I will be submiting an offer and need your advice!

**gregory** · 12-29-2007, 10:25 PM

Hi people,

I am looking into buying a house. I found this foreclose house with great potential. The house needs work (mainly cosmetic) but I believe that is a fair price, good area. My question here is the following, my agent wants me to submit an offer next week. So far I have been pre-aproved for a laon with CountryWide but this has only been based on information I gave to loan officer over the phone. Should not I secure the loan and signed some type of contract with the conditions and details on the loan before we even submit an offer?. This is my first house and I am not familiar with the process of buying a house. What would happen if I submit an offer that gets accepted but once we go into the details and conditions from the lender I do not agree and decide not to get that loan? Would I still have time to look for a different lender or will I be able to walk away from this without any legal problems since I submited an offer?. Also, I have not taken the time to shop around with different banks for the best loan. This officer at CountryWide promise me a 5% rate on my loan since my wife is a school teacher and she could qualify for this low interest rate. Is this good or should I still look at other banks?. The lowest interestes I have seen online been offered are 5.75% but I have not spoken with any other loan officer to discuss my specific situation. If I need to look at other banks where can I start?. By the way, I live in southern california if this makes any difference.

Thank you
Greg

**Greg** · 12-30-2007, 09:19 AM

Talk to a "local" lender and have them run a credit check and qualify you for a loan. Your real estate agent can recommend some lenders. You don't need to apply for the loan until after you get a signed contract. The bank that is selling the house will require this anyways and you will know if you can get a loan.

You can get a new lender at anytime during the process. The lender will probably not give you a firm interest rate lock-in until you have a contract signed.

**Codythebest** · 12-30-2007, 09:36 AM

Beside, you were no pre-approved, you were pre-qualified.
I suggest to be pre-approved but you may make your offer contingent upon financing, not a problem.
Double check your FICO also with the new logarythmes in place. To be a school teacher and paying bills on time will not guarantee a good score anymore...

**gregory** · 12-30-2007, 11:33 PM

I have taled to the loan officer who will be handling our loan and she states that we are... I better say my wife is aproved for a loan at 5% rate 30 yrs fix. She will be applying for the loan on her own since my credit is not the best and that way she can qualify for this 5% interest rate. I think this 5% sounds pretty good taking into account that the lowest rates I have seen are 5.75%. What do you guys think. We really like the house, it needs lots of cosmetic work but has great potential. It is in a great area a block away from a golf club. This is pretty much the ugly duckly of the neiborhood. The house is listed for $270,000 but I am planning to hit low and offer $230,000 and see the response from the bank. Do you think I am pushing it by offering $40,000 less?. With the foreclosure crisis here in California I believe I might get away with it. The houses in the same block are valued at least $350,000 and are smaller but obviously in better shape. Currently leaving in an area where an ugly old house costs no less than $500,000 gives me a different prestective on this property we want. What do you people think?.