The simple answer is yes - there may not be a loan approval after you find a home. An easy way to solidify the approval and guard against future guideline changes to to submit your file for a credit only approval. This allows your file to go completely through the underwirtting process and gain a full mortgage commitment letter with UW signatures.
FHA guideline changes usually are based upon the date that your FHA case number is assigned and the date of UW approval. If a full credit approval is granted before the guideline change you are typically exempt from the new rules for a period of time - i.e. you may have 90days to close before the rule change becomes applicable.
Hope this helps. Feel free to contact me with any quesitons.
Keven M Brennan
And another thing, if I tried to sell my clients a 5.625% rate on a conforming loan, none of them would be stupid enough to take it, and I would have no business. If, however, I told them that I would charge them no fees at that rate, they might want to, and I would be happy to do that because I would make a bundle. In reality, at that rate, I could probably cover the majority of their closing costs including title charges. Most people want the lower rate. At the time you mentioned, I had people closing at 4.875% on a 30 year fixed with limited fees, and it was a relatively small loan by my standards, $187,500, and was on a co-op refi. If you want to talk you clients into the fact that they are getting a good deal, go right ahead. Most people are smart enough to at least get some information via the internet to know that they are not getting a great deal.
Kristine Bredeau, Vice President
Mortgage Branch Manager
3725 West Grace Street Suite 300
Tampa, Florida 33607
Apply On-Line: http://www.KristineBredeau.com
The day of the closing the bank sent a email notifing that not going to have a closing because they went out of funds, Is this really happen?
Locate a true solid profit reporting BANK such as BBVA-Compass who reported a porfit in 2009 to Wallstreet in January for total profit of $5.3 Billion. While other banks such as B of A and Wachovia were busy taking TARP money, and taking our country further to it's knee's !!!! Buyer's BEWARE !
HomeBanc files for bankruptcy - Atlanta Business Chronicle:
HomeBanc files for bankruptcy ... HomeBanc Mortgage Corp., Atlanta's largest independent mortgage company, has filed for Chapter 11 bankruptcy protection. ...
atlanta.bizjournals.com/atlanta/stories/2007/08/06/... - 81k - Cached
So, if a solid Bank gives to you a pre-approval or approval letter you can bet they will certainly deliver on what they stated in the letter.
The Sr Loan Officer at BBVA that my client used was Tom Callahan at cell 904-591-6722.
Good luck to you. DB
HomeBanc can also provide a lender committment letter to you. The commitment letter will help you when bidding on bank owned foreclosures because it gives a higher level assurance of your ability to obtain financing than a fly-by-night mortgage brokers's letter.
Today's lending environment is unlike anything we have seen in a very, very long time. Unfortunately, getting through underwriting and to the closing table for most buyers presents challenges and hurdles that most of the time can be overcome. The best thing to do is speak with a reputable lender who has a representative here locally (for example, speak with a Wells Fargo loan consultant who is here in Jacksonville). We have found that having the ability to walk in and meet with someone, drop off paperwork and just that face to face contact makes the process so much easier, especially if questions/issues arise. You are better served with a reputable company, because truthfully, you get what you pay for. If you need some recommendations for people to speak with, please let me know. Prepare yourself that it will take some effort on your part to pull documents and paperwork, etc. to get through the process, but keep in mind it can be done!
Again - if I can be of assistance, please let me know. Best of luck to you.
You should make note that :
a. HomeBanc is not in Jacksonville,Fl any longer, it just did not work for them in the local market and they are not a bank. Therefore it is not thier money they are loaning, meaning they answer to an investor which can change your pre-approval.
b. You should deal direct with a strong Bank. Most banks have "portfolio's" in which to place their loans, meaning it is the banks money and they call all the shots, and do not answer to investors like Brokers and Mtg Corp's.
Make note that I recently had a client who was a first time buyer and closed on a outstanding program designed for first time buyer's. The bank is BBVA-Compass and I actually have had many clients use their services and all were pleased and closed on time. Unbelievable programs with 00% - 5% down and No MI, etc,etc at mid 5% range, 30 yr fixed rates.
And the NEW program allows you to skip 5 months of payments after close and BBVA is eating the interest. My client got 5.625%, 30yr , No Origination fee , No bank charges !!! I could not belive it !
The mortgage contact person was : Tom R. Callahan at 904-591-6722 or firstname.lastname@example.org
You should call him.
I hope this was some help to you. DB
Assuming that anything is possible, it could happen but why? If you were truthful, you will probably be OK. A pre-approval is hitting the high spots. There is no actual verification of stated income and liabilities. When people run into trouble, they usually have not totally disclosed their obligations. If everything is on the table and does not change until you get to closing...such as buying a new car that now puts your ratios out of wack...you should be OK.
Coldwell Banker Residential
Had they had to meet in a big room with their seller and all the attorneys, we would have had cookies and ice cream in there too ... I never saw a seller and buyer bond so much as that transaction! It was a pleasure.
I know your market is sad, and tough, but it's getting a tad better, right? No? What I am seeing here is more optimism than I've seen in a long, long time.
Body surfing on Snoqualmie would rip your skin off. Unless you were well-clad in raingear, and skiis. Pacific NW cement, for those who have skiied there!!
Your are way to young to remember GunSmoke.
Market is real Ruff here - so much pain - so many hurt people - UGLY UGLY!!!
No Attorneys if we can help it - we send contract to title company, they get loan docs
we close at table - checks are issued. Its wonderful.
I use to body surf off Snoqualmie- and other lies.
Do you guys bring in attorneys for buyers and sellers and all sit around the closing table together to sign papers? I can't quite imagine how fistfights don't break out in THAT scenario with some transactions ... :-) !
Happy St. Pat's!
I am sure you already know this but don't purchase anything on credit or change careers,
I'm only "kind of" joking. Buyers do all sorts of silly things, and buying new things on credit prior to closing on a new home is juse one of those classic things to "do not do this"!
Keep in mind too that lender requirements can change, with little or no notice. Nothing is for sure until you actually close escrow.
This is why you need a Realtor (I can not help you so this is not self serving)
if you find a home make an offer, that offer must be make with knowledge of what your lender can and can not do. This is why your lender and your Realtor must work together.
Your Realtor, will do a CMA on the property before you offer, this way you have a good chance of making an offer that will find favor with the appraisal your lender will order.
It's a mine field out here.