Approved in Minutes...........

FL Knifemaker · #1 09-23-2008, 12:15 PM

Why do the TV and online mortgage company ads say that?? How the HELL can you be approved over the phone when you need to provide mountains of paperwork,proof of earnings, tax returns, bank statements, etc., etc.....?? What the HELL is the use of being PRE aproved if you still have to provide all the information and PROOF of earnings, etc., needed before you would get a mortgage?? What FOOL would go house shopping on a PRE aproval??

And....... they STILL advertise this after the recent and ongoing economic disaster.

I've been through the process many times and have a pretty damn good line of credit. I could combine the credit limit on 3 cards and buy a damn nice home but I STILL couldn't get appoved over the phone, in minutes for a mortgage

If you have a HUGE income and line of credit good enough to get an instant approval, you probably wouldn't need a damn mortgage

The credit system and business is totally WHACKED

RWP · #2 09-23-2008, 12:18 PM

Could be due to the recent credit problems in our country. A month ago anyone could get a $500K loan without even having a job, now no one gets a loan!

MakiSupaStar · #3 09-23-2008, 12:19 PM

Turn the tv off.

cheesemonkey · #4 09-23-2008, 12:20 PM

i don't know... maybe you should call one of those numbers and ask them yourself

heroincredible · #5 09-23-2008, 12:29 PM

I imagine if you actually phone them, some guy will just tell you that he approves of you.

Mark Latimour · #6 09-23-2008, 12:56 PM

The way it works here (and in Australia) with pre-approval is that the lender will tell you basically, if everything checks out (ie your credit, income etc) that you give in the pre-approval disclosures, then we will lend you $amount. Its useful because then you can go and look at houses within the range with a max of your pre-approval amount assuming that the information you gave to the lender was correct and you have good credit. Not sure if it differs in the US, but its a pretty sensible system here and it allows you to know what you could borrow (if you disclose honestly) without having to go through lots of paperwork. You just need to be sure your actual documents / records back up what you tell the lender pre-approving you.

MJ5150 · #7 09-23-2008, 01:10 PM

There is a big difference between being pre-approved and being pre-qualified. I think those ad's are a play on words because all you get from that brief conversation is pre-qualified.

For those that don't know, a pre-qualification is just an amount the lender feels you could afford based on the truthful information you have provided them. This process takes all of about two minutes in most cases.

-Mike

rokkitt · #8 09-23-2008, 01:15 PM

Quote:

Originally Posted by Mark Latimour

The way it works here (and in Australia) with pre-approval is that the lender will tell you basically, if everything checks out (ie your credit, income etc) that you give in the pre-approval disclosures, then we will lend you $amount. Its useful because then you can go and look at houses within the range with a max of your pre-approval amount assuming that the information you gave to the lender was correct and you have good credit. Not sure if it differs in the US, but its a pretty sensible system here and it allows you to know what you could borrow (if you disclose honestly) without having to go through lots of paperwork. You just need to be sure your actual documents / records back up what you tell the lender pre-approving you.

realtor or motgage guy

Quote:

Originally Posted by MJ5150

There is a big difference between being pre-approved and being pre-qualified. I think those ad's are a play on words because all you get from that brief conversation is pre-qualified.

For those that don't know, a pre-qualification is just an amount the lender feels you could afford based on the truthful information you have provided them. This process takes all of about two minutes in most cases.

-Mike

realtor or mortgage guy

I am a realtor in NYC, and I agree.....

it is to give you an idea of the amount , you jump thru hoops with all the paperwork, (which you can keep in a safe file and update every year if you wanted....add you W2's and tax returns to that file)

they verify, and then you are approved

but the initial qualification takes minutes

big al

hbarcat · #9 09-23-2008, 02:04 PM

A whole new subdivision went up over the past few months just a couple of miles from my house and now they're trying to get people to move in. A big sign by the road says, "NO DOWN PAYMENT -- LOW MONTHLY PAYMENT"

Are these people not paying attention to what's going on???

**Pacman** · #10 09-23-2008, 03:05 PM

It took me 15 minutes (both times) to be approved to buy my house(s). My company hasn't been hurt at all by the current mess, either.

FL Knifemaker · #11 09-24-2008, 10:02 AM

Quote:

Originally Posted by Pacman

It took me 15 minutes (both times) to be approved to buy my house(s). My company hasn't been hurt at all by the current mess, either.

That's amazing. It takes longer than that for them to pull me up on the computer

MJ5150 · #12 09-24-2008, 10:05 AM

Quote:

Originally Posted by Pacman

It took me 15 minutes (both times) to be approved to buy my house(s). My company hasn't been hurt at all by the current mess, either.

Hehe, nope, they haven't.

From what I can tell, VA loans are just as easy to get.

-Mike

CapnSev · #13 09-24-2008, 12:31 PM

Quote:

Originally Posted by hbarcat

A whole new subdivision went up over the past few months just a couple of miles from my house and now they're trying to get people to move in. A big sign by the road says, "NO DOWN PAYMENT -- LOW MONTHLY PAYMENT"

Are these people not paying attention to what's going on???

The real idiots are the ones still buying into this crap IMO.

MJ5150 · #14 09-24-2008, 02:07 PM

Quote:

Originally Posted by hbarcat

Are these people not paying attention to what's going on???

If a guy/gal is financially stable, I don't see how buying a house right now is a bad idea. Some financial people I have heard are saying that if you are financially stable, this is the time to buy. A guy can get some sweet deals in the Seattle area right now.

-Mike

Hawaii Islander · #15 09-24-2008, 02:26 PM

This is definitely a buyer's market right now. Getting approved for a loan in the amount you want is the difficult part.

One of the reasons for the bailout is to get lenders to free up capitol for new home buyers again. The housing (including new home construction starts) market has stalled out in a lot of areas. This is one of the major contributors (along with ever increasing loan defaults) that lead to the current banking/investment crises. A declining job market (rising unemployment) also accelerated and exacerbated the problem. So says the media (and finance gurus).

**Pacman** · #16 09-24-2008, 03:08 PM

Quote:

Originally Posted by MJ5150

Hehe, nope, they haven't.

From what I can tell, VA loans are just as easy to get.

-Mike

I wouldn't know - I've never used my VA certificate. VA loans tend to be a bit higher in interest. I got my mortgage through USAA.

MJ5150 · #17 09-24-2008, 09:40 PM

Quote:

Originally Posted by Pacman

I wouldn't know - I've never used my VA certificate. VA loans tend to be a bit higher in interest. I got my mortgage through USAA.

In the last couple months, three different older guys I know were able to snap their fingers and get some killer loans from the VA. They are all retired military. Two of them are moving across the country and bought homes where they are moving. The other guy is staying here in town.

-Mike