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Old 05-18-2015, 05:52 AM
 
10,292 posts, read 6,570,645 times
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I wanted to get pre approved for a mortgage, I applied at my local bank first and they gave me a rundown of what costs I was looking for as well as the interest rate and APR. They do not give pre approval letters.

I then went to a mortgage lender and applied there. Looking at the sheet my bank gave me after he ran the numbers I asked him what the APR was.

He said he hadn't been asked that in years and didn't know how to find it. He says people don't ask that nowadays.

Was he just BSing me that people don't ask about the APR?

Anyway I did get a pre approval letter from him.
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Old 05-18-2015, 07:06 AM
 
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Run, don't walk, from these two lenders. Refusing a preapproval letter is a red flag, as is a refusal to give the APR up front. The APR is what lets you compare the total cost of a loan from one lender to another, when you factor in both interest rate and fees. I would never go with lenders who are not completely transparent during the initial contact. In my view that makes it much more likely that you will have major issues with them during underwriting and closing.
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Old 05-18-2015, 07:25 AM
 
Location: NC
6,082 posts, read 7,085,518 times
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Do you not know the meaning of the abbreviation or did the bank/lender not have the numbers available.

Annual percentage rate - Wikipedia, the free encyclopedia
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Old 05-18-2015, 08:24 AM
 
Location: Southern California
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It is not an odd question, it is an odd answers.
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Old 05-18-2015, 08:30 AM
 
10,292 posts, read 6,570,645 times
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Quote:
Originally Posted by luv4horses View Post
Do you not know the meaning of the abbreviation or did the bank/lender not have the numbers available.

Annual percentage rate - Wikipedia, the free encyclopedia
He was checking on the computer and claimed not to know where the number was, and claimed that he is never asked that question. Perhaps the numbers did not calculate until he printed the pre approval letter.

It did come out on the pre approval letter as an estimated APR.

Part of the confusion was that the bank loan officer told me it was APY, not the same guy as the one who couldn't find the rate..
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Old 05-18-2015, 10:57 AM
 
19 posts, read 63,833 times
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Do you really want to work with a loan officer who is not completely on top of his or her game? There are plenty of lenders to go around who have their act 100% together.
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Old 05-18-2015, 02:51 PM
 
10,292 posts, read 6,570,645 times
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Quote:
Originally Posted by KrischiDe View Post
Do you really want to work with a loan officer who is not completely on top of his or her game? There are plenty of lenders to go around who have their act 100% together.
I don't have a high income and I am looking for a lower priced home, in fact some lenders won't lend the amount below the amount I want. Once I do find a home I will look for other lenders. I'm waiting to hear back from my bank, they claim to be behind, and I would almost rather deal with a lender who is more diligent at getting things done quickly.


But my credit is excellent over 800 with all 3 bureaus. I got a good rate quote too. I"m applying for an FHA loan.
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Old 05-18-2015, 03:01 PM
 
2,497 posts, read 1,741,167 times
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APR's are based entirely first and foremost, on your assets, then, your predicted ability to pay, and total mortgage amount, based on what they predict you'll be able to pay, I think these days they figure it for the next 10 years. Important to note.... "The next ten years" today has become highly unpredictable!


A real mortgage officer working for a believable bank, issuing pre-approvals believable to the seller, should give you the APR which will be based on your credit/asset amount, and of course, on what specifically, how much you want to borrow. This is not uniformly done these days because they get money out of you in the process.

OK, so... You want to be pre-approved, but you apparently have not yet contacted the right lender. Contact someone else - maybe 4 or 5 additional lenders. It's a goofy business these days and you must pay attention. They won't necessarily tell you "no" but the pre-approval really doesn't actually exist! Capiche?

"Pre-approvals" these days often wind up to be useless and people (all too often) find that out too late.

Last edited by TwinbrookNine; 05-18-2015 at 03:16 PM..
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Old 05-18-2015, 03:13 PM
 
10,292 posts, read 6,570,645 times
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Quote:
Originally Posted by TwinbrookNine View Post
APR's are based entirely on your assets, your predicted ability to pay, and total mortgage amount, based on what they predict you'll be able to pay, I think these days they figure, for the next 10 years.

A real mortgage officer working for a believable bank, issuing pre-approvals believable to the seller, should give you the APR based on your credit/asset amount, and on what specifically you want to borrow. This is not uniformly done these days because they get money out of you in the process. You want to be pre-approved, but you apparently have not yet contacted the right lender. Contact someone else - maybe 4 or 5 additional lenders. It's a goofy business these days and you must pay attention. They won't necessarily tell you "no." Capiche?

"Pre-approvals" these days often wind up to be useless and people (all too often) find that out too late.
Thanks for the info. Pre approvals are great, I would have never thought I qualified, but apparently I do. Also I called around before I got one and the agent told me that she would not show me the property unless I had a pre approval letter. Now that I have it, I don't even want to look in her area. She was rude about it too. She's not even in a competitive market or area. Where I did go look the agents were nice and I can find something in my price range, and I was not asked for pre approval or to show proof of it. It's a buyers market there I guess.
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Old 05-18-2015, 10:01 PM
 
Location: MID ATLANTIC
7,613 posts, read 17,701,727 times
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Wow, you've found some real winners! Keep looking, you will find someone that cares and takes pride in their work. Throw the lot out and start fresh.
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