Home Savings vs. Mortgages

Benjamin Rodriguez2 said:Where exactly do you think you’re going to pull an invoice from for the rest of it? From whoever’s handling your renovation? I mean, you’d probably prefer to just settle things under the table, but what, you think you can just hand some fake receipts to the bank? That’s straight-up illegal 🙂 I honestly don't know which company would even touch that, since they’d have to eat the sales tax and corporate tax on top of everything else, right?

Look, just hire a legitimate contractor for the renovation and boom—you’ve got your invoices, plus you actually get a warranty on the work 🙂

Or, if you're feeling adventurous, pay the handymen in cash and then just use the money that needs covering to buy all your materials

As for the total amount agreed upon, it doesn't matter if you weren't hitting your payment dates perfectly; what matters is that you paid EVERYTHING you owed, and once you do, the full amount belongs to you. Being punctual only affects your credit score when they decide how much to grant you, so yeah, being late might drag out the approval process for a month or two—you should probably ask your folks at Wells Fargo about that. They likely suggested a lower amount upfront just because of those delays (and the incomplete payments, though you can always settle those up later) so you wouldn't be stuck waiting indefinitely

Look, this isn't even about home renovations. It's just furniture to get the place set up. My own personal banker told me to just grab whatever receipts I could for that amount and bring them directly to the branch right before the loan clears. So why is everyone acting like a saint here when nobody actually does "illegal" receipts? This is the only way to satisfy the loan requirements for what I'm applying for!

So, back to the receipts... did anyone actually grasp my main point? Is it really true that nobody has ever done this before??? hellooo

Basically, does anyone have any kind of receipts where the buyer's name isn't listed—for a fee, obviously?
I mean, I have to justify the specific amount to get the cash; that's just how it works. Just standard receipts totaling $4,000...

Look, you’re basically just paying interest (plus the principal) on the gap between what the bank actually handed you and whatever cash you’ve got sitting in your savings (including all that interest from your standard accounts and your 401k). Your money is still yours, right? You get it back eventually, so why on earth would you be paying them *your* actual cash? 🙂

bluebear34 said:Look, this isn't even about home renovations. It's just furniture to get the place set up. My own personal banker told me to just grab whatever receipts I could for that amount and bring them directly to the branch right before the loan clears. So why is everyone acting like a saint here when nobody actually does "illegal" receipts? This is the only way to satisfy the loan requirements for what I'm applying for!

So, back to the receipts... did anyone actually grasp my main point? Is it really true that nobody has ever done this before??? hellooo

Basically, does anyone have any kind of receipts where the buyer's name isn't listed—for a fee, obviously?
I mean, I have to justify the specific amount to get the cash; that's just how it works. Just standard receipts totaling $4,000...

But hey, you were the one who wrote that this was for a remodel in the first place, right? Let's not pretend we're playing saint here... I used my own housing funds to pay off a previous mortgage—which was specifically designated for that purpose—so I didn't have to go chasing down random receipts or jumping through hoops to prove anything.

Benjamin Rodriguez2 said:Look, you’re basically just paying interest (plus the principal) on the gap between what the bank actually handed you and whatever cash you’ve got sitting in your savings (including all that interest from your standard accounts and your 401k). Your money is still yours, right? You get it back eventually, so why on earth would you be paying them *your* actual cash? 🙂

but you still haven't shared any actual numbers.

Of course you won't be paying back your own money! But that’s exactly my point. Without seeing some specific figures, we can't figure out the actual interest rate on your loan.

Does anyone actually get how this works with the receipts you need to submit to justify the loan? (I'm planning on using the cash for some new furniture) And how "fresh" do those receipts need to be... how old can they be before they're useless? Also, would they accept something like a Zepter invoice if I have an outstanding balance, since I didn't pay cash upfront?

Matthew Price5 said:but you still haven't shared any actual numbers.

Of course you won't be paying back your own money! But that’s exactly my point. Without seeing some specific figures, we can't figure out the actual interest rate on your loan.

And I'm really not gonna sit here and spell out my private financial details for you. The interest rate you end up stuck with depends entirely on which bank you use and whatever specific savings plan you signed up for. Mine is a mortgage through Wells Fargo, using their mini-savings setup—the fixed rate on the loan is 3%, though I think the APR is closer to 3.29% or something like that. You can find all that stuff right there on their website if you actually bother to look.

Honestly, I don't even get why we're fighting about this.

Benjamin Rodriguez2 said:And I'm really not gonna sit here and spell out my private financial details for you. The interest rate you end up stuck with depends entirely on which bank you use and whatever specific savings plan you signed up for. Mine is a mortgage through Wells Fargo, using their mini-savings setup—the fixed rate on the loan is 3%, though I think the APR is closer to 3.29% or something like that. You can find all that stuff right there on their website if you actually bother to look.

Honestly, I don't even get why we're fighting about this.

Who said there was a problem?

I'm just curious about the fees you ended up paying.

If everything is as straightforward as you say, it should be easy to share some figures. They don't need to be exact, just a rough ballpark estimate.

bluebear34 said:Does anyone actually get how this works with the receipts you need to submit to justify the loan? (I'm planning on using the cash for some new furniture) And how "fresh" do those receipts need to be... how old can they be before they're useless? Also, would they accept something like a Zepter invoice if I have an outstanding balance, since I didn't pay cash upfront?

Anybody ??

From what I understand, there isn't some strict deadline tied to the bills themselves, but the loan payout goes directly into the seller's account... and honestly, with these types of loans, you can technically spend the cash on whatever you want once it hits your pocket. It’s your money, right? You can put it toward anything in the house—even a Zepter vacuum cleaner (which I personally own and deeply regret buying; I basically threw $550 down the drain). As for those installment payments 🤷, the bank is just going to wire the full amount straight into their account

Kimberly Nguyen said:From what I understand, there isn't some strict deadline tied to the bills themselves, but the loan payout goes directly into the seller's account... and honestly, with these types of loans, you can technically spend the cash on whatever you want once it hits your pocket. It’s your money, right? You can put it toward anything in the house—even a Zepter vacuum cleaner (which I personally own and deeply regret buying; I basically threw $550 down the drain). As for those installment payments 🤷, the bank is just going to wire the full amount straight into their account

But what if it’s already been paid off?? Like, I’ve already cleared some Zepter stuff, some high-end cookware, but also other random bills like paint for the walls and trim, brushes, etc. I have no clue if little things like decor I bought to set up my place count too. Does that fall under those accounts? Honestly, the whole thing seems pretty stupid to me... how am I supposed to buy things I don't have money for right now, when nobody is going to give me receipts in advance for furniture, bathroom fixtures, bedroom sets, and all that stuff?!?!

Here’s how it went down when I was talking to my representative at Wells Fargo recently regarding my apartment renovation. When you're in the adaptation phase, you basically hand them an estimate, and they pay the contractor or the supplier directly based on those figures. Once you move into the furnishing stage, you either bring them the final invoices so they can reimburse you, or—more likely—it’s the same deal where you provide an estimate, they settle the bill, and then the furniture gets delivered straight to your place.

As for how much leeway they give you regarding invoice dates, I guess it’s hard to say exactly how much they tolerate.
It just doesn't seem to make any sense to me to furnish an entire place and then wait six months to take out a loan to cover the cost of that furniture. It’s like buying an apartment a year in advance and then waiting until later to grab a mortgage for it. If anyone here actually understands the logic behind that, maybe someone could set me straight.🤷

bluebear34 said:But what if it’s already been paid off?? Like, I’ve already cleared some Zepter stuff, some high-end cookware, but also other random bills like paint for the walls and trim, brushes, etc. I have no clue if little things like decor I bought to set up my place count too. Does that fall under those accounts? Honestly, the whole thing seems pretty stupid to me... how am I supposed to buy things I don't have money for right now, when nobody is going to give me receipts in advance for furniture, bathroom fixtures, bedroom sets, and all that stuff?!?!

Look, what you're talking about is called a pro forma invoice... based on that pro forma and the rest of the necessary paperwork required to finalize these kinds of loans, they start the process... once the loan gets approved, the funds are released based on that invoice... some portion (though I'm not sure how much 🤷) can be transferred directly to your account if you had to cover something out of pocket in the meantime...

But if you go out and buy stuff first and then try to claim a loan for it afterward? Yeah, I'm pretty convinced that just doesn't work anymore...

Way back in the day, maybe you could get away with that, but federal regulations changed and closed that door...

And why would it be stupid? That's literally what the loan is designed for... if a massive amount of people were able to use it that way, why shouldn't you be able to too?

Brian Murphy32 said:Here’s how it went down when I was talking to my representative at Wells Fargo recently regarding my apartment renovation. When you're in the adaptation phase, you basically hand them an estimate, and they pay the contractor or the supplier directly based on those figures. Once you move into the furnishing stage, you either bring them the final invoices so they can reimburse you, or—more likely—it’s the same deal where you provide an estimate, they settle the bill, and then the furniture gets delivered straight to your place.

As for how much leeway they give you regarding invoice dates, I guess it’s hard to say exactly how much they tolerate.
It just doesn't seem to make any sense to me to furnish an entire place and then wait six months to take out a loan to cover the cost of that furniture. It’s like buying an apartment a year in advance and then waiting until later to grab a mortgage for it. If anyone here actually understands the logic behind that, maybe someone could set me straight.🤷

I highly doubt anyone at Target is going to hand over a formal quote just so I can take it to the bank.
None of this makes any sense to me! I have receipts for the amounts I need, but that includes stuff from last year and even the year before... I'm skeptical about the older ones, but maybe last year's will fly... We're talking materials for fixing up the place (paint, window trim, brushes...), two appliances from Zepter, some AMC dishes, and now I've got receipts from this month for mattresses that cost more than $4.75. I don't even know if they'll count the mattress receipt since I'm buying those on credit, even though everything is clearly listed on the paper. Heading to the bank tomorrow to see where I stand, though I'm not expecting much...
And again, the whole thing is just ridiculous because how am I supposed to buy anything without cash when I actually have the savings sitting right there?!?!?! And where am I even supposed to dig up these "famous" receipts?!?

Kimberly Nguyen said:Look, what you're talking about is called a pro forma invoice... based on that pro forma and the rest of the necessary paperwork required to finalize these kinds of loans, they start the process... once the loan gets approved, the funds are released based on that invoice... some portion (though I'm not sure how much 🤷) can be transferred directly to your account if you had to cover something out of pocket in the meantime...

But if you go out and buy stuff first and then try to claim a loan for it afterward? Yeah, I'm pretty convinced that just doesn't work anymore...

Way back in the day, maybe you could get away with that, but federal regulations changed and closed that door...

And why would it be stupid? That's literally what the loan is designed for... if a massive amount of people were able to use it that way, why shouldn't you be able to too?

I'm just wondering where this "huge crowd" is hiding......I know my old man managed to pull it off, but only because the lady at the bank basically hunted down his receipts for him, haha... (wasn't expecting that, honestly)... hard to believe there are still people like that left on this planet 🙄.
So you're telling me I could go to a Target, grab an invoice, take it to the bank, and then wait through all that red tape before actually seeing any cash?

Why wouldn't you just ask Target or maybe even someone like Walmart to send over a formal quote or a preliminary estimate first?

bluebear34 said:I'm just wondering where this "huge crowd" is hiding......I know my old man managed to pull it off, but only because the lady at the bank basically hunted down his receipts for him, haha... (wasn't expecting that, honestly)... hard to believe there are still people like that left on this planet 🙄.
So you're telling me I could go to a Target, grab an invoice, take it to the bank, and then wait through all that red tape before actually seeing any cash?

Exactly. Look, the invoice needs to be in your actual legal name. And for heaven's sake, tell the clerk or the manager how you plan on paying for this. Most of these quotes are only valid for about eight days, and there is absolutely zero guarantee your loan will actually clear in that timeframe.

You really need to coordinate with your bank first to make sure the funding is a done deal. Don't just go out there, collect a mountain of paperwork, and show up empty-handed.🙂

Kimberly Nguyen said:Exactly. Look, the invoice needs to be in your actual legal name. And for heaven's sake, tell the clerk or the manager how you plan on paying for this. Most of these quotes are only valid for about eight days, and there is absolutely zero guarantee your loan will actually clear in that timeframe.

You really need to coordinate with your bank first to make sure the funding is a done deal. Don't just go out there, collect a mountain of paperwork, and show up empty-handed.🙂

Gotcha... Fingers crossed! I'm heading there tomorrow!
I just really hope Chase lets me use these estimates... They never mentioned anything about them, they only talked about the accounts...🙄

Brian Murphy32 said:Why wouldn't you just ask Target or maybe even someone like Walmart to send over a formal quote or a preliminary estimate first?

I don't know, man. I'm still figuring this stuff out, haha... I'm pretty green 🤷🙄
What about other shops, though? Like if you're looking at flowers, wallpaper, or some kind of general retail store?? Do they use pro forma invoices too?

bluebear34 said:Gotcha... Fingers crossed! I'm heading there tomorrow!
I just really hope Chase lets me use these estimates... They never mentioned anything about them, they only talked about the accounts...🙄

Look, it’s gotta happen... it just has to. Fingers crossed, I guess. Seriously though, let me know how it goes once you're through the other side.

Matthew Price5 said:Who said there was a problem?

I'm just curious about the fees you ended up paying.

If everything is as straightforward as you say, it should be easy to share some figures. They don't need to be exact, just a rough ballpark estimate.

Man, why didn't you just lead with that? They hit you with a 1% fee on the total agreed amount—they usually shave that off your initial payments, though you might be able to dodge it if you catch one of those pre-holiday promos—plus another 1% fee on the loan amount itself. Then they tack on an annual fee of maybe 20-$10 depending on the contract just for "account maintenance." That’s pretty much the whole story for any standard situation. You’ve got your mortgage through Wells Fargo, and honestly, all the fine print regarding fees should be laid out clearly in your other accounts too, so just go dig through them.

Besides, there really isn't any reason to get all paranoid about it; it's not like the CIA or anything, right? Everything is spelled out in black and white in the savings and lending terms. I don't work for any of these banks or anything, but as far as I'm concerned, their services have been solid.

It feels like a shame that most people rush straight to a big commercial bank for a loan when the rates here are actually more reasonable and fixed. Of course, you need the down payment ready and you have to be willing to wait, which probably doesn't sit well with most people these days. 🤷 But now that the massive hype surrounding buying apartments seems to have cooled off a bit, maybe things will finally start to level out...