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johnsorious 03-16-2013 09:28 AM

Buying home question
 
I just recently signed a P&S agreement and the seller has requested that I get a "loan commitment" within 5 days of signing the agreement.

1) Is that even possible? I talked to my bank and they said that it usually is issued after appraisal of the property. Can you confirm that?

2) My bank who is doing the mortgage said that they will schedule all the things necessary like title search, attorney, appraisal, etc... I even asked if that was true for inspections and they said they (the bank) schedule all that. I thought I was responsible to schedule the inspection....? Is the bank wrong or in your experience do some banks just operate just like that to eliminate any favoritism to either the seller/buyer and try to get an impartial 3rd party at their choosing.

What do you think?

This is a for sale by owner transaction.

joecaption 03-16-2013 09:37 AM

Not sure how anyone here that could be any place on the planet is going to know what your banks policys are.
It's there money there trying to protect and I can see why they would want to use there own appraser.
Way to many horror storys with fly by night inspectors.

creeper 03-16-2013 09:39 AM

Quote:

Originally Posted by johnsorious (Post 1138464)
I just recently signed a P&S agreement and the seller has requested that I get a "loan commitment" within 5 days of signing the agreement.

1) Is that even possible? I talked to my bank and they said that it usually is issued after appraisal of the property. Can you confirm that?

2) My bank who is doing the mortgage said that they will schedule all the things necessary like title search, attorney, appraisal, etc... I even asked if that was true for inspections and they said they (the bank) schedule all that. I thought I was responsible to schedule the inspection....? Is the bank wrong or in your experience do some banks just operate just like that to eliminate any favoritism to either the seller/buyer and try to get an impartial 3rd party at their choosing.

What do you think?

This is a for sale by owner transaction.

I find it very odd that your bank is handling all those things.

1) There should be no reason that the apparaiser can't meet that commitment. A Realtor would get on their case if there was a delay so first thing Monday morning phone them and make sure they arrange a day/time.

2) You get to choose your own lawyer and inspector as well. You are paying for them.

Since when is a bank in the business of selling houses. They sell mortgage products. It seems to me that should be the end of their involvement.

It wouldn't hurt to call another mortgage Broker today just for a conversation. You never know, you may be able to negotiate a better rate anyway.

Gymschu 03-16-2013 09:46 AM

Where I'm from, you almost always have to be PRE-approved for a house loan. I would assume that is a "loan commitment" if the bank pre-approves you up to a certain amount. When I bought my home, I was pre-approved for a mortgage up to $250,000 so I could purchase any home that suited my needs as long as I didn't go over the $250,000 limit.

I certainly think your bank is being wise in handling this FSBO purchase. Since a realtor is not involved, it would indeed be the job of the bank to do all the title searches, etc. It's a funny business right now. Banks aren't loaning to just anybody these days. They are going to cover all the bases. I would let them handle the "loan commitment" issue with the seller.
Is he not comfortable with you signing an agreement and giving him some earnest money?

creeper 03-16-2013 09:56 AM

Never assume that a 'pre-approval' is the same as a loan commitment. I've seen people get royally screwed on that one.

Before waiving any financial conditions on a property always get your financing from the bank in writing.

Don't mean to be contrary but I can't see why the bank would do any of that. They will no doubt hire a lawyer of their choosing that they may charge you for. Find that out.

creeper 03-16-2013 10:02 AM

Quote:

Originally Posted by joecaption (Post 1138470)
Not sure how anyone here that could be any place on the planet is going to know what your banks policys are.
It's there money there trying to protect and I can see why they would want to use there own appraser.
Way to many horror storys with fly by night inspectors.

Inspection is not the same as appraising

PoleCat 03-16-2013 10:19 AM

At the end of the day you will always find that nobody is in your corner but you. Remember that the people you pay to help you are there for the money, not because they care about you. In this state if you buy a property that has outstanding leins, water bills or taxes they become your liability. I would research the property myself if you don't have someone you know and can trust.

joecaption 03-16-2013 10:20 AM

I should have said appraser and inspector.
Never once seen a home not pass inspection when a reailtor hires them.
A lender has a vested interest in hiring an inspector that do there job and not just stick extra money in there back pocket.

creeper 03-16-2013 10:23 AM

Quote:

Originally Posted by PoleCat (Post 1138503)
At the end of the day you will always find that nobody is in your corner but you. Remember that the people you pay to help you are there for the money, not because they care about you. In this state if you buy a property that has outstanding leins, water bills or taxes they become your liability. I would research the property myself if you don't have someone you know and can trust.


This is the purpose of title insurance.

creeper 03-16-2013 10:25 AM

Quote:

Originally Posted by joecaption (Post 1138504)
I should have said appraser and inspector.
Never once seen a home not pass inspection when a reailtor hires them.
A lender has a vested interest in hiring an inspector that do there job and not just stick extra money in there back pocket.


lol..yes Joe a lender has an interest in selling a mortage for a property that has been appraised for at LEAST the value of the loan

To be clear an inspectors or a Realtors' opinion of value doesn't equate to a certified Appraiser

johnsorious 03-16-2013 10:30 AM

My mortgage broker said that they were going to take care of everything from the inspector, to appraiser, title check, attorney, and whatever is involved in the closing process. I obviously know that they are going to charge me for this stuff.

Have any of you heard of a broker doing all this stuff?

creeper 03-16-2013 10:33 AM

NO . Never.... But I'm a Realtor in Canada, so it may have no relevance to the way things are done in the States.

Personally, I would be more comfortable following normal procedure

RTC_wa 03-16-2013 10:43 AM

Quote:

Originally Posted by johnsorious (Post 1138464)
I just recently signed a P&S agreement and the seller has requested that I get a "loan commitment" within 5 days of signing the agreement.

1) Is that even possible? I talked to my bank and they said that it usually is issued after appraisal of the property. Can you confirm that?

2) My bank who is doing the mortgage said that they will schedule all the things necessary like title search, attorney, appraisal, etc... I even asked if that was true for inspections and they said they (the bank) schedule all that. I thought I was responsible to schedule the inspection....? Is the bank wrong or in your experience do some banks just operate just like that to eliminate any favoritism to either the seller/buyer and try to get an impartial 3rd party at their choosing.

What do you think?

This is a for sale by owner transaction.

to answer question 1 yep based on your credit score and income you bet! Takes all of 20 min.
to awswer your question to # 2 yes Banks live by the golden rule they have the gold they makes the rules. They are doing it for themselves not you. The bank is buying it your just paying rent on the home for thirty years. In most states you can have any one inspect the home you want to buy it can be crazy uncle billy bob it the best home inspection service. The bank your going through is just CYBing themselves.
Oh and once the P&S is signed accepted and all the dates have expired you can't back out unless the loan is not aproved.

RTC_wa 03-16-2013 10:50 AM

Quote:

Originally Posted by Gymschu (Post 1138477)
would indeed be the job of the bank to do all the title searches, etc. .

It always is the job of the bank to do all the title searches etc. it is real hard to finance a property that has a clouded title.

creeper 03-16-2013 10:52 AM

Quote:

Originally Posted by RTC_wa (Post 1138515)
to answer question 1 yep based on your credit score and income you bet! Takes all of 20 min.
to awswer your question to # 2 yes Banks live by the golden rule they have the gold they makes the rules. They are doing it for themselves not you. The bank is buying it your just paying rent on the home for thirty years. In most states you can have any one inspect the home you want to buy it can be crazy uncle billy bob it the best home inspection service. The bank your going through is just CYBing themselves.
Oh and once the P&S is signed accepted and all the dates have expired you can't back out unless the loan is not aproved.


This is how a proper bank appraisel is done.

The bank hires (should) hire an outside appraisal company. They arrange a day/time to go to the subject property and an inspection is completed.

The appraiser goes back to his office and completes and submits the report which becomes the property of the bank. This process certainly takes a day or two.

The bank most certainly is in it for themselves. The only interest the should have in this transaction is whether or not the mortgager (you) can repay the mortgagee (them)

AND if the mortgager defaults on his payments (foreclosure) can they resell the home for the value of the loan.

Period


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