mortgage pre-approval question?

Deal Score0

i’m a first time home buyer, my wife is not. she has no negative issues with her last house. i have never had bad credit because i’ve never had any credit until recently when she added me to her credit cards. one which is now paid off and the other with a balance of $ 7,500. were pre-approved for $ 269,000 but only need 218,000 with 7,000 down and 3,000 for closing, both of which will be borrowed from 401k. 401k has 23,000. we bid on 1.1 acres of land for 100,000 plus cut the seller of the land a check for $ 500 which will be applied to settlement costs. 2 weeks later we signed a construction agreement for building the house we picked out. today we go to the bank for the loan application and have to cut another check for $ 350 which from what I understand is non-refundable. my question is are the chances of us getting approved from the lender favorable or not? my wife has excellent credit and i have a little credit now. our gross income is around $ 70,000/year.

  1. Reply
    Big Deal Maker
    February 14, 2011 at 9:54 pm

    First you are borrowing on a construction loan and that should be wrapped into a 30 year fixed rate loan once the home is built including the land purchase.
    The $ 500.00 down on the land purchase is called ernest money and that will need to go into the escrow office for the land to be cleared of any and all liens and incumberances against that land deed.
    The $ 350.00 non refundable check is somewhat puzzling to me. What is it for?
    Will it be locked into anything to do with the building? If it is indeed locked into the building of the home then those funds must go into the escrow as well.
    Anytime you are purchasing property and any funds that change hands it must be cleared thru the escrow.
    Never give a non refundable check or cashiers check without it going into the escrow.
    If the $ 350.00 is for building permits and it is non refundable because if you do not pass the loans needed for the build then it is understandable. However those funds need to go to escrow. If you do not get the loan then the funds must be sent to them by the escrow office. So do not buy into letting any of your funds go without them going into escrow. Question everything and everyone. If you do not like the mortgage lender then shop for a new one. Until you find one you like. Best of luck with your build.

  2. Reply
    February 14, 2011 at 10:08 pm

    Dear djskooby

    The first thing that will help you is… always remember that obtaining a loan is a: process

    You already have your pre-approval, and there are still many hoops to overcome. The lender will still need to review all the documents to support the information that you provided on the loan application. If all meets with their criteria you there should be no problem in getting your loan.

    Best of Luck

  3. Reply
    February 14, 2011 at 10:42 pm

    Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing officemortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.

  4. Reply
    February 14, 2011 at 11:30 pm

    You make $ 70,000 and pay over $ 150 monthly in interest alone on a credit card? Are you idiots? Pay off that card!!!

  5. Reply
    February 14, 2011 at 11:46 pm

    I’m sure your mother knows

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