Wednesday, February 4, 2009
Why Can I Afford More House?
Dear Sue
My agent suggested that my husband and I get preapproved for a loan so we could purchase our first home around September of last year.
The lender we contacted told us we qualified for an FHA loan in the amount of $200,000. After getting prequalified and writing several offers that were not accepted, we decided to take a break during the holidays.
In the meantime, our loan preapproval expired so we decided to re-up our loan approval in January 2009.
After the process we have now been approved for $265,000.
What’s the deal? We are happy that we have been approved for the higher amount, but we thought it might be a scam even though we aren’t using any “fly by night” company. The lender is Wells Fargo!
What’s the deal?
Mr. & Mrs. Preapproved
Dear Mr. & Mrs. Preapproved
I think that one of the main reasons was that the interest rates were higher in September. Other reasons could be an increase in your income or a reduction of your debt. Maybe there was some positive factor in your application that your first lender missed.
I have found that many buyers are surprised by what they can buy today.
The buyers that are not afraid by what they see and hear on the news every day are in for a sweet surprise when they pay a visit to their lender.
They are amazed at how much home they can buy.
Many buyers are discovering that their payment is almost equal to their rent.
Today’s low prices and low interest rates are a historical phenomenon. I applaud you for taking advantage of some of the best buying conditions of the last eighty years and taking the step toward your first home.
Dear Sue
I built a home for resale in 2005. When I started my construction little did I know that we were at the top of the market.
I was unable to sell for over a year. After many months, I gave up and took my home off the market.
I have been very lucky to have had a good tenant.
Now he has given notice. I cannot carry two mortgages. I am afraid that I owe more than my home is worth. I don’t know where to begin.
Signed
Sad Seller
Dear Sad Seller
You are not the only one is this situation. Many people were taken by surprise when the market began tumbling. In fact, he depth and the duration have surprised us all.
Anyone who leveraged his or her purchases or refied until all the equity was gone from 2003 to present, has the potential to be in trouble.
My number one suggestion would be to call your lender and request a work out package, loan modification or short sale. Do this immediately! The sooner the better!
Working directly with your lender can be a Matter of Good Home $$s and Sense.
My agent suggested that my husband and I get preapproved for a loan so we could purchase our first home around September of last year.
The lender we contacted told us we qualified for an FHA loan in the amount of $200,000. After getting prequalified and writing several offers that were not accepted, we decided to take a break during the holidays.
In the meantime, our loan preapproval expired so we decided to re-up our loan approval in January 2009.
After the process we have now been approved for $265,000.
What’s the deal? We are happy that we have been approved for the higher amount, but we thought it might be a scam even though we aren’t using any “fly by night” company. The lender is Wells Fargo!
What’s the deal?
Mr. & Mrs. Preapproved
Dear Mr. & Mrs. Preapproved
I think that one of the main reasons was that the interest rates were higher in September. Other reasons could be an increase in your income or a reduction of your debt. Maybe there was some positive factor in your application that your first lender missed.
I have found that many buyers are surprised by what they can buy today.
The buyers that are not afraid by what they see and hear on the news every day are in for a sweet surprise when they pay a visit to their lender.
They are amazed at how much home they can buy.
Many buyers are discovering that their payment is almost equal to their rent.
Today’s low prices and low interest rates are a historical phenomenon. I applaud you for taking advantage of some of the best buying conditions of the last eighty years and taking the step toward your first home.
Dear Sue
I built a home for resale in 2005. When I started my construction little did I know that we were at the top of the market.
I was unable to sell for over a year. After many months, I gave up and took my home off the market.
I have been very lucky to have had a good tenant.
Now he has given notice. I cannot carry two mortgages. I am afraid that I owe more than my home is worth. I don’t know where to begin.
Signed
Sad Seller
Dear Sad Seller
You are not the only one is this situation. Many people were taken by surprise when the market began tumbling. In fact, he depth and the duration have surprised us all.
Anyone who leveraged his or her purchases or refied until all the equity was gone from 2003 to present, has the potential to be in trouble.
My number one suggestion would be to call your lender and request a work out package, loan modification or short sale. Do this immediately! The sooner the better!
Working directly with your lender can be a Matter of Good Home $$s and Sense.
# posted by Sue Thompson @ 11:40 AM 
Subscribe to Posts [Atom]
