeans 
    Participant
    Status: Physician
    Posts: 172
    Joined: 01/11/2016

    wcireader, you are right on most counts.

    -I can see why you care about the length of validity of the pre-approval. You are looking in a restricted area and not sure when a house that you will love comes up, so you’d like for the pre-approval to last longer so you dont have to keep renewing it and getting repeated dings on your credit. I went the same way… I have been living in a certain part of town and wanted to buy in this area and was looking for the perfect lot to come up on which to build upon. So, I didnt get a pre-approval at all. I had a proof of funds letter from the bank I have my savings account at, where the very sizable downpayment was accumulating. A couple of listing agents tried to be condescending to me about this but when they heard I knew my stuff, they relented (and its in their interest to not turn me away).

    -You are also right about the agents and how their commission works. If you buy a property without a buyer’s agent, the listing agent will keep all 5-6%. It usually doesn’t work to bring down the price by 2-3% because the commission being saved is not going to the seller but to his agent.

    -You can definitely see properties without your discount agent, have done that innumerable times. If the listing agent asks whether you are working with an agent, come clean and let them know. With me, they’ve never asked. They are obviously very cordial to a potential buyer. Sometimes, I’ve mentioned by way of conversation that I often look at properties on my own without bothering my agent. When serious about a place, call your agent- he will be thrilled to get a commission without any effort on his part.

    -Another way to do it, if you havent signed a contract with your agent, would be to go without your agent and if you are ready to make an offer- ask if the seller’s agent is ready to do dual agency (if allowed in your state). Mention that you have worked with someone but are not contractually obliged to them. If they would like, you can work with them for 1.5-2% rebate. The listing agent still makes out better (4/4.5% vs 3%).

    Good luck with your home search!!

    #205077 Reply
    Liked by wcireader
    Avatar wcireader 
    Participant
    Status: Physician
    Posts: 110
    Joined: 02/26/2017

    wcireader, you are right on most counts.

    -I can see why you care about the length of validity of the pre-approval. You are looking in a restricted area and not sure when a house that you will love comes up, so you’d like for the pre-approval to last longer so you dont have to keep renewing it and getting repeated dings on your credit. I went the same way… I have been living in a certain part of town and wanted to buy in this area and was looking for the perfect lot to come up on which to build upon. So, I didnt get a pre-approval at all. I had a proof of funds letter from the bank I have my savings account at, where the very sizable downpayment was accumulating. A couple of listing agents tried to be condescending to me about this but when they heard I knew my stuff, they relented (and its in their interest to not turn me away).

    -You are also right about the agents and how their commission works. If you buy a property without a buyer’s agent, the listing agent will keep all 5-6%. It usually doesn’t work to bring down the price by 2-3% because the commission being saved is not going to the seller but to his agent.

    -You can definitely see properties without your discount agent, have done that innumerable times. If the listing agent asks whether you are working with an agent, come clean and let them know. With me, they’ve never asked. They are obviously very cordial to a potential buyer. Sometimes, I’ve mentioned by way of conversation that I often look at properties on my own without bothering my agent. When serious about a place, call your agent- he will be thrilled to get a commission without any effort on his part.

    -Another way to do it, if you havent signed a contract with your agent, would be to go without your agent and if you are ready to make an offer- ask if the seller’s agent is ready to do dual agency (if allowed in your state). Mention that you have worked with someone but are not contractually obliged to them. If they would like, you can work with them for 1.5-2% rebate. The listing agent still makes out better (4/4.5% vs 3%).

    Good luck with your home search!!

    Click to expand…

    Thank you so much for your detailed reply and for the information – very very helpful!!!

    #205082 Reply
    Liked by Docbeans

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