Pre approval for a mortgage

Hyacinth Bucket · 07-18-2008, 04:38 AM

Hi can anyone help me.

I am not familiar with the banking regulations in Florida, if I am pre-approved for a mortgage, put money down on a house based on my pre approval - can the pre approval be revoked?

Second part of the question - if the pre approval is revoked, and I can not get my mortgage, will the monies I put down on a house in TV (based on my pre approval for a mortgage) be returned to me?

HB

Donna · 07-18-2008, 05:06 AM

HB...

From what I know..They can revoke a pre-approval any time they choose, if they have grounds..

You will loose the down money, unless you can get a mtge from another bank...

I believe these facts are correct...Just ask Kathi or me...LOL

Hyacinth Bucket · 07-18-2008, 05:10 AM

Donna, what type of grounds are you referring to?

HB

Donna · 07-18-2008, 05:26 AM

One example...the appraisal on the house being too low to support the colateralization of the loan.

There are many others, today is very difficult to get a loan..

Fourpar · 07-18-2008, 03:10 PM

Writing a contract with The Villages' agents "based on a loan approval letter" is an anomaly. The standard Villages contract does not contain a "contingent on loan approval" clause. The Villages write contracts that commit you to close on X date. So if you need a mortgage to do that, you should make darn sure you will be able to get one, 'cause The Villages are expecting to close on the appointed date. period.

At least that is the way they were when I contracted for our purchase in May, '07. I couldn't believe how arrogant they were about that. Even talked to the manager of the contracting division about it before I signed our contract. The manager told me that they wouldn't allow that kind of a clause, and were willing to let me walk away over the issue!

I have been in the real estate business in Florida for 18+ years, and this is the first contract I have seen that did not (and they would not accept) a Financing Contingency clause. It is pre-printed on every contract I have seen, be it a BAR Association, REALTOR Association or Office Depot form. But not The Villages!

Donna · 07-18-2008, 03:29 PM

If you don't get the mtge by closing date, there are also penalties..Can't catch a break...LOL

Hyacinth Bucket · 07-18-2008, 03:37 PM

fourpar, question - what happens if you get the pre approval letter from a bank other than TV banks?

Do you know if all the banks and mortgage lenders follow TV in this?

I am not in real estate and am baffled by what I have been learning.

Thanks,

HB

Hyacinth Bucket · 07-18-2008, 03:38 PM

Donna what do you mean?

Quote:

Originally Posted by Donna

If you don't get the mtge by closing date, there are also penalties..Can't catch a break...LOL

What kind of penalties - I assume you mean financial ones.

HB

Donna · 07-18-2008, 03:47 PM

Yes HB..financial penalities...They have you right where they want you...

Hyacinth Bucket · 07-18-2008, 03:49 PM

Donna, are the financial penalties just related to not being able to close on a specific date or are there others?

HB

Donna · 07-18-2008, 04:01 PM

I would have to read the contract..I think thereare others..

KathieI · 07-18-2008, 04:03 PM

Quote:

Originally Posted by Donna

If you don't get the mtge by closing date, there are also penalties..Can't catch a break...LOL

OK, let me chime in, since its so fresh in my mind....

This comment is taken from one of the forms I received about my closing date.
"If you obtain your mortgage from a financial institution outside The Villages, please make sure your lender can meet your closing date so you can close on time and without penalty.....

It goes on and on and in the interest of space and my time typing it, if anyone is interested, pm me and I'll be happy to type it for you.

Bottom line they do penalize the buyer if the closing date established by The Villages isn't met on time.

Fourpar · 07-21-2008, 06:14 PM

Hyacinth,

It is a matter of contract, actually. Regardless of the lender you use, the contract terms (between Buyer & Seller) are the same. And if it is a Villages contract form, the term mortgage or loan is not (at least it wasn't in 2007 when I bought) addressed at all. Now, there is a closing date on the contract, and that is when you agree to close. If you cannot, because of financing or other reasons, then it may be considered a breach, and there are penalties.

Again, on Villages contract form, it matters not a whit to them if you are borrowing the funds to purchase. So any lender you use had better be able to close...on time! And with reputable lenders, that isn't a problem. They know what they have to do and when. And unless there is a credit issue, or some other factors they need information or documentation on, it should not be a big deal.

If you shop (online particularly) about for the absolute lowest rate, I caution you to be sure you know who you are dealing with. Many of the online shops are 1 person shows and merely brokers as opposed to bankers. There is a big difference. Some are better than others, but its often hard to separate the good and not so good long distance. My advice is do business with who you know, and be very "questioning" about progress with loan application and underwriting.

Hope this helps, rather than adding more confusion to the mix...

Hyacinth Bucket · 07-21-2008, 06:29 PM

Thank you everyone for all of your help.

Not to sure what we will do but at least I have more knowledge.

HB

GatorFan · 07-21-2008, 11:32 PM

Just get your mortgage through The Villages owned mortgage company and you should not have a problem.

Pre approval for a mortgage

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