OfflineHowdy,
I had a question about getting pre-approval from a bank. Decided I wanted to get a loan to cover my first house, my first call was to a broker that had a great deal of banks he can run me though in one credit pull.
I also checked into my own bank to pull a VA loan since there is no down payment or anything needed. My bank charges 250 dollars to get the process started.
250 right now would break me or atleast take a few months to get together, I wanted to know is it normal to have a fee when going though a process with a bank on getting a mortgage?
Also if i do go though a broker would it just be free to do and they take their cut once the house is bought as in part of the closing cost?
Thanks in advance, I just wanna clear up my understanding of getting a basic loan to buy a house as my credit score is fairly high 700's and i've never really used credit as a means to buy a house.
David
What does the $250 include? Usually there is not a cost to get started, unless they charge for the credit report. The broker is paid at closing, it is part of the closing cost as you stated. You will need to plan on paying for an appraisal once you find a property, which is about $350 and that should be your main cost.
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I have been in the mortgage industry for over a decade, and you should never pay for an upfront application fee. You also should not pay to have someone access your credit. There are days I will pull 5+ credit reports and never once is a borrower charged, it is a cost of me doing my business.
If you go VA, be careful about the conditon of the home. VA appraisers are very thorough and most lenders will not allow you to close until the repairs requested by the appraiser are completed. If you are buying it to live in, then there thoroughness is a good thing, but if this is a potential flip, you may want to steer away from VA financing.
JT
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
If you can't afford $250 right now, how are you going to make the loan payments?
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
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There are about 29 ways in to pull it off in dean's last book.........
You make it sound like you're looking for financing for a home to live in then you ask me if I'd read Dean's books.
1 - You mention about the VA loan, you can't use it for investing, it's only for those who intend to live in the property they purchased with it.
See: http://www.veteranloancenter.com/handbook/va_loans_investment_property.h...
2 - Yes, I have read Dean's books, which is why I'm wondering why you are looking for pre-approval. If you can't afford $250 for a few months, what do you have that the banks will give you a loan? Why are you going through the banks in the first place?
What is your strategy?
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
Real Estate Glossary - Click Here for PDF
View My Everyday Blog - Click Here