Mortgage Underwriting Stories…..buying a house sucks

posted 3 months ago in Home
Post # 2
Member
1340 posts
Bumble bee
  • Wedding: September 2017 - Pearson Convention Centre

Congratulations buying a home is extremely joyful

Post # 3
Member
78 posts
Worker bee
  • Wedding: December 2013

Congrats! Lots of people buy and sell without issue but those that do have issues tend to get the most press/talked about. It really is a rather boring process when everything goes right. I wouldn’t stress too much, your realtor/broker are there to help you through the process. Just follow the dates and submit the paperwork requested and stay in contact with your mortgage person. 

Our was one of those boring purchases (really both times). First house, we offered, closed 60 days later, biggest hiccup was the cable television credit check a few days before close (just had to sign a form) and at the closing table there was a home equity line that didn’t show up as closed even though it was that delayed signing by an hour. 

Second house, no issues selling first house, closed on second house in less than 30 minutes. Absolutely no issues at all. 

 

Start your packing and congrats!

Post # 6
Member
4933 posts
Honey bee
  • Wedding: December 2014

beevincent18 :  We had some unique circumstances that we thought would be a problem, like the fact that Darling Husband started a new commission based job the day we went under contract. We also had to renegotiate when the house appraised under our contract price. But it ended up being fine in the end. The worst part was just the anxiety of waiting and thinking something would go wrong. Really, the whole process was just signing a bunch of stuff when requested.

Post # 8
Member
979 posts
Busy bee

I wish you luck. Buying a house on my own was easy for me. Had little if any interaction with the underwriters. Selling was even easier and I sold 9 months after buying and still made (a little) profit… I have heard no horror stories in my city.

My only issue was you always get approved for WAAAAAY more than you need… and I REALLY had to tell people no… stick to MY budget. (that was when they were picking out homes to look at that were $30k+ over budget).

I would honestly not worry about it. You were approved for above what you needed and the only thing that could possibly hold you back is if the inspection went bad and you needed repairs.. but here in TN the owner was only allowed ~2 weeks to have it ALL done or I could walk away and get my earnest back. And they WANT to sell their homes bad usually and move on so it would be rare the seller is dragging butt.

Post # 10
Member
138 posts
Blushing bee

My experience was frustrating. I have a relatively low income (work at a non-profit) but have a well paying second job to supplement and a lot of family money in my name. I was pre-approved for $20,000 more than the house I ended up loving and wanting, and was planning to put 30% down. I also could have bought the home outright, but didn’t for tax reasons.

My parents, my realtor and I were all shocked by how many hoops I had to jump through to be approved for my home. I had to provide my college transcript from 3 years prior, to show that I am reponsible and had good grades, and write a letter explaning why working my second job wasn’t a hardship and was easily do-able. I was quite young and single when I bought the house, so it was on a single income, but my parents and I still wonder how anyone is able to buy a home if someone in my admittedly privileged situation was so heavily scrutinized.

Post # 11
Member
979 posts
Busy bee

beevincent18 :  That is great! I made sure not to use my realtor again that I bought the house with when I sold. And its a good thing they are trying to move fast. I did remember after reading above that apraisal can affect it… Sadly (for the buyer) I think most appraisals can land in the seller’s favor so you pay more for the house…  as in it appraises worth way more than it is…??? but that wouldnt SLOW your buying in that case. But atleast your home will have more value???

I sold for $13k more than I bought after 9 months of owning (my goal was to walk away not owing anything so I listed at a “safe zone”)… and I have doubts that my house was worth that much more in that amount of time.. but who knows maybe it was… we didn’t have to go through renegotiating so … thinks moved swiftly… 

I think things will be just fine for you both… and congrats on the new home 🙂

Post # 12
Member
979 posts
Busy bee

sweet844 :  Why do you think they did that? That is ridiculous. I had out zero money down and also lower end income with school loans etc? I had high credit score.. only thing on my side? I would look into that… sounds like some form of discrimination. Sorry to get off topic.

Post # 13
Member
5037 posts
Bee Keeper

beevincent18 :  most of the horror stories I’ve heard are from people with that have unusual circumstances/finances. If you are just a couple of boring W2 employees with a regular downpayment it should be fine! 

Post # 14
Member
108 posts
Blushing bee
  • Wedding: August 2018

Fiance and I are closing on our house tomorrow and it’s honestly been a pretty smooth process.  We took our time and weren’t in any rush to buy a house/move (we are in an apartment we very much like and were buying in the same city).  We started thinking about it because fiance received inheritance money earmarked for for a down payment on a house.  We started looking casually in September, i.e. poking around online, going to open houses on our own, etc., and then got more serious a couple months in, at which point we started working with an agent.  We came across THE house in early December and put an offer on it.  First house we put an offer on and we got it.

I think it was helpful that we are not in a hot competitive market, so it wasn’t overwhelming or exceedingly stressful like folks in hot markets describe.  We were the first and only offer on our house which had been on the market for like six months, so it’s not like there was any competition for it (though there was a bidding war on the house across the street that sold in the spring, but the difference was that that one had been nicely fixed up and had more bathrooms).

The process of getting the loan has been smooth and very typical – we didn’t have any issue getting approved for it because we ended up way under our budget.  Got all our ducks in a row on that pretty easily.

We also haven’t had to deal with any significant shenanagins from the sellers because they’d vacated after putting the house on the market months ago, leaving us with a mostly empty house to work with.  One annoyance was the seller (presumably) naively putting down in the disclosure that there was no knob and tube wiring, only to have our inspector discovered that the entire house is knob and tube.  And then the other night, our agent calls us and says she’s been talking to the listing agent, who has told her that the sellers wanted him to help them sell the leftover furniture in the house (dining room table and chairs, a hope chest, and some Ikea wardrobes).  Listing agent was miffed, and so are we.  We told our agent to tell the listing agent and sellers that at closing, the furniture would either be gone or would remain, but if it remained at closing it would become our furniture and that we were not going to partake in helping sell it because that’s stupid and inconvenient.  Sellers had like six months to sell the furniture.  The furniture thing was like the biggest snafu we ran into, and it’s not even that big a snafu because we don’t care either way if the furniture is there or not at closing – seller just has to decide to expend the money and effort to get it moved out by today, or just forget about selling it and leave it with the house.  Seriously, if you sold it on Craigslist you might get like $300 for the lot of it.  

Then after we close, the remodeling fun begins.  Also the period of several months during which we get to pay rent AND mortgage.

Post # 15
Member
138 posts
Blushing bee

itsachickenwingthing :  That’s a good question. I was so upset about it at the time, but once I was approved and moved in I kind of put it out of my mind and don’t really think about it unless I’m in a conversation or see a board topic like this one. It was back in 2012,so a few years after the mortgage issues of 2008, maybe that plays a factor? I also have excellent credit and am a saver so on my own I had saved a decent amount of money and there’s nothing in my credit history that would be concerning. But now I’m really curious why exactly I was so heavily scrutinized.

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