Help with Pre-Approval BS.

[amdhunter]

I'm looking to buy a place soon, and I just started talking to an agent about getting a preapproval.

I haven't done anything yet, but he she is spilling BS about me having to get a variable rate since I am a first time buyer, and it would be very hard to avoid it.

This is despite me successfully paying off a car loan, paying off 2 car lease loans, I have ~50k in credit with only $400 tied up, and one current car payment that I plan to pay off so I can use my entire paycheck towards living nice. Last I checked my credit score was 794 back in March.

Is this first time buyer variable loan bullshit? If so, how can I report her for unfair practices. I didn't let her have any of my information and I won't be going there again. It was a REMAX office.

Would going to a bank directly help me any better, instead of relying on bullshit Real Estate agencies?

 

[CrackRabbit]

Any of the big banks (Wells Fargo, Chase, BoA) should be able to get you pre-approved.

And find another Realtor, they are a dime a dozen and the one you have is crap.

 

[olds]

Big red flag.
Find someone that knows what they are talking about.

 

[OCGuy]

Wow...that is just bad...and completely untrue.

Going directly to a bank has draw-backs and advantages over a broker. For buying a home, I would say the main draw back is they take forever to get anything done, so you would probably blow by a 30 day escrow.

 

[SpatiallyAware]

She is probably friends with a broker selling those loans. Get a new realtor.

 

[waggy]

the first realtor we had tried to pull a lot of bullshit like that. walk away and find another one.

if you are not 100% happy with them walk away. there are a lot out there and one will be a good fit.

 

[IndyColtsFan]

Did the realtor also refer you to a specific place for financing? If so, he/she may be getting kickback from recommending variable rate. Don't do it.

 

[HardcoreRobot]

why are you talking to a REAL ESTATE agent about your finances? Talk to a mortgage broker.

 

[Capt Caveman]

Think buying a place in the ghetto will give more street cred?

 

[ichy]

Your realtor is retarded. I bought my first home about a year and a half ago, I had no problem getting a conventional, 30-year fixed interest rate loan. The only thing I would've had problems with was PMI, but I put 20% down so that was a non-issue.

 

[rh71]

bah RE agents... they're on your side trying to negotiate for you yet they make a living on the % you buy it for.

We sold and then bought with a good one, remain friends with her, but their whole purpose annoys me.

 

[consolibyte]

We just bought a home (actually we're closing next Friday) and had no problems getting conventional fixed rate loan pre-approvals from *several* different banks.

 

[amdhunter]

why are you talking to a REAL ESTATE agent about your finances? Talk to a mortgage broker.

Yeah, she had a list of them for me to go to, but I don't trust her at all now. I kind of made that clear to her too, I called her on her bullshit. She also pissed me off by telling me that an apartment wasn't available for sale. It was listed under a different realty company, and when I called them up, they asked if I'd like a showing, and that it had dropped in price. I declined because I felt bad "cheating" on my agent.

There is no way I should get a variable rate. What kind of BS is that.
How the hell do I find a trustworthy broker?

 

[waggy]

Yeah, she had a list of them for me to go to, but I don't trust her at all now. I kind of made that clear to her too, I called her on her bullshit. She also pissed me off by telling me that an apartment wasn't available for sale. It was listed under a different realty company, and when I called them up, they asked if I'd like a showing, and that it had dropped in price. I declined because I felt bad "cheating" on my agent.

There is no way I should get a variable rate. What kind of BS is that.
How the hell do I find a trustworthy broker?

i found ours by asking friends/relatives/neighbors of my parents etc.

the first one i used was one my parents used. she pulled a bunch of BS and my dad told me to drop her. he also didn't use her for his next 2 houses. anyway while out talking with my dad the neighbor walked up and so i asked him his son just got a house and i got the name. That one was young and great (1st lady was like 60).

word of mouth is king. ask around. its like finding a good barber or butcher! you gotta ask to find out!

 

[dabuddha]

New realtor ASAP. Telling you that you have to get a variable rate == BS

 

[jtvang125]

Unless you both signed a contract that she's representing you I don't think there's anything you can do about her giving you bad information.

And talk to a mortgage broker. You may get the best rates at a bank but service is horrible. I wanna punch every broker that I talked to at chase when I was shopping for a mortgage. Finally went with a small lender, fees were a bit higher but was able to close in less than 30 days.

 

[amdhunter]

Your realtor is retarded. I bought my first home about a year and a half ago, I had no problem getting a conventional, 30-year fixed interest rate loan. The only thing I would've had problems with was PMI, but I put 20% down so that was a non-issue.

What's PMI and did you do everything yourself?

 

[HardcoreRobot]

we found ours via recommendation of a friend. we also contacted the RE agent's recommendation. additionally we submitted on lending tree. the RE agent's contact sucked, the replies out of lending tree weren't too useful, but the friends recommendation was awesome. throw out tons of lines and see what you get. at the end of the day, it really doesn't matter who you use, just get the best loan you can.

 

[DrPizza]

I'm not so sure what's wrong with a variable rate. My mortgage has a variable rate; after one bank that had preapproved us for a much larger loan backed out of financing this house (because it didn't have water or a heating system - new pump & heating system the day after we closed took care of that) we briefly searched before determining that we needed the assistance of a mortgage broker. We had 2 weeks to finance it & close - and our broker accomplished that; the variable rate mortgage was apparently the best he could do with that span of time to work with.

Anyway, my current interest rate is around 2% or something like that. (I think I posted it in another thread on interest rates, whatever it was.) It has never been above what the current fixed rate is.

edit: re: lending tree. Do you *really* want to pick a lender that needs to go to lending tree in order to drum up enough business? I didn't think about it that way once. It's one of my life's greatest regrets.

 

[CrackRabbit]

What's PMI and did you do everything yourself?

PMI = Primary Mortgage Insurance. It something that lenders require if you put less than a certain amount (usually 20% of the propety value) in down payment.

 

[classy]

I am a licensed agent and have closed several deals. First, rather than running off half cocked, you should have just ask her why she would suggest a variable rate. Is she assuming a financial picture based on conversation with you? Are you looking at properties that she may assume may be too expensive for you based on down payment maybe? There could be lots of reasons, thats why you should ask questions. As for financial info on getting pre-approved, she is 100% correct and she shouldn't waste her time without you getting approved. That is for buyers and can cost you a house.

If you and another person see the same house and they are pre-approved and you are not, a seller won't waste his time with you, even if you offer more money. I would suggest getting a full approval so you know exactly to the letter how much you need down and how much you can spend. That puts you in the drivers seat.

Also agents talk all the time, be careful jumping from agent to agent, they can refuse to help you. Agents work under ethics and very few will jeopordize one's license by violating them. They work together many times. Any deal done profits all people involved. Outside of you not getting some clarification of her variable rate comments, from what you have posted, she sounds like she is pointing you in the correct direction.

 

[classy]

Unless you both signed a contract that she's representing you I don't think there's anything you can do about her giving you bad information.

And talk to a mortgage broker. You may get the best rates at a bank but service is horrible. I wanna punch every broker that I talked to at chase when I was shopping for a mortgage. Finally went with a small lender, fees were a bit higher but was able to close in less than 30 days.

From what he has posted, she has not given him any bad information.

 

[OCGuy]

From what he has posted, she has not given him any bad information.

Yes...yes she has. "First time home buyers" are not special from other buyers anymore. They certainly dont "Have" to get an ARM instead of a fixed.

I have seen more than a few deals in my time......with about 30 a month attributed to me.

 

[classy]

Yes...yes she has. "First time home buyers" are not special from other buyers anymore. They certainly dont "Have" to get an ARM instead of a fixed.

I have seen more than a few deals in my time......with about 30 a month attributed to me.

Your post sounds good, but its total bs. You don't know the type of houses he has been looking at? You don't know the neighborhoods he has been looking in either? Firsttime buyers are special, even more so. Rates are dirt cheap, but the banks are more stringent now than ever before. No offense, but if you assume because she suggested a variable rate without knowing any particulars concerning the op, that makes her giving bad advice, you don't know jack about real estate.

 

[classy]

I'll say this. I am going to assume, giving all parties the benefit of the doubt, that she has assumed a financial picture as to why she would suggest a variable rate. But without any financial info about the op, any agent has the potential to give off handed advice that may or may not be accurate as it pertains to the OP.