After looking for months, not reallin interested, we've found a house we
really like.

We'd like to make an offer, and get the house under contract while we
scramble to get finaincing in order. This is so last minute, and I think
the house is great I'm afraid to wait until we hear back from banks &
morgage brokers. They are all telling me it can take at least a week to be
pre-aproved.

I want to get the ball rolling. If I make an offer, with a good sized
earnest money check, and no docs from a lender am I making a mistake??

Since the offer is contingent on financing, what's the difference?

-Jeff Hodges

Jeff Hodges writes:

I want to get the ball rolling. If I make an offer, with a good sized
earnest money check, and no docs from a lender am I making a mistake??

The seller can always just tell you to come back when you have some
documentation that demonstrates you qualify for a loan. That's not
exactly a mistake, but you'd be wasting your time.

Since the offer is contingent on financing, what's the difference?

You're asking the seller to take their house off the market until you
come up with financing. Why should they do that when they don't know
beans about your assets or credit rating? Better for them to wait for
an offer that has less doubtful contingencies, or for you to come back
with your preapproval letter.

-Sandra

"Jeff Hodges" wrote in message
...
After looking for months, not reallin interested, we've found a house we
really like.

We'd like to make an offer, and get the house under contract while we
scramble to get finaincing in order. This is so last minute, and I think
the house is great I'm afraid to wait until we hear back from banks &
morgage brokers. They are all telling me it can take at least a week to be
pre-aproved.

I want to get the ball rolling. If I make an offer, with a good sized
earnest money check, and no docs from a lender am I making a mistake??

Since the offer is contingent on financing, what's the difference?

It depends. If an equal or near-equal offer walks in the door with a
pre-approval letter, seller may figure a bird in the hand is worth two in
the bush. And if, much to your suprise, you can't get financing for some
reason, you are out the ernest money and any other fees you have laid out.
How come pre-approvals take so long in your area? Around here, I can pick it
up the next day. Or are we talking about two different things? In my case,
they didn't run the actual credit report or anything, just typed a letter
based on the bank statements, w2s, tax summarys, etc. that I showed them.
Maybe it was only an 'unofficial' pre-approval letter.

What the heck- if you can afford to risk the ernest money, give it a try-
worst they can do is say no.

aem sends...

On Mon, 13 Sep 2004 00:36:27 GMT, someone wrote:

you are out the ernest money and any other fees you have laid out.

Why would he be out the earnest money? The "standard" mortgage
contingency is that the deposit is refunded if the buyer has made
reasonable effort and can't get approved. Indeed, this is the main
reason why it is a weaker offer - otherwise sellers could make money
taking contingent offers and hoping people couldn't get financing and
thus lose the earnest.

But you DON'T lose it. That's what the contract clause is all about.

-v.

"Jeff Hodges" wrote in message
...
I want to get the ball rolling. If I make an offer, with a good sized
earnest money check, and no docs from a lender am I making a mistake??
=

Both times that we purchased homes, we made the offer, negotiated the price
and had the contract signed before we even applied for our mortgage, and had
no problems at all. In fact, that seems to be the way everyone purchases a
house here in CT.

In both cases, our offer had a mortgage contingency clause built in
(something to the affect of "Mortgage for 80% of the purchase price will be
obtained at a rate of no more than X by such and such a date"). If for some
reason, the mortgage didn't go thru we would have gotten our earnest money
back. And both times we only put a $1000. earnest money check on the house.

With the most recent purchase (this past summer) we were in multiple bids
situation, and this didn't cause any trouble. Both offers included the same
type of mortgage contingency and modest earnest money check. We originally
put in an offer for $3000 under the asking price and before we heard back
from the seller, another offer was given. We were both told to make a 'best
and final offer' within the next 24 hours, and we both did. Our best and
final was $2000 above asking price, the other offer was $1500 above, and we
got the house.

I just don't see it as a problem, unless your credit is iffy.

On Sun, 12 Sep 2004 14:44:29 -0500, someone wrote:

I want to get the ball rolling. If I make an offer, with a good sized
earnest money check, and no docs from a lender am I making a mistake??

Since the offer is contingent on financing, what's the difference?

Around here (Northeast) that is a very common way of making an offer.
I have never had a "pre-approval" on any of the properties I've
bought. Typically the Seller's broker will make some effort to see if
the Buyer seems qualified or not. OTOH, I as a Seller would be
suspicious about an offer that contained what seemed to be unrealistic
terms - like zero down for 30 years at a low rate, from buyers who
don't seem to know squat.

I suppose that in some of the "hot" markets where houses sell on the
first day for more than the list price, that if you have contingencies
you are sunk. But "normal" markets are not like that.

Exception: I sell land/lots from time to time. It is my practice NOT
to accept a contingency that is dependent on the value of the
completed house, because I have no knowledge or control of their
plans. I have had people whose house plans didn't appraise out or
(had contractor overruns) come back to me expecting me to make up
their difference from my lot price. But selling an existing house, I
would accept a reasonable mortgage contingency, since there the house
sits for all to see, its my house and I am the one claiming it is
worth $X.

-v.