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Old Yesterday, 07:41 AM
 
116 posts, read 58,350 times
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We've been looking for homes in our area for the last couple of months and have a pretty clear idea of the neighborhoods we're interested in.

We are a bit apprehensive about getting preapproved and having it expire if we don't find a home in time (I'm assuming you have to go through the process all over again? and then also have a hard credit pull again? or am I wrong on that?)

Anyway - we're looking for a set of "must haves" that don't come around often, and the neighborhoods we're interested in seem to have somewhat low inventory/turnover. At the same time, for those very same reasons we want to be ready to move quickly if/when the time comes.

What should we do?

Thanks all.

Last edited by ginan; Yesterday at 08:22 AM.. Reason: Meant preapproved where I said prequalified
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Old Yesterday, 07:51 AM
 
Location: Just south of Denver since 1989
10,982 posts, read 29,671,037 times
Reputation: 7230
#1 Get pre-approved.

That way you are contracting writing ready, when you find “it” whenever that happens.
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Old Yesterday, 08:02 AM
 
Location: Florida -
8,922 posts, read 11,107,343 times
Reputation: 17336
Pre-approval is good in a seller's market where homes are often getting multiple bidders. Also, for those who have some question about how much house mortgage they will qualify for. Pre-approval might also accelerate the closing process (?) - Pre-approval means you've already been approved for a specific loan amount.

"Pre-qualification" is only the first step in the mortgage approval process and doesn't really mean much, except that you have a banking relationship and some financial resources. It does indicate to the seller that you are a serious buyer and have a better probability of mortgage approval than someone who has not been "pre-qualified."
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Old Yesterday, 08:11 AM
 
Location: The Triad (NC)
29,241 posts, read 63,558,470 times
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Quote:
Originally Posted by ginan View Post
Should we get pre-qualified?
Absolutely. And whatever number they imply you qualify for? Plan to spend considerably LESS.
Quote:
We've been looking for homes in our area for the last couple of months - we're looking for a set of "must haves"
What should we do?
Stop wasting your time on homes you 'like' ...until you settle on the hard number of what you can actually afford.
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Old Yesterday, 08:24 AM
 
116 posts, read 58,350 times
Reputation: 38
Thanks all.

And thanks JGHorton - I had actually used the opposite terms of what I wanted/meant.

I was considering getting PREAPPROVED - but concerned about the hard pull, not finding a home in time, etc.

It seems at the very least we should get prequalified...

JGHorton - not sure what kind of a market we're in...one house we looked at sold in 10 days, the other one in 17. How can I figure out what kind of a market we're in?
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Old Yesterday, 08:39 AM
 
Location: Florida -
8,922 posts, read 11,107,343 times
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The "market" is largely determined by how long houses are sitting on the market before selling; and, in a really 'hot' market, if many are selling above asking price, with multiple bidders. You can often tell this through MLS listings (ie; how long houses are sitting on the market).

If the two homes you referenced 'recently' selling in 10 and 17-days are in the same neighborhood/ area and similar to home/s you are considering, you may be in a seller's market (... or a coincidence). This means there are fewer houses than buyers and you will likely pay a higher price.

OTOH, school has just started, which generally signals the end of the spring/summer market. This is important for you to know as part of your own offer and negotiation process, so ask a couple of local realtors what trends they are seeing -- and if the post-school market has slowed considerably.
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Old Yesterday, 08:48 AM
 
116 posts, read 58,350 times
Reputation: 38
Quote:
Originally Posted by jghorton View Post
The "market" is largely determined by how long houses are sitting on the market before selling; and, in a really 'hot' market, if many are selling above asking price, with multiple bidders. You can often tell this through MLS listings (ie; how long houses are sitting on the market).

If the two homes you referenced 'recently' selling in 10 and 17-days are in the same neighborhood/ area and similar to home/s you are considering, you may be in a seller's market (... or a coincidence). This means there are fewer houses than buyers and you will likely pay a higher price.

OTOH, school has just started, which generally signals the end of the spring/summer market. This is important for you to know as part of your own offer and negotiation process, so ask a couple of local realtors what trends they are seeing -- and if the post-school market has slowed considerably.
The homes were in the same neighborhood just a couple of blocks from each other...

I am deducing by your answer that spring/summer market considered the "busier" selling season.

Will realtors just answer those questions for me, even if I'm not working with them?
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Old Yesterday, 08:53 AM
 
4,871 posts, read 12,111,544 times
Reputation: 3573
Quote:
Originally Posted by ginan View Post
Thanks all.

And thanks JGHorton - I had actually used the opposite terms of what I wanted/meant.

I was considering getting PREAPPROVED - but concerned about the hard pull, not finding a home in time, etc.

It seems at the very least we should get prequalified...

JGHorton - not sure what kind of a market we're in...one house we looked at sold in 10 days, the other one in 17. How can I figure out what kind of a market we're in?
Why are you so concerned about getting a “hard pull” on your credit?
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Old Yesterday, 09:02 AM
 
116 posts, read 58,350 times
Reputation: 38
Quote:
Originally Posted by TimtheGuy View Post
Why are you so concerned about getting a “hard pull” on your credit?
Because it's a hard pull? Lowers credit score? etc.?
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Old Yesterday, 09:03 AM
 
Location: Raleigh NC
10,106 posts, read 7,576,478 times
Reputation: 8685
you shouldn't have concerns - though naturally any folks unfamiliar with the process are concerned - about the preapproval process.

If you're pre-approved today by a reputable local lender (don't use BofA or Wells), then you'd be pre-approved if it expires UNLESS your situation changes negatively.

A mortgage lender's credit pull for preapproval is NOT going to affect your credit score. You need 1 preapproval. if later on (once you find a house), you want to compare programs among different lenders, that's wise too. But you only get pre-approved by 1.


You've done 1 important part - determined a location.

Presumably, you know these neighborhoods are in your price range through some other method (an online calculator?)

You need some general house qualifications - you've done that.
You need to get a real prequalify/preapproval.
You need to find a Realtor.

After you do these 3 things, THEN you're ready to "shop" for houses. And so the ? becomes - if THE house comes up next week, will be ready?
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