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Yes!!! Got Approved For A Home Loan

Stoked said:
So I rcently submitted the paperwork to see where I stood for a home loan and they told me that they could approve me for 160k right now. But if I wait and if I continue doing what I am doing they can approve 200k in the spring. I have never bought a home before, or any property for that matter. I am super relieved that my last two years of hard work and smart spending is paying off.

But since I am new to this do any of my more experienced forum members have any tips, warnings or recommendations?
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Is it really possible to get home loan from the bank without actual quote from the person and/or company who is selling you the actual property? In Estonia the process is something like that:

1. You try to find a suitable apartment or house which is affordable for you and you can pay the whole sum with payments that are maximum 1/3 of your monthly salary. Usually the loans are for the period of 10-20 years.
2. You get the exact price quote from the seller.
3. You go to the bank(s) to find out whether they will provide the loan and what are the conditions. Usually your salary must be paid to the same bank, your own financing should be at least 30 % if you can't find additional resources that cover the loan in case something goes wrong. Also you must have personal life and property insurance.
 
They have told me what they will finance me up to. It is up to me to make that work to get into a home.
 
bigb said:
Now you made me blush.

I would be seriously surprised if we have any yelp reviews.
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There are yelp reviews for just about everything. I saw a review for a Maverik gas station. If nothing else you should check, there could be some valuable feedback that people would never say directly to you.
 
Gameface said:
There are yelp reviews for just about everything. I saw a review for a Maverik gas station. If nothing else you should check, there could be some valuable feedback that people would never say directly to you.
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Just tried to find us and after looking through the first 150 or so on the electrician group under home services I couldn't find us. Tried doing a search for Spartan Electric in salt lake city, and it brought up an ad for an electrician, and hotels. This is the first time I've ever been to yelp, so I could be doing something wrong though.
 
lauriandres said:
Is it really possible to get home loan from the bank without actual quote from the person and/or company who is selling you the actual property? In Estonia the process is something like that:

1. You try to find a suitable apartment or house which is affordable for you and you can pay the whole sum with payments that are maximum 1/3 of your monthly salary. Usually the loans are for the period of 10-20 years.
2. You get the exact price quote from the seller.
3. You go to the bank(s) to find out whether they will provide the loan and what are the conditions. Usually your salary must be paid to the same bank, your own financing should be at least 30 % if you can't find additional resources that cover the loan in case something goes wrong. Also you must have personal life and property insurance.
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We are based on a pre-qualification process. The property you try to purchase still has to appraise just like you are describing in order to get the loan, but that comes later on.
 
franklin said:
It's 50% of ONE portion of your monthly expenses, not 50% of your entire budget.

I can't say people can definitely do it.
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But you DID say that. That's what I was objecting to.

It's 50% of a major item in your monthly expenses. My advice is to figure out how much you can afford per month, then calculate how expensive of a house that corresponds to. And then STICK TO THAT. Don't purchase one that's more expensive, because you've already worked out what you can afford. I think that's very sound advice.
 
franklin said:
Stoked isn't purchasing in that price range.

People know what they are comfortable with, whether it's a $200k condo or a $2mm home. If you're purchasing a $2mm home you probably don't need to stretch yourself. If you are purchasing a $200k home you definitely can stretch yourself to $300k. It is very small risk to reward in this low interest rate environment. $450/month for an extra $100k PLUS appreciation is not a bad bargain at all.
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No, they don't. That;s why we had a housing crisis.

Srsly, you're going full retard all over this thread.
 
There's not a real magic formula. Get a as good of a deal as you possibly can and a payment you are not likely to default on.
Frank is right in that there's typically more upside on more home... and I'm sure if he is saying commit to more you can pay, he's trolling.
 
Dr. Jones said:
There's not a real magic formula. Get a as good of a deal as you possibly can and a payment you are not likely to default on.
Frank is right in that there's typically more upside on more home... and I'm sure if he is saying commit to more you can pay, he's trolling.
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Except he didn't advsie to get more sq feet or to pay attention to price per sq ft. He just said spend more. That's a good way to get screwed I think.
 
♪alt13 said:
No, they don't. That;s why we had a housing crisis.

Srsly, you're going full retard all over this thread.
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Your fundamentalist, stare down your nose at everyone else approach to the housing crisis is as uninformed as they come. Go back to your a.m. radio.
 
Red Jazz Fan said:
I think the consensus here is DONT follow Franklin's advice...
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Colton and others each have their own failures of comprehension of pure genius. Franklin never said get yourself a foreclosure experience. Franklin is of the school that considers Dave Ramsay the polar opposite of aggressive investment. Most people can't effectively play the markets in stocks, bonds, gold, commodities, etc. . . but I did what Frank is saying on my first home. No way in hell would I have qualified for any bank loan, and it was a wild ride. I found a seller who carried the contract, and I paid off the 15 year loan in ten years. What Frank is saying is here is an investment opportunity if you have the guts to do what it takes.

genius, I say. When there's no open door, you make your own way somehow.

Stoked is not as poor as I was, so maybe he can luxuriate in playing small scale investor in other ways. My only problem with Frank's advice is timing. It takes a rising market to win that game, and I'm not so sure we have that right now. Our 2008 "bubble" didn't really pop yet. Our govt. has tried to guide it to a soft landing, but nationally wages haven't done so well, except in the oil drilling areas which are right now in contraction. Utah is amazing. Stable people who pay tithing and live by Colton's mantra kept this state from going on the extreme roller coaster ride Vegas did, for example. My observation in California is that young people generally believe they will never be able to buy a house, which for starters is 500K. But someday housing prices will adjust down to the 30% of earnings ratio for all classes of buyers, and California houses will be like Utah houses in prices. Frank might know more about Utah wages than I do, but I haven't seen inflationary wage increases in Utah. Maybe in some sectors like young technology/computer/science talents or business but not at the production plants or service jobs.

Cedar City or St. George are going to grow disproportionately with the rest of Utah, and that might, even now, be a place to take a strong investment position in real estate, particularly a tax sheltered investment like a home.

I don't even try to sell in Utah because so many people are so conservative. That's a good indication Utah won't see much of housing bust, too.
 
babe said:
Colton and others each have their own failures of comprehension of pure genius. Franklin never said get yourself a foreclosure experience. Franklin is of the school that considers Dave Ramsay the polar opposite of aggressive investment. Most people can't effectively play the markets in stocks, bonds, gold, commodities, etc. . . but I did what Frank is saying on my first home. No way in hell would I have qualified for any bank loan, and it was a wild ride. I found a seller who carried the contract, and I paid off the 15 year loan in ten years. What Frank is saying is here is an investment opportunity if you have the guts to do what it takes.

genius, I say. When there's no open door, you make your own way somehow.

Stoked is not as poor as I was, so maybe he can luxuriate in playing small scale investor in other ways. My only problem with Frank's advice is timing. It takes a rising market to win that game, and I'm not so sure we have that right now. Our 2008 "bubble" didn't really pop yet. Our govt. has tried to guide it to a soft landing, but nationally wages haven't done so well, except in the oil drilling areas which are right now in contraction. Utah is amazing. Stable people who pay tithing and live by Colton's mantra kept this state from going on the extreme roller coaster ride Vegas did, for example. My observation in California is that young people generally believe they will never be able to buy a house, which for starters is 500K. But someday housing prices will adjust down to the 30% of earnings ratio for all classes of buyers, and California houses will be like Utah houses in prices. Frank might know more about Utah wages than I do, but I haven't seen inflationary wage increases in Utah. Maybe in some sectors like young technology/computer/science talents or business but not at the production plants or service jobs.

Cedar City or St. George are going to grow disproportionately with the rest of Utah, and that might, even now, be a place to take a strong investment position in real estate, particularly a tax sheltered investment like a home.

I don't even try to sell in Utah because so many people are so conservative. That's a good indication Utah won't see much of housing bust, too.
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I am also hoping that the completion of temple in a year or two will further increase property values.
 
Stoked said:
I am also hoping that the completion of temple in a year or two will further increase property values.
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It'll save you time and travel.

The Church is getting smarter, in some ways. Bringing the gospel to the people making it accessible. It's either that or "come to Zion".
 
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