I made an offer on a house after receiving a pre approval letter from a lender. I have perfect credit. Now I have spent the last 60 days waiting for my closing because I can not get a final approval from underwriting with the bank I am working with. I had appraisal done and that resulted in me spending $400 on stair rails. Now underwriting says they don't like the comparables that were used in the appraisal and are asking me to pay another $600 for a new appraisal. My question is this. If I change lenders can I use the appraisal and inspection I have already paid for or will I have to start all over and pay for all these things again. How does one "shop for a loan" when you don't know if you are truly approved until you lay out money for these things? So far I have spent $2500 and still do not have a yes for my mortgage even after being given a pre approval letter. I am currently renting and have demonstrated that I can pay more than my monthly mortgage payment will be and have a very high credit score. I have a house in another state that is providing additional income but they made me get an appraisal on that one too. Does this sound right? I am starting wonder if I am getting ripped off. Please help.... more
Most Likely you will push back the closing! I would suggest to call your Attorney to see how much time you have for closing and see if he can get an extension in case you need more time if you change the lender! Good Luck!... more
First things first... Get a pre-approval. Regardless of the particular unit you are looking to purchase, you need to see what you can qualify with. The are conventional programs that are available that allow smaller downpayments but you must qualify financially for them. As Joseph stated earlier, it's about the buyer qualification and the collateral, not the loan type.
I would be more then happy to discuss this with you. Feel free to give me a call at 847.525.1366 do we can discuss your options.... more
The first thing you wan to keep in mind is "Don't commit loan fraud". If you tell them that this is your primary home, and sign papers to that fact, you are committing fraud if the property is nor nor will be your primary home.
In your case however, this will be your primary home. Depending upon the amount of work needed yu might have several options. Althought I might not be able to help you directly, I can point you in the right direction, Give me a call and we can discuss.... more
Renting is a great option, to stay liquid and snatch up a house you would want to buy and live in for longer than a typical rental. It assumes liquidity of the house for sale when in fact, between transaction costs and moving hassles and expenses this is an esoteric exercise. If you want to live spartan, you can live on the cheap and save alot of money by renting, move every year or two and fill many coffee cans with cash! NPV analysis to save $5k over 5 years and move 3-5 times during that same period? That is not practical.... more
You may have some luck looking into a 7 Year ARm which may get you in the mid 4%'s depending on final loan parameters. I work out of the Bank of America office at North/Clybourn so please feel free to send me a quick note or e-mail w/ any questions,-Thx... more
I'm almost certain that only certain homes qualify for Homepath financing. As for NLS, I can't comment on financing via that route.
As for rehab funds, the 203k is a great way to go and the loans are assumable (subject to guidelines) which can be a great way to sell a home in the future if we're in a higher rate environment. If you're looking to rehab a condo, unless it fits into a really small box (guidelines wise), you won't be able to use a 203k to fund that project. My company has a program that can be used on condos (including high-rises) that will allow for rehab funding in conjunction with your purchase (this info is current as of today) -- this program can also be used for investor rehab projects.
I noticed you're in Chicago, just a few miles from my office, might I suggest swinging by the office after work next week to discuss in greater detail? We can cover far more in person than over a blog (although, this format helps others as well but I'm sure you'd rather have immediate answers =).
My info is in my profile if you need to contact me.... more
It looks like you have gotten some pretty good answers already-but I wanted to let you know one other thing..
I can tell you I have seen credit scores damaged greatly by any type of collection-I know you said you did not have any, but you might want to make sure to double check all 3 bureaus -because a collection will hurt your credit whether it is old or new.
I have had collections erased from reports in as little as 1 day, and have seen the credit score go up immd.
I don't know if you have any that you might not be aware of, it does not matter what it is- it could be medical or really anything else- it still hurts your score.
Also, if you have any duplicate accounts of any kind. I have seen student loans report more than once on a persons credit- the same account, but showing multiple reports. I have seen this appear to have caused a problem. Whether it actually did, is a mystery. To be honest, the whole credit scoring process is very illusive and mysterious, and seems somehow unfair to the consumer.
Your dilemma is a good example of why.
I hope I helped somewhat.... more