Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Interesting......a change in an investor guideline that may limit a clients ability to close is of major concern, and a good agent knows that in this instance that pre-approval isn't a pre-approval, it's a prequal. And that my friend, is a major difference.
Is it a pre-approval if the file has been totally through underwriting (not just automated) and approved, but not locked while waiting for offer acceptance? During that time investor guidelines could easily change and now it's not a pre-qual or pre-approval.
We can't foresee what the changes are going to be and they have been coming in faster than ever.
Freddie Mac just recorded a $2BILLION quarterly loss and it sounds like there will be plenty more where that came from. What if Fannie & Freddie imposed an immediate change in guidelines saying they are no longer going to accept DTIs over 45% period. Investors could come out and say for all loans not locked as of xx/xx/xx we will not accept DTI over 45%. Do you know how many PRE-APPROVED borrowers who have been out shopping for months and writing contracts all with pre-approval letters would now be instantly ineligible? Or, were they all really just pre-quals to start with as you say?
If if were a fifth we'd all be drunk right now....and while the game of semantics may provide extreme pleasure for those who keep score with four lines and a slash, I prefer to say you win and I'll keep pre-approving clients in a way that best serves their needs, my time and gets us all to closing.
If if were a fifth we'd all be drunk right now....and while the game of semantics may provide extreme pleasure for those who keep score with four lines and a slash, I prefer to say you win and I'll keep pre-approving clients in a way that best serves their needs, my time and gets us all to closing.
adieu, but I'm sure you prefer adiós!
Whatever runs your clock. As I said when this all started we have never lost a buyer on the mortgage issue. So whatever it is we do we will continue to do as well.
That however was not really the point. There appears to be a fable among those that represent sellers and which is in turn transmitted to the seller, that there exists some form of approval or pre-approval that vastly surpasses all others and guarantees that the bank will close.
It is simply untrue. What actually is important is that the RE Agent know his clients situation and that it can work. And even then there is some chance it will crash...Murphy worked in the RE Industry.
Freddie Mac just recorded a $2BILLION quarterly loss and it sounds like there will be plenty more where that came from. What if Fannie & Freddie imposed an immediate change in guidelines saying they are no longer going to accept DTIs over 45% period. Investors could come out and say for all loans not locked as of xx/xx/xx we will not accept DTI over 45%. Do you know how many PRE-APPROVED borrowers who have been out shopping for months and writing contracts all with pre-approval letters would now be instantly ineligible? Or, were they all really just pre-quals to start with as you say?
God I almost had a heart attack the first Tme I read this. We are closing friday and have all of the pay off fgures. we willnot accept DTI over 45%
What does that mean?
God I almost had a heart attack the first Tme I read this. We are closing friday and have all of the pay off fgures. we willnot accept DTI over 45%
What does that mean?
Not to fret. It was a hypothetical.
DTI=debt to income ratio
Good luck on the closing.
God I almost had a heart attack the first Tme I read this. We are closing friday and have all of the pay off fgures. we willnot accept DTI over 45%
What does that mean?
First, let me point out that the post about the 45% DTI was someone's question about a hypothetical situation. Not the current reality.
DTI stands for Debt To Income. How much long term debt are you obligated to pay, as a percentage of your monthly income. Your loan person (whether it was a banker or a broker) likely went through this with you before you got approved for your mortgage loan. If your employment situation hasn't changed, you PROBABLY have nothing to worry about here. Of course, I don't know that for sure, so just to cover my butt (and my Brokers) I'll suggest you call your loan guy to be sure.
First, let me point out that the post about the 45% DTI was someone's question about a hypothetical situation. Not the current reality.
DTI stands for Debt To Income. How much long term debt are you obligated to pay, as a percentage of your monthly income. Your loan person (whether it was a banker or a broker) likely went through this with you before you got approved for your mortgage loan. If your employment situation hasn't changed, you PROBABLY have nothing to worry about here. Of course, I don't know that for sure, so just to cover my butt (and my Brokers) I'll suggest you call your loan guy to be sure.
Nothing to worry about. We would never buy a home if we had to make that big of streach. Even with two homes we are at a bit under 30%.
Just about every post in this thread has been about financing.
Qualifying is not just about financing.
You could have a billionaire walk in the office and want to look at houses but this does not make them a qualified buyer.
How soon are you looking to move in?
How long have you been looking?
If we find you the right property would you be ready to buy it?
Qualifying has to do with determining motivation not their personal wealth.
Just about every post in this thread has been about financing.
Qualifying is not just about financing.
You could have a billionaire walk in the office and want to look at houses but this does not make them a qualified buyer.
How soon are you looking to move in?
How long have you been looking?
If we find you the right property would you be ready to buy it?
Qualifying has to do with determining motivation not their personal wealth.
Good post, good point. There is more than one kind of qualifying out there. The answer is still yes.
Does anyone else ask the magic question: "If we find the right home today, are you prepared to make an offer?"
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
