chingasaholo Posted August 13, 2003 Report Share Posted August 13, 2003 Well Charles,the Saga of my friends mortgage loan approval continues Today they made an offer on a house without the actual pre-approval. They still have not recieved all the documents for the Loan Officer. The loan officer did fax them a "Opinion Letter" to present to the seller. I'm told this means that the Loan Officer thinks very highly that the loan will be approved. Is this common practice? I've heard of pre-qualifying, is this the same thing...I've been told it's really not worth the paper it's printed on. Just show's you have the income to qualify for buying a house, no credit run, etc...Could you shed some light on this? I just dont want my buddies getting all excited over it and then making a move before they are ready.thanksChing p.s. This mortgage board is a hit......makes the forum complete, you can find almost everything here remotely related to credit Link to comment Share on other sites More sharing options...
firstsource Posted August 13, 2003 Report Share Posted August 13, 2003 This sounds like the same thing as a pre-qual letter. I will send one to someone that I have run credit on and interviewed, and is a normal kind of situation. If it is the least bit odd, property wise etc. I will run it by some lenders and get them to give it their pre-qual, this way I don't cause a problem for the client. Most of the time I even go one step further, and will send it to the lender for an approval from them. They will send a list of conditions that need to be met, and if they are the least bit odd, I know I have a potential problem. From everything you have said about your friends situation, I would also feel certain that they are going to get a loan, but if not an FHA, then for sure an "Alt-A" or a sub-prime loan. They will be able to take care of everything in 2 years time to make them a great prime rate client, which rates are always going to be lower than FHA/VA. BTW: most Sales Agreements include a clause for the buyer that they have 2-4 weeks to get financing. So, if they can not, then they will get their deposit back. Charles Link to comment Share on other sites More sharing options...
chingasaholo Posted August 13, 2003 Author Report Share Posted August 13, 2003 They are working on the contract now, they have been told to provide 1000.00 earnest money and the seller is picking up the bulk of the closing costs. The VA funding fee is financed into the agreement. The payments are going to run them about 1448.00 a month @ 6.38 interest. not sure if this is prime/subprime. The package hasnt gone to the underwriter yet, but it will this week sometime, they still have to get in some more documentation (a cancelled check) then they should be good to go.Hopefully they can get this place, would get them out of a bad situation and improve their finances a bit (the military provides a housing allowance, they'll end up making about 400.00 extra a month after the mortgage and utilities) and they'll own the place they live in. Not such a bad deal! Link to comment Share on other sites More sharing options...
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