The Palm Beach Post from West Palm Beach, Florida on March 29, 1998 · Page 337
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March 29, 1998

A Publisher Extra Newspaper

The Palm Beach Post from West Palm Beach, Florida · Page 337

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West Palm Beach, Florida
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Sunday, March 29, 1998
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Page 337
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8 THE PALM BEACH POST RESIDENCES ADVERTISING SECTION SUNDAY, MARCH 29, 1998 n Savvy buyers get preapproved, not prequalified About Real Estate DAVID W. MYERS Getting preapproved takes a little more time because it involves a more thorough examination of your income, debt and related issues. Question: I'm very angry. I got prequalified for a loan about two months ago, and the lender said I could borrow up to $190,000. 1 recently agreed to buy a house and applied for a $169,000 loan through the same lender. My loan application was rejected because the bank now says I qualify for only a $155,000 loan! What can I do? A nswer: Like many buyers, you've " learned the hard way that there's a big difference between prequalifying for a mortgage and getting preapproved for one. It's better to spend the extra time needed to get preapproved. You might be able to qualify for the $169,000 needed to buy the house you've found by choosing an adjustable-rate mortgage over a fixed-rate loan because the ARM's low introductory rate will let you borrow more money. If you have some extra cash, you could instead add $14,000 to your down payment so you only need to borrow the $155,000 the lender is offering. Other alternatives include asking the seller to carry back a $14,000 second mortgage, looking for a lender who uses looser loan criteria, or simply finding a less expensive house. Your real estate agent or loan representative can provide details about your options. It's important for buyers to realize that merely getting prequalified for a loan doesn't count for much in today's real estate market It's a 10-minute process designed to provide a very rough estimate of how much you can borrow, based largely on how much you earn and how much debt you have. There's no guarantee that the lender will loan you that amount or even that its estimate is accurate. Getting preapproved takes a little more time because it involves a more thorough examination of your income, debt and related issues. But it results in an extremely accurate estimate of how much you can borrow, and some lenders will even commit to making the loan even though you haven't yet found the home you want to buy. Preapproved buyers also have an edge when they actually make their purchase offer because the seller will know that financing the sale shouldn't be a problem. That's an especially important point for buyers and sellers alike to consider as the prime spring home-buying season gets under way. Important closing term Q:, I was filling out a closing costs worksheet that I found in a book, but I got caught up on something called "statutory costs." What are they? A: The worksheet you're filling out now can't be very helpful if it doesn't define such an important closing-related term. Statutory costs are closing-related expenses that are paid to state or local agencies. This sets them apart from "third-party" closing costs, such as fees that must be paid to inspectors, insurers and the attorney or escrow officer who supervises the closing of the transaction. The most common statutory cost is a "recording fee," which is typically levied by county officials to offset the cost of recording a new deed and updating its property-tax files when title to a home changes hands. Local agencies across the U.S. are constantly coming up with new ways to make money off property sales, so ask a real estate professional in your neighborhood for help in estimating the closing costs you'll be expected to pay. New owners must honor mortgage Q: The bank that gave me my home loan has been purchased by another bank. I am worried that the new bank will change my mortgage because my loan rate is only 6.5 percent and rates are higher now than when I took the loan out. What are my rights in this situation? A: Homeowners have several important rights when their lender is acquired by another financial institution. You don't have anything to worry about. Federal law requires the new bank to honor the terms of the original mortgage contract you signed with the first lender. It cannot change the interest rate on your loan or your monthly payment without first getting your permission. Nor can it demand that you immediately pay the entire balance off in a lump sum. Of course, you'll have to keep playing by the rules of the original contract too. The mortgage you signed probably gave the first bank or its "assignee" the ability to change where your payments must be sent, so the new bank has the right to demand that your monthly checks be mailed to a new address. David Myers has been writing about real estate, finance and consumer issues for 1 5 years. Send your questions to David Myers, P.O. Box 2960, Culver City. CA 9023 1 -2960. LOCATOR MAP Use this map as your guide to locating residences in the area serviced by the Realtor members of the Realtors Association of the Palm Beaches, Inc. A K g X v ' Nortti Boundary ft I I 1 o cr- n X o Gomez Grant I I 1 ? TumptktNX Jonathan Damson I 1 , MABTIN COUNTY V ( .5 PALM BEACH COUNTY Jl T J 1) I U AREA 20 - North - Bluffs Ocean Condo, East - Atlantic Ocean, South - Lakes Ql IIia DI.aIK ii.: in... . . 1 AREA 21 ci uic uiuii&mcuuioiu, west - imracoastal Waterway - North - Fredenck Small Road, East - Intracoastal Waterway, South - Donald Ross Rrwrl Woct-Ait aia Atlantic Ocean AREA 22 - North - Marcinski Road, East' - Atlantic Ocean. South - PGA Boulevard, West - Intracoastal Waterway " Donald Ross Road. East - Intracoastal Waterway, South - PGA Boulevard. West - Alt. A1 A - North - McArthur State Park, East - Atlantic Ocean, South - Palm Dfl3.h In nf Aa4 I . ...... 1 AREA 23 AREA 24 AREA 25 yinaanlCTn Rd Ty JUPfTER N. C-18 Canal Donald RqraBoad o WW Lata Pan. Woad NrrlMa-e 9Kr) . Svr Beac Ro f j -J I phvicraT'v 1 -XPAU- I I BEACH 1 1 We Lake "an Boad wcawi unci, neai -imracoasiai waterway T PGA Brevard. East - Intracoastal Waterway, South - Northlake (Boulevard. West - Prosperity Farms Road "LrSl.T PA.'evard, East - Prosperity Farms Road, South -Northlake Boulevard, West - Military Trail - North - Northlake Boulevard, East - Intracoastal Waterway, South -Silver Beach Road, West - Military Trail " crSr S,lvf.r, Beach Road- East " Intracoastal Waterway, South -59th Street, West - Military Trail o7 N.lakeLake ParK Road. East - Military Trail, South -45th Street West - Florida Tumpik&Beeline Highway - Nortti - PGA Boulevard, East - Milrtay Trail, South - Northlake Boulevard. West - Flonda Turnpike - North - Hood Road. East - Aft. AIA, South - PGA Boulevard. West - Flonda Tunpike " Sf?1? - D0"31 Ross Road, East - Aft. AIA, South - Hood Road, West - Flon la Turnpike " Nr",P"o18 Ca3nalIr,!denck SmallTumpike, East - Aft. AIA, South - Donald Ross Road, West -C-18 Canal ' n0 7,PTal2 Road- East " flonda Turnpike, South - Hood Road West - C-1 fl P-anal K AREA 26 -AREA 27 -AREA 28 -AREA 29-AREA30-AREA31 -AREA 32-AREA33-AREA34-AREA35-AREA 36- T1 J.. !as1 - nda Turnpike. South - PGA Boulevard, West - C-1 8 Canal !lGn Iast " Fk)nda Turnpike. South - Northlake AREA55- tlf?1? "S:l?Ca,nalJEas, 441 E)fte"sion. South - Lake Park Road. West - 20 Mile Bend

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