1.14.2010

Getting Pre Approved

You'd better not have any secrets from your significant other when you go into a meeting to discuss a home loan. If there was anything about your credit, income, debts, bank accounts or finances that you were keeping on the down low it will be exposed with a quickness to your significant other and some random stranger who will punch your digits into a computer and decide your fate.

In our case, there are no secrets but it is kind of odd to be sitting there so exposed. Things that you may not normally talk about even with people you are very close to is fodder for discussion. Nothing is off limits. Income, job title, bank account balances, who you owe, and what you owe. You can't run and you can't hide.

You may have an idea about what kind of house you want but as you divulge all of your financial matters you are about to find out what kind of house you can get.

Gone are the days where you could walk in there unemployed and be approved for $500,000. The banks actually seem to care about whether or not you can actually make your mortgage payment or not now. We went in there hoping for a certain amount and it turns out we may not quite get that but we are hopefully still going to be in a good position to find something decent within our budget. That is actually OK by me. I am fine with being "forced" into a house that we can afford rather then being ushered into something that may overextend us. From the get go that has always been my primary concern. I want a nice house but I am not willing to push the limits of our monthly income to get it. If that means we get a little bit less house then so be it. We will make it our own, be together, and be much better off in the long run by playing it safe.

We actually got pre approved already by our bank for exactly what we wanted but this home lending service works with the real estate agent we are hoping can get us into a foreclosure and he requires that we at least get pre approved with his preferred lender.

We have great credit and few debts. I wish I earned more money. Don't we all? There is no point in playing the blame game but I know that would help A LOT. I regret that I already own a property which will count against me with a lender.

What I regret even more then that is an old student loan debt that I co signed on for my Ex Husband. It's this black cloud over my head that won't go away. I hate it that even in divorce he is still dragging me down. I take pride in my credit and I hate that what happens to it is not 100% in my control. I paid my student loan debts off but I still have his lurking in the shadows of my credit report. If I had been smart I would have insisted on him figuring out a way to refinance and get my name off before finalizing the divorce. Lesson learned the hard way on that one. Don't EVER co-sign for anyone on anything. Just don't.

We won't have any problem getting a home loan. It's just a matter of how much.


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