First time home buying idiot right here

Asked by ceceliahlewis, Navarre, FL Sun Aug 18, 2013

We went too one bank, she said we had a 50% chance of getting the pre approval we need for the house we want on short sale. So we went ahead and went to a bigger bank to see what they thought they said hey could 100% get us approved and now the first bank said she thinks she got us a program that will accept us.

QUESTION if both the banks come back with yes to our loan do we have to say yes to both ? Or can we just say yes to the one that's the better rate and etc or will that hurt us badly ?!

We're just trying to get the house we want before someone else does, it's 90, and we have 20 down I don't want us to be totally screwed but I'm not really sure if its bad or good, I was told to shop around but idk what to do now

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Karen Peyton, Agent, Chandler, AZ
Sun Aug 18, 2013
Since your aunt is a broker, will be representing you, knows the specifics of your financial situation, and is familiar with the properties you are considering to buy - you should really email your questions to her. I'm thinking she may have suggested the two companies that are offering loans too. No doubt she'll have an opinion.
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Diane Tanke, Agent, Algonquin, IL
Sun Aug 18, 2013
I think it's a great idea to shop around for your loan. Compare lenders and choose not only the one that offers the best package but also the one you feel most comfortable with. Good luck with your home purchase!
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ceceliahlewis, Home Buyer, Navarre, FL
Sun Aug 18, 2013
My aunt just retired as a broker, last month she's been helping me alot but she's out of the country right now, so I can speak with her on it, noone else is looking at the short sell we know of we're good friends with the realtor. We weren't gonna say yes too both, I just didn't know if we got pre approved for it if we had to take it or I we got to choose. The short sale were looking at is simply to good to pass we want it and hopefully that's what we're getting but we also have a forclosure we like alot as well.
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My NC Homes…, Agent, Chapel Hill, NC
Sun Aug 18, 2013
You should not say yes to both, you can only say yes to one or the other. What you've done is "shop around" You should choose the offer that's best for you.

What you really need is a good buyer broker, particularly as you're both first time buyers and (in my mind) foolishly starting off with a short sale which you probably only have a 50-50 chance of getting anyway. These are often long protracted transactions and you are really going to need the advice of someone experienced with them.

If it's not too late already and before you get any further into things go find an experienced buyer broker. I've attached a link below on how to do just that. After you read it you can ask the lender you're going to use or click on the Find an Agent tab at the top of each Trulia Page and search for local agents in your area to interview.

I wish you all the best.
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ceceliahlewis, Home Buyer, Navarre, FL
Sun Aug 18, 2013
I haven't put any money down yet but we have 20 and have shown proof I brh banks so just making sure we're not getting messed up by this :/
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Louis Wolfs…, Agent, Needham, MA
Sun Aug 18, 2013
1st of all there are no stupid questions when it comes to real estate. An educated buyer is a good buyer.

You can say yes to as many banks as you want. However once you give any of them money it is forfeitable.

So go with the bank / mortgage person you feel most comfortable with, as long as the rate is competitive.

You do not need a mortgage to make an offer on a home. You do need a pre-qualification or even better would be a pre-approval subject to a p&s on a specific home and a satisfactory appraisal. This is a requirement of all banks that I am aware of, prior to them looking at your offer on a short sale.

It is also typical of good sellers agents to have you provide the pre-qualification before presenting your offer to their seller.

It is also wise of your buyer agent to have the same, so as to best guide you to properties within your price range.

Good luck hope this information was helpful.

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Greer Swiston, Agent, Newton, MA
Sun Aug 18, 2013
You aren't bound to anyone, but you may lose any money you may have put down to lock a rate or to start the process.

You're doing the right thing in shopping around and you should definitely understand what was causing the first bank to hesitate in the first place. BTW I tend to go with the bank that asked more questions ... their pre-approval is more likely to be more credible ... even if the big bank straight out said "sure!" and seemed to cause you more trouble? In the long run, they may end up messing up the deal because they didn't do their homework.

Why much of the pre-work is still subject to the bank, the underwriting of loans has become quite rigorous. The lender that does more of this upfront is much less likely to present surprises in the end and that may be the different of winning and losing the purchase you hope to get.
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Richard Shap…, , Framingham, MA
Sun Aug 18, 2013
You could still go elsewhere too. Sounds like there is something in your application that makes it not a slam dunk. That's ok, you may have to shop around more so for a company that is willing to work with you. Putting 20% down does help.
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