     suzanne (Suzannel) | Tuesday, February 20, 2001 - 11:12 am 
OK, folks, I'm de-lurking after reading this board for the last year or so....
I got pre-approved and have finally found a property. One of the contingencies for my pre-approval was providing 12 mos. rent checks....no problem, except that I discovered that last July I took advantage of the "rent due on the 1st, but not considered late until the 5th" clause in my lease....so my check is dated for the 4th of that month....
Is the loan officer going to consider this payment to be late? |
| Christine Baker (Admin) | Tuesday, February 20, 2001 - 11:33 am
No, that shouldn't be a problem.
HOWEVER, you want to make sure you get all your conditions in so that that the approval is subject ONLY to the PROPERTY (appraisal/title insurance, etc.) conditions. |
| Christine Baker (Admin) | Tuesday, February 20, 2001 - 11:42 am
Because this is so important, I'll explain the above a little more:
When I work with a seller or look at offers for my own properties I definitely am VERY reluctant to accept an offer with any borrower conditions.
There could be delays, and if someone DOES have a rent late or can't produce the check, it will kill the deal. I don't believe in tying up the property, UNLESS it is a real good price and I consider it worth the risk. |
| suzanne (Suzannel) | Wednesday, February 21, 2001 - 04:14 am
Thanks Christine, for the quick response. The info I've gotten off this board has been great.
Is it usual that the bank's preapproval letter would mention outstanding conditions?
The pre-approval letter from the bank that I presented with my offer, indicated that after reviewing my bank accounts, w-2s, pay stubs, the bank was able to pre-approve me for xxxx amount. It didn't make any mentione of 3 outstanding conditions at the time of my offer(which I have now satisfied). The sellers accepted my offer and ratified the contract.
I can see the point, from the seller's perspective, of wanting to know if there are ny conditions on the pre-approval...I wonder if I just got lucky with the way my bank works? |
| Don (Don) | Wednesday, February 21, 2001 - 05:17 am
Just so people know, I also decided to go with twelve months checks instead of a letter from the landlord. I actually could only come up with 10 of them. I told the bank that those months we paid in cash, as we sometimes did since we had a good relationship with the landlord for all 8 years, we never had to worry about a receipt. This could be confirmed by the following months checks not having any additional money for late charges.
This didn't present any problems for the bank. Of course every set of circumstances is different. |
| Christine Baker (Admin) | Wednesday, February 21, 2001 - 08:59 am
Don was VERY lucky, and I wouldn't count on that happening again. Normally they'd require the LANDLORD to verify that your weren't late.
As far as approval conditions missing from the letter, it could get the bank in trouble too if you then can't get the loan, depending on the wording. I'd be looking for the listing of conditions, and if I don't see the property requirements and "no change in financial condition" I'd make further inquiries. |
