Posted by G.Thompson on February 21, 2001 at 16:36:48:
Let me rephrase that. There are two types of pre-approvals.
The one where a lender will provide you with a letter stating you can get a loan of up to $xxx,xxx.00.
Then you have the one where a mortgage broker has “shopped” your loan packet around to several different lenders and they tell you they have one that will work with you.
The later happened to me several years ago. The mortgage broker was telling me this just to buy time to find a lender who would really finance one of my deals.
Did you ever get a credit card offer in the mail saying you were “pre-approved” ? Pre-approved to receive their offer for a card, not necessarily approved to actually get the card and start using it!
I am a newbie and need help! (sorry for how long this is, I did’nt know how to explain in a shorter way)
My partner and I want to buy our first house and need help with creatively financing or at least get more info.
My partner has a taxable income of $22000, and I am a Nanny who is not taxed at all…but makes approx 27000 a year.
I contacted a Mortgage person who was more then happy to do a preapproval…so we got preapproved for 117000 conventional and 135000 for FHA. That sounds great and we were excited, but after contacting another Mortgage person I found out to my dismay that because I don’t file taxes at all my income is not counted??? I would’nt even mind paying a higher interest rate??
what can I do?? I am sooooo disappointed…
Are you saying your employer (the family you work for), doesn’t withhold taxes for you? If they don’t, you would still be responsible for reporting your income each year.
Also, it sounds like you’re an employee for them. Assuming you’re not a nanny for several families, your “employer” would be responsible for treating you as an employee. That’s a whole different potential problem.
A pre-approval is no guarantee you will get a loan on a property.
Are you planning on putting any money down?
What items/payments do you and your partner have to make each month (ie: credit cards, loans, car payment, etc…)?
Where do both of you live now? Do you rent?
A few more details will help in providing you with a better opinion on what to do.
“Worst” case scenario is you don’t get a loan for nearly as much of a house that you want.
“Best” case is that you purchase a property creatively.