Get Preapproved for a Mortgage in Tampa, Florida
Here (below) is a story about the age old debate of mortgage preapproval letter (sometimes known as mortgage prequalification letters) versus an mortgage approval letter.
As you can see from the article written by Greg - He details an experience of a fraudulent mortgage pre-approval letter in which the borrower was not even pre-approved credit wise
There are basic steps in the home loan approval process and home purchase process.
- Pick your Professionals; Both realtor and a lender. This can be done thru referrals from other professionals (attorneys, CPAs, Insurance Agents), family or friends and most of the time the agent that you are dealing with
- Converse with your LENDER regarding to get pre-approved for a mortgage. Supply him or her with documents including but
not limited to: - Tax statements (all forms)
- Two to three months bank statements - front and back (Yes even those that are blank but say "page # of so many #s)
- Copies of Insurance Binder
- Copies of Rent Payment Verification (VOR)
- Copies of ALL asset statements (that means every single one, 401k, 403B, Stocks and Bonds, All Banks accounts, mutual funds, IRA)
- Have your credit pulled by your mortgage lender. (if you are not credit qualified, go get it repaired and come back)
- Copies of Paystubs for the last 30 days (whether it be SSA/SSI, Retirement, or a normal job)
- Gift Letter , deposit reciept and account statement from where it is being gifted from
- Certificate of Eligibility (For VA Loans)
- Copies of Picture ID and SS Cards
- Once this is completed, then you will be issued an mortgage approval letter up to a maximum amount. I reccommend that if you, the reader, are a two income family, then your maximum payment should be 65% of the higher income on a monthly basis
- When you have your mortgage approval letter in hand, Go make a dream list and go shopping with it
- Once your have picked out a home that mets all or most of your requirements from step 4, sign a contract and write a check for the escrow deposit. Make the contract for 45 days minimum closing time and contingent upon affordable mortgage financing and affordable insurance cost
- Complete the home inspections, surveys, and appraisals.
- Don't forget about your home owners and flood insurances
- Get a clear chain of title.
- Titles cannot be transferred nor can a property be sold if the prior action was a foreclosure AND the right of redemption has not yet expired
- Endure a second credit report check (new requirement)
- Get a loan committment (clear to close)
- Bring your closing funds (cash to close) to the title office in the form of a certified bank check (cashiers check)
- If your lenders approval requires you to pay off an account to make your debt to income ratio within guidelines, include that amount in your closing costs
- Sign off on the documents (Ask for clarification if you don't understand something or the terms as you know it has changed). Bring copies of the original GFE (Good Faith Estimate) and TILA (Truth in Lending Agreement) supplied to your at the time of initial application
My whole point here is that with a mortgage pre approval letter or a home loan prequalification, things are more than likely going to fall apart. Yes that can happen with an full DU/LP backed mortgage approval letter (but that is usually for things other than credit). Mortgage pre-approval letters are bad.
Next time, take the extra time to complete the home loan approval process up front to save extra time on the end of the loan. Your experience will be much less chaotic along with more pleasent and joyful.
Is it mortgage fraud to declare income and fail to disclose expenses? I am just wondering. Did the applicant deliberately try to mislead the real estate agent, the mortgage representative, the home seller, and herself?
Here is a single woman trying to buy into the American Dream. Well, the part of the dream that includes owning a home. She declared to the other agent that she wanted to get in on the tax credit before it expired and the agent she had been working with is not responsive to her. Like a flash of lighting the agent has her out looking at homes because the information she provided the mortgage representative would indicate she was eligible to buy a home at a certain dollar value. Heck, with the current inventory of homes available a good agent can negotiate the best deal for a buyer at twenty percent off of the asking price.
The home owner, of course, is not going to "give it away" and will try with his agent to come to an agreeable figure for getting rid of a house they really don't want. And, that is what happened to me two months ago. My listing, my seller, wanted to get the house sold and move on with their lives. Along come the buyer's agent and a pre-qualification letter from a local, reputable, lender. They try hard to get a discount and a concession but we all agree to accept part of the discounted price and let the buyer come up with the closing costs on her own. Seeing that she can do that solidifies the deal for all parties. A buyer with a prequalification letter and money in her pocket to go forward is indeed a wonderful combination to any real estate agent.
There is an attorney review of the contracts, small deposit is transferred to the attorney's escrow account and a second deposit has been deposited. The buyer does a home inspection that reveals the home to be in good repair. The township goes out and issues a Certificate of Occupancy. The sellers have begun to empty the house and then the second shoe drops. The attorney wants to delay the closing because there is a hold up in getting the mortgage. The buyer's agent declares it to be nothing just a routine check of the buyer's tax returns and we need to wait for the IRS to provide documentation. The seller's attorney issues a "time is of the essences" letter giving the buyer ten days to perform and sends me a copy by fax.
Bam! The fax is picked up off the machine by another agent and you will never guess the connection to the story. O.K., so you got it. The agent just so happens to be that "non responsive" agent the buyer ditched. Well, you won't believe the "insider" information I was provided. Wow, you are good.
It turns out the other agent had been working with the buyer for several months. She got her into a rental unit and hooked her up with a mortgage representative that had been working with her to restore her credit. That mortgage representative had declared her to be NOT loan worthy after six months because she had not taken the steps repaired her credit and co-signed a loan for her live in boyfriend to buy a truck to use in a landscaping business he had just started. The real estate agent that was "non responsive" had been sending the boyfriend business cutting lawns of vacant homes and other sellers.
As the saying goes, "No good deed goes unpunished". The agent further explained how she had told the "buyer" that she needed to see a pre-qualification letter prior to taking her out house shopping for a second time because she didn't want to get her hopes up on buying a home only to find out she couldn't get a mortgage for her again. Yes, I will say it again. The other agent had been out with her before found her a house that she had put an offer on and was told by the mortgage representative she did not qualify.
So, did the buyer commit a fraud on the "new" mortgage representative, the "new" real estate agent, and the "new" home seller/victim? Or, does a buyer have the right to expect different results if she leaves out some information?
You can call me! Cell Phone 609-290-7962 Office 609-296-3100
Email NJHomes@hotmail.com or leave a comment here. I will respond.
For Homes on the Jersey Shore..............always www.Ask4Greg.com
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Chuck Ward
Executive Director Florida Mobile Fusion |
Office: 813-388-9181
Email: chuck@floridamobilefusion.com Web Address: http://floridamobilefusion.com
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Foreclosed Homes that were insured by HUD are eligible for no money down mortgages. For literally $100 - $1000 escrow deposit and a pre-approval letter from a lender, you can buy a home like this one and have 0 down payment on the home loan requirements and even 2.49% of the closing costs included. This is not a special program nor will it expire anytime soon
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