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Somebody 'splain this to me? Does a lender pretend I already have $8000

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Real Estate Agent with no longer in real estate

If I were a first time buyer,  I'm not, by a long shot, but if I were, how would my lender handle the fact that my Uncle Sam BHO is going to give me $8000 as soon as I buy my first home.  OK, so it's not exactly right away, but as soon as I can file my taxes and get my return I am going to have a nice handful of cash.

Does a lender consider that when I ask for a pre-approval?  If I have not been able to scrape together enough money for a downpayment, why would the lender think I am going to be able to afford to make payments on a home?

Isn't this just setting me up to get into a bind like my friends who did 100% financing two years ago?  If I can't manage my money to put aside a down payment, then how will I set up an emergency fund so that I don't have to default on my loan as soon as I have a medical emergenty that is not fully covered by insurance, or wreck my car and need to buy another one to be able to keep going to work?

Just wondering. 

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Ryan Shaughnessy
PREA Signature Realty - www.preasignaturerealty.com - Saint Louis, MO
Broker/Attorney - Your Lafayette Square Real Estate Partner

To the best of my knowledge, the lender doesn't factor the $8k into their underwriting decision at all - except to the extent that the buyer adjusts his or her withholding and is able to take home more pay and save up to $8k. 

Feb 23, 2009 08:10 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

And... that is why the housing is not taking off. Lets make money hard to get, let's put a moratorium on foreclosures, let's bail out people that can't pay their bills to start with and while were at let's sale the good notes to China so they can get into the American real estate maket.

Feb 23, 2009 08:33 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

And... that is why the RE market is not moving. A moratorium on foreclosures, harder to get loans, keep people in homes that can't pay for them or won't and the government buying the bad loans and selling the good loans to China.

Feb 23, 2009 08:35 AM