(Closed) What do you do when 2 days away from closing you receive horrible news?

posted 3 years ago in Home
Post # 91
Member
1811 posts
Buzzing bee

I have been an underwriter for nearly 23 years, both residential and commercial (and even consumer) including all government programs, state and federal, and I agree with pp’s–this guy is either up to something and is possibly making more basis points on the back end for selling a FHA to you or he is truly not as knowledgeable as one would expect.

Each update convinces me even more you need a second opinion. 

Post # 92
Member
1051 posts
Bumble bee
  • Wedding: July 2015

elsa0984 :  I agree that it’s best to not have PMI if you can afford it, but I wouldn’t say that no property is worth it. We lived in a very expensive city for years and paid the same in rent that our current mortgage payment is (with PMI). Both of our families live over an hour away, so saving while living with parents wasn’t an option due to our job locations. We bought last year with 10% down and are paying PMI. We agreed to PMI knowing that we would try and get rid of it sooner than the 5 years or so that it would take us to get to 80% equity. We are working with our bank now to have our house reappraised because of some recent renovations and the increase in overall market value around us. We knew that we got a good deal on the house when we bought which was a big reason why we chose to buy when we did (before having 20% down).

So, if we are able to get rid of the PMI, that will save us roughly $110/month. To me, paying $1430 for PMI over the course of 13 months makes more sense than paying rent for the 2-3 years that would have gotten us to 20%.

Post # 93
Member
5365 posts
Bee Keeper
  • Wedding: May 2016

Omg I’m so sorry this happened!! I’d be freaking out too! This process is stressful enough as it is… 

I know my financial situation is completely different and we don’t have an FHA loan…but when we went under contract on our house, I had literally been at my first full time job for 16 days and my second part time job for 3 weeks. I also quit my second job like a month after we went under contract. Something seems off. 

Post # 94
Member
203 posts
Helper bee
  • Wedding: May 2016

Banks are tough. My husband and I bought property with nothing on it with intentions to build at some point and it was hell getting a loan because of work history. Even with us putting 50 percent down, it was still an issue because he had only been at his very good job with a great salary for 16 months at the time, and they demanded that it be a solid two year work history in order to do the loan. I know part of this was the fact that it was a five year loan for a crap ton of money and it was for land, so definitely a different situation, but moral of the story is that this process is very stressful and comes with a lot of surprises (not good ones). We ended up needing a cosigner, not just any cosigner but one that had collateral (house, property, etc) until he got to his “two year mark”. Once he did, we were able to be the only ones on the loan. I understand Bee, it’s an excruciating process. I really hope it works out for you! 

Post # 95
Member
6441 posts
Bee Keeper

cmbr :  I kind of guessed ti was the income issue for why he suggested that, meaning they couldn’t put 20% down…I’m not so sure now that I’m reading through all of her updates.

Post # 96
Member
980 posts
Busy bee
  • Wedding: June 2012

bellanotte11 :  We are in the process now of getting the refinance done to get my parents off the loan. Which has been good and bad – good that it wont cost us anything upfront, bad that all the costs get rolled back into the loan so it counteracts all we did to pay down principal, good because the interest rate now is slightly lower. Overall its been a big pain and I will be happy to have it all done!

We went with Chase and I will never forgive them, lol!

Post # 97
Member
767 posts
Busy bee

 

bellanotte11 :  I’m not a expert either, but our real estate agent has been at this for 25 years, and told us the problems that people were having with FHA. I guess the idea is supposed to be that you get a house with less problems, but apparently getting a house that passes all the rules is heck. His own son decided to stop house hunting, get the convential loan then buy a place. His own son couldn’t make the fha work.

Just remember, that it’s not over yet. Maybe it would be best to get a second opinon on the type of loan and how to go about this. Do you know people that can recommend a good agent? I asked around and found someone that way. Hang in there! Maybe the not getting this place was meant to be. As for being technically homeless, you won’t be the first person to be in that position while trying to move. I was ready to move into a tent in a camp ground if we didn’t find a place in time for the move we made. It happens! We were housemates with people that owned houses for years. Maybe putting your things in stroage then renting out a room could be a option for you? Worked for us! haven’t used the site in years, but we always used roomates.com.

 

Post # 101
Member
767 posts
Busy bee

 

 

bellanotte11 :  follow your instincts, I think still good to get a second opinion. If you think there’s something he’s not telling you, you may be right! Wouldn’t hurt to see what you can find out. Good luck!

Post # 102
Member
113 posts
Blushing bee
  • Wedding: January 2016

bellanotte11 :  No offense but as a realtor I can tell you it appears your lender didn’t do their fur deligence with your file or just doesn’t know what their doing (likely both).  This should have been caught weeks ago and most lenders won’t touch a loan if both parties haven’t had the minimum two year employment (unless one of the applicants has a very good profile). Your best bet is to get some second opinions from other lenders and try and find a co signer. I hope all works out.

Post # 103
Member
1811 posts
Buzzing bee

bellanotte11 :  man, this guy is really sketchy. An appraised value is an appraised value regardless of product. Appraisals are governed by a body called USPAP and are uniform across the board (with minor considerations per each product–for example VA has something called MPRs or minimum property requirements). But the way value is arrived at is the same no matter what. FHA new construction is a far trickier product than conventional new construction so I have no idea why he switched it.

Post # 104
Member
224 posts
Helper bee
  • Wedding: December 2014

bellanotte11 :  Hi, I am a banker (albeit not a mortgage banker, I finance commercial multi-family real estate). My husband and I just closed on a house yesterday. From reading your experiences and responses from your mortgage broker/bank lender, it seems that they have other issues with your loan underwriting that they are not letting on (not just the income history related  to the part time job). I think you should consider asking them about you and your husband’s holistic underwriting picture. And then consider switching lenders if after hearing their response and reviewing your own financial picture (credit/ DTI ratios/ work history, ect) things do not add up. Be objective about this; try to think about it from a long term risk prospective.

It seems that perhaps your originator had no problem with your file, but then when it went to underwriting a particular underwriter had an issue with it. However, that is not to say every bank/mortgage banker  underwriter will have the same issue. In any case, I think a mortgage broker (asumming you are working with a mortgage broker over a direct bank) would be able to provide you with more options outside of obtaining a co-borrower ( even if it is just lowering the amount of loan you are eligible for, with you and your husband coming up with the difference).

You mentioned you are in California. If you are interested I could recommend the mortgage broker we used. He was amazing and had a “can do” attitude; a true problem solver within reason.

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