finances...

[seedspreader]

I started filling out one of those online "where banks compete for your loan" to get pre-approved for around 65K and I got to the third step and it said something to the effect of "LendingTree.com is not accepting loan applications for less than 100,000.00 in that area, if you want to increase the amount... yada yada yada"

In your opinion, is it the area (northwest PA) that is the issue or is it the low loan amount???

I didn't even get to the point where they asked for my credit information. I thought it was strange. We have good credit.

[goatlady]

Just another sign of the tightening of the loan market - minimum loan of $100,000 will weed out many marginal borrowers right away.

[seedspreader]

Originally Posted by goatlady

Just another sign of the tightening of the loan market - minimum loan of $100,000 will weed out many marginal borrowers right away.

I've looked at 8 houses in the area I am looking and none are above 80K. So what's that do for people in those areas?

[The Paw]

I tend to disagree that it is to weed out marginal borrowers. I think it is one of two things:

(a) The lower interest rate may be provided because the transaction costs (time to process and administer loan) are fixed costs, and make up a smaller proportion of the overall picture. In other words, by borrowing a higher amount you allow them to cover their costs with a lower annual rate. Of course, unless you actually need the higher amount, this means that the lower rate is not actually cheaper for you.

(b) I don't know LendingTree specifically, but there are some companies that are not the lenders but are brokers who match you with private individuals looking to lend as an investment. In those cases, those individuals may have stipulated a minimum loan size, and this might vary from region to region.

I am no expert on the Pennsylvania mortgage sector, but if all the houses you are looking at are $80,000 I think I would want to talk to a real, live loans officer at a real, live bank or credit union located in the area you want to buy.

[Happy Utahn]

When we bought our home three years ago, we had to borrow a minimum amount if we wanted financing-- I think it was $75,000 at the time. So we did, but we paid off a chunk right away because we didn't need to borrow quite that much. Our loan has a prepayment penalty, but only if you pay ot off completely in the first year, so paying off a few thousand didn't cost us any extra.

If you really need a smaller loan (for example if you wouldn't qualify for a larger one) you might have to look at private lenders, or perhaps the seller can be convinced to carry the loan. In both cases, the interest rate will be higher. But the bank or mortgage broker is not the only possibility. If you have a realtor, or if you know a good one, ask them for help. They're in the business of selling property, so it's in their best interest to know where money can be borrowed. (Then do your own due diligence-- don't take their word that it's a good deal unless you REALLY know & trust them.)

[littlebitfarm]

I refinanced a few years ago. Found the same thing. I didn't want enough money for Lending Tree to want to bother with me.

Kathie

[seedspreader]

Originally Posted by Happy Utahn

When we bought our home three years ago, we had to borrow a minimum amount if we wanted financing-- I think it was $75,000 at the time. So we did, but we paid off a chunk right away because we didn't need to borrow quite that much. Our loan has a prepayment penalty, but only if you pay ot off completely in the first year, so paying off a few thousand didn't cost us any extra.

If you really need a smaller loan (for example if you wouldn't qualify for a larger one) you might have to look at private lenders, or perhaps the seller can be convinced to carry the loan. In both cases, the interest rate will be higher. But the bank or mortgage broker is not the only possibility. If you have a realtor, or if you know a good one, ask them for help. They're in the business of selling property, so it's in their best interest to know where money can be borrowed. (Then do your own due diligence-- don't take their word that it's a good deal unless you REALLY know & trust them.)

I can qualify for all the loan I need to... the problem is that the houses won't be able to. I am not kidding when I tell you that none of the houses we looked at are above 80K (many of them much less than that).

[seedspreader]

I just wanted to add that I didn't try any other places, just that "lendingtree" site, because there was a link on the Realtor site.

I think I will call National City (the bank in town over there and my bank here also) on Monday.

[teresab]

Bob- try Northwest savings bank too. The headquarters is in Warren so they know the area very well. http://www.northwestsavingsbank.com/

[seedspreader]

Originally Posted by teresab

Bob- try Northwest savings bank too. The headquarters is in Warren so they know the area very well. http://www.northwestsavingsbank.com/

Hey thanks, will do.

[DAVID In Wisconsin]

You shouldn't have too much trouble in getting your loan. If nothing else, try Countrywide or Wells Fargo. I have recently used both for mortgages well under 100K. Good luck!
DAVID

[seedspreader]

I was just wondering why someone trying to borrow LESS money wouldn't qualify for LendingTree.com "Where banks compete for your loan"...

[mistletoad]

We did our re-fi through Lendingtree - it was for less than 100k (in an area where even townhouses go for way more than that) but it was also 4 years ago.

[seedspreader]

Originally Posted by mistletoad

We did our re-fi through Lendingtree - it was for less than 100k (in an area where even townhouses go for way more than that) but it was also 4 years ago.

Yeah the part about, "that area" was what got me thinking. I wonder if there is a higher percentage of defaults in the area I am looking at. The area is economically depressed (according to the reviews of the school system I've read)...

[RedneckPete]

Originally Posted by ZealYouthGuy

I am not kidding when I tell you that none of the houses we looked at are above 80K (many of them much less than that).

I assume these houses are being offered for sale by some real estate company and as such are listed on a web site somewhere. Can you post some links to them? With housing that cheap, I'm looking to move.

Pete

[seedspreader]

Originally Posted by RedneckPete

I assume these houses are being offered for sale by some real estate company and as such are listed on a web site somewhere. Can you post some links to them? With housing that cheap, I'm looking to move.

Pete

Sure genius!

http://homes.realtor.com/search/sear...149&ml=3&typ=7

Maybe we could be neighbors!

[seedspreader]

you can also check out: Warren to the east about 10 miles

http://homes.realtor.com/search/sear...475&ml=3&typ=7

[charles burns]

I looked at Lending Tree online quotes a while back (maybe four years ago), and they put up four quotes that were way higher than my own bank and another local bank I was looking at. I pressed the never mind button and went local.

Hey! There's a house on that last link for $14,900! You can buy a house for that! A real one? I mean like a whole house? with doors and walls and stuff?

[RachAnn in NW Okla]

my new neighbors just bought the house katty-korner from us for $7,000

and I know for a fact that the previous owners laid new pipes outside....sewer or water lines I think......they had to have a tractor of some sort to do it with

tore down the shed area and made a patio

added a chainlink fence

tore out carpet to find hardwood floors that they refinished

painted EVERYWHERE....

so even after the 'upgrades' the previous owners only lived there like a year and then sold for 7k....I think they, as a younger couple, couldnt afford it and just needed out of the loan

Rachel

[Liese]

Good Morning to All, Lending Tree is a broker, when we were mortgage shopping just over a year ago I found that they wouldn't work on loans for properties with over 5 acres either. We got a very nice rate from Farm Credit; it was sold over to their other branch Countrywide, we do not have a prepay penalty.