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Old 08-17-2007, 08:23 AM   #1
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First Time Home Buyers Question


Hi, I'm new here and I hope this is the correct place to post this. Is it normal for a lender/loan officer to request that $5000 be in a potential buyer's bank account prior to lending them the money for a home loan?

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Old 08-17-2007, 08:48 AM   #2
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In a recent news blurb it was stated that lenders are becoming a little more tighter in their requirements for home loans. I think this is all due to the number of defaults that they are experiencing with the adjustable rate mortgages that were handed out when interest rates were lower. Now that interest rates are climbing, mortagagees are finding that they can't meet the rate increase.

I'm just speculating, but what you're experiencing may be the result of that.

See this article: http://www.csmonitor.com/2007/0815/p01s01-usec.html

More reading at; http://www.google.com/search?hl=en&r...ten+up&spell=1

Oh... Welcome to the forum!


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Old 08-17-2007, 09:05 AM   #3
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I have a gambling relative who got loan people cheat... what happen is this guy has a bad credit... he went to the loan people... the loan people said no problem to borrow for any bad credit history... take away some 1500 deposit from the guy... then at the end ... tell the guy once you pay all your debts in your bad credit history... we will arrange borrow your money no problem.... and his 1500 is a goner unless he pay all his debts ..etc.... to others, this may seem fair... to me... the loan person should have told everything up front.....I think it is indeed a loan trick...
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Old 08-17-2007, 09:14 AM   #4
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First Time Home Buyers Question


Having gone through the process my self I know FHA has some specific requirements that must be met to qualify for their loan. When I purchased several years ago, I didn't have all of my down payment in my bank account. My father gave me some cash (A GIFT) for some work I had done. I had to get a letter from my parents stating that that the cash came from them and it was a non returnable gift. It may be that FHA is requiring the funds be available or it may be that the lender is simply qualifying you as a serious buyer.
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Old 08-17-2007, 12:47 PM   #5
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Usually the requirement is that you have enough cash in your accout to fully cover the closing costs (legal fees, land transfer taxes, surveys, etc... usually about 2% of the purchase price of the home, or of the loan amount, whichever is greater).

I've had this requirement for both houses I've bought in the past 4 years and my credit is near-perfect from all angles. Its so the lender doesn't waste their time setting up a loan for someone who will never be able to close on it (ie: cannot pay the mandatory closing fees to set the deal).
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Old 08-19-2007, 08:50 PM   #6
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First Time Home Buyers Question


Quote:
Originally Posted by sdh76 View Post
Hi, I'm new here and I hope this is the correct place to post this. Is it normal for a lender/loan officer to request that $5000 be in a potential buyer's bank account prior to lending them the money for a home loan?
Yes









...huh, won't let me reply with only 3 letter answer...lol

Yep
Ayup
You Bet
Uh Huh
Afirmative

...not that everyone has to, but yeah, it's normal
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Old 10-28-2007, 01:41 PM   #7
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Consider setting up an escrow account. Thais will ensure both you and the buyer that you are sincerely interested in purchasing when certain criteria has been met on both of your ends before releasing funds. Your criteria should be subject to an independent home inspection report that addresses all structural, mechanical, issues and water/moisture(mold) related concerns.
If you're in love with the place after receiving a report littered with repairs and replacement issues, then get a few bids from reputable contractors who will deliver a cost estimate that you can bring to the table well before the closing.
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Old 12-15-2007, 07:12 PM   #8
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First Time Home Buyers Question


Quote:
Originally Posted by sdh76 View Post
Hi, I'm new here and I hope this is the correct place to post this. Is it normal for a lender/loan officer to request that $5000 be in a potential buyer's bank account prior to lending them the money for a home loan?
Ayuh,....

I went thru something like this a couple years ago,.....

I had bought a house using the credit union,+ a 1st time home buyers deal,.....
After I had Just Closed on that house, the 1 next door became available,.....
The credit union wanted no part of another mortgage with the Ink still wet on the 1st 1,....
So,... I shopped around to some other local banks,....
The 1 that was willing to talk to me came back with a plan that included me having a savings account at their bank which would carry a balance equal to the total payments on the mortgage for a Year..........
Being cash starved from the 1st closing, I was already tight getting the down payment,+ closing costs together,.....
I Passed,+ told them to Never Mind...........
Less than a week later, they came back to me,+ decided to keep the paper Themselves,.....
Consequently,.... They wrote the mortgage for the normal down payment,+ closing costs,....

'course this was 2 years ago,+ the market has changed,......
But I'd look for Another Deal if were you........
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Old 12-15-2007, 09:39 PM   #9
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Quote:
Originally Posted by sdh76 View Post
Hi, I'm new here and I hope this is the correct place to post this. Is it normal for a lender/loan officer to request that $5000 be in a potential buyer's bank account prior to lending them the money for a home loan?
Did you have the home inspected?
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Old 01-27-2008, 06:09 PM   #10
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Actually, the expect to see more than $5k. They expect to see that the amount of your down payment has a track record in your bank account to establish that it is your money, which will give you an equity stake in the house, and tell them this money is actually yours. If the down payment money has only shown up recently, it sends a flag up that this money may be a loan from a relative or such, which you will be trying to pay back in addition to your regular payments, thus jeopardizing your ability to meet monthly debts and putting their money at risk. If such money has been given to you by a relative for this purpose, they will most likely demand a "gift letter" from them stating that it is indeed a gift and not a loan. The $5K your mention is as suggested, what they estimate you will need access to for closing costs.

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