So I am buying a house and I'm just curious...?

Question

I went through the pre-qualification process, found my home, made an offer, signed the purchase of sale, and now have givien the bank my papers to complete the process. I am just a worry wort and want to know how often it is that a bank gives you the good faith estimate and then denys you? I am just excited about the move and hate the waiting process. If they pre-approved me then it is a sure thing right? I also did go to a debt consolidator a year ago but the bank knows my credit score and did their analysis and approved me for a certain amount so I am good right? I just really don't want it to fall through. Any help is greatly appreciated!

Answer 1

If you have been pre-qualified, and there is no material change in your income and debt, then you should be fine. The Good Faith Estimate is a required disclosure under the Real Estate Settlement Procedures Act, that banks must give within 3 days of application. The fact the bank gave you this document neither guarantees the loan nor does it mean anything bad. It's a required disclosure.
Again, assuming your employment remains the same, and you were honest about your income level on your application (they will do a verification of employment and income) and you don't take out more debt (which would change your debt to income ratio), then you should be fine. Ask your bank when they expect to have a Mortgage Commitment letter sent to you. Once you receive this, you are cleared for landing...unless something material changes at the last minute - i.e. you lose your job and the bank finds out etc.
Otherwise, it sounds like you are worrying too much, and you have already indicated that there's a agreement of sale in place with the seller. Thus, the seller cannot back out on you now.

Answer 2

You good for now...but when your loan gets sent to underwriting for final approval, some questions may come up if you have had problems with your credit. You may just have to give the underwriters a written explaination of what happened or what the situation was...ex. loss of job, medical problems, etc.

But since your lender already preapproved you...you 're fine for the time being. The lender knows which loan programs are out there and what the qulaification requirements based on the loan needed. When they ran your credit and got your personal information, they used this info to determine which loan you qualified for. The most important thing is that your employment and income information checks out. The underwriters need to know that your have the capability of repaying the loan.
If you have any questions, just call your loan officer and ask them. But don't worry when or if any conditions come up before the lender can get the final loan docs. There are always some sort of conditions when getting the final approval...the loan officer will let you know what you have to do, if anything.

Answer 3

As long as you haven't changed your financial situation since getting pre-approved you should be fine (charging up your credit cards, getting personal loans, higher auto loan, etc)

The waiting period is just a game to make you really, really want the home and make you willing to accept any offer. Be careful to make sure they don't change your loan on you at the last minute.

Just make sure you trust your lender and everything should be fine. I would verify things like if there is a prepayment penalty, actual interest rate, if you are paying points, what type of loan (arm or 30 year fixed), origination fees, etc to make sure they aren't outrageous.

You should be fine. Please with less than perfect credit get home loans every day.

The banks know that most people will do anything to keep their home and are willing to actually lend you more than you can actually afford. When budgeting be sure to include taxes, HOA fees, maintenence, utilities and any other surprises that might pop up when owning a home.

Good luck!

Answer 4

a good faith estimate is sent out in the preliminary package, a pre-approval does not really mean much. i work at a mortgage broker and we very rarely deny people right off the bat. we take what they give us and see what program we can give them to best suite their needs. there are often times a deal gets clear to close and then we find out something and the deal is denied. nothing is final until you sign the final papers and get your money. i am not trying to discourage you by any means i am just being honest. a pre-approval is not set in stone and a good faith doesnt mean the deal is yours, that just shows you what fees you may be charged. hence the term "estimate" your credit score could drop, make sure not to make any large purchases, get new credit cards, take out other loans etc.

Answer 5

creditors are specifically involved by verifying your earnings--it must be sufficient to cover your very own loan charge each and each month. Your very own loan could be 30%-40% of your earnings, perhaps much less in case you have particularly some different debt. Your job historic previous is significant to various levels, based on the region. while you're youthful and merely out of faculty, creditors do no longer care in case you do not have an prolonged artwork historic previous, particularly in case you have a good job on the time of application. while you're on your 30s or 40s and don't have an prolonged artwork historic previous however, they could be unwilling to lend. additionally, while you're paid on value (as antagonistic to earnings) they are going to desire to be certain a minimum of a year of earnings--they'll probable typical the final 4-6 months of earnings and use that quantity to be certain your earnings. you will possibly no longer have very many expenditures now, yet you will once you purchase a house. you're able to have particularly some application expenditures, tax expenditures, coverage expenditures, a huge morgage bill, and unpredicted expenditures like for while the water heater breaks or the roof leaks. be certain you have sufficient funds stored and a severe sufficient earnings to guard all that till now you purchase a house.

Answer 6

You may be worrying unnecessarily. There is no guarantee on the mortgage, even with pre-approval, but if nothing materially has changed in your employment, credit, or finances, you should have no problem.

Only you know if there is something to worry about.

Answer 7

You should be ok. Unless you charged up your credit cards and stuff like that after you were pre approved. I'm assuming you didn't. Don't worry. You should be good.

Answer 8

if you were already preapproved you have nothing to worry about, after i was preapproved and found the house i wanted and signed everything it took about a month before i was actually able to move into the home.....good luck with the moving process (you never realize how much junk you got till you move)

Answer 9

Odds are it may fall through. I had everything in order as well and was denied at the very end. It was a nightmare because I had already moved out of my place and temporarily moved in with my parents. I hope it works out for you though.

Answer 10

i dont think you will get it.