Pre-Qual or Pre-Approve again from Seller??

ty_lees · Joined: 22 Apr 2008 Posts: 6 3.77 Dollars($)

My wife and I are buying a home, and we have already been pre approve by BOFA. Now we are buying a fore-close home for a great deal and we are first time buyers. The seller’s agent wanted us to pre-approve again through Countrywide a company they used. My questions is, I don’t see the point when I’m not using Countrywide and/or already been PRE-APPROVE. Can someone explain why??

kpatrick · Posted: Tue Apr 22, 2008 8:51 pm Post subject:

Hi Ty_lees,

My guess is that the mortgage on the subject property is with Countrywide...if they can keep the business, then they don't lose so much. Does your contract require you to use their lender?

Another possibility is that the Realtor works with a Loan Officer who happens to work for Countrywide. That way they can get the opinion of someone they trust to make sure the deal will close, versus taking the word of a lender they have never worked with.

Either way, the key is what is in your contract...if the seller paying closing costs is contingent upon you using their lender, then you might decide it is worth the savings and go with Countrywide.

Good luck!
Kim

Caron · Posted: Wed Apr 23, 2008 5:16 am Post subject: RE:

Hi tylees,

I agree with Kim here. Whichever lender/company you go for, important is to know what's written in your contract and see that you don't violate it and incur a penalty.

Good luck

Posted: Wed Apr 23, 2008 12:05 pm Post subject:

Thanks for the reply guys. My approve loan that I have currently is with BOFA. I even locked it down to 5.7% 30 yr fixed w/ 20% down. Im pretty sure its a go with BOFA. As for Countrywide, have you seen the site "COUNTRYWIDE SUCKS".. this site will go in detail NOT to use Countrywide. Anyhow, my offer includes paying all fees and closing cost. All I really want is my offer to be accepted and I’m trying to making it as clean as possible. I’m offering 15k below what they are posting.

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi tylees,

Now you should talk with the seller that you are comfortable with BOFA and will like to go with them otherwise you will not buy the property. Talk with the agent or you can even change the agent.

BTW have you checked the contract? Is it that you will have to take the mortgage from the Countrywide?

Feel free to ask if you have any further questions.

Best of luck,
Larry

gmakerley · Posted: Thu Apr 24, 2008 6:16 am Post subject:

if your real estate contract was written to require that you obtain your mortgage from countrywide, then you never should have signed it. i cannot imagine that sort of clause having been inserted in the contract for sale without your having seen it. it would be ridiculous for that to have taken place.

i also think it is ridiculous for the selling realtor to "require" that you be preapproved by countrywide. you've been to a valid mortgage lender, obtained preapproval, and - as you noted - you've already locked in your favorable interest rate.

this property seller and the realtor need to get a life, in my opinion. they are clearly making things far more difficult for you than ought to be necessary.

your contract will require that countrywide approve of the sale, inasmuch as you're looking at a short sale, no doubt. that is typical and perfectly logical. are you sure this isn't what they have mentioned to you, and you may have misinterpreted?

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