Quote:
Originally Posted by e90335e36m3
.... I see a new construction home on Saturday at 5PM, tell the sales agent on site that I want to move forward, he tells me, I need a preapproval letter, deposit and will get you contract shortly. I have a preapproval letter but he encourages me to use their lender to save on closing costs, OK no problem. I initiate the funds transfer ahead of contract, call the lender, they need me to provide all paperwork up front just to get pre-approval (e.g. W2, insurance policies on my other properties, pay stubs, all assets and so forth). I sit for 3 hours collecting the data. 7 PM Saturday, sales agent calls asks where my preapproval is? I explain to him they are making it very difficult to get preapproved, so it's out of my hands. I send him confirmation of funds transfer initiation.
Sunday 5 PM (24 hours later) I receive a purchase agreement, 70 pages with
What am I not understanding?
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First, you should be getting this answer from your realtor/representative. But, since you asked... Why would you get
pre-approved only to take the time to seek
secondary approval? You had no reason, at that junction, to submit anything for additional approval. That's why got
pre-approved. You could have submitted your contract and changed lenders later. This seems to be a residence under construction so closing would likely be in 90 days, or more, down the road, there was no reason you couldn't use a different lender later if they would save you money -
later.
Then you wired money BEFORE a contract was submitted or approved. Again, why? Many years ago a check for "earnest" money was expected upon submitting the contract but now, because everything is done electronically, most transfers I'm involved in happen upon contract acceptance, not before. It seems as if you, or your realtor, was allowing the seller to dictate terms that were in opposition to standard practices.
As I'm sure you know, you can take as much time as you choose to review, modify and counter any contract. Of course, during that time, anyone could submit an acceptable contract and beat you out of the house.