Mortgages..is it always this stressful and long drawn out experience?

Question

I would like to know other peoples stories. We had our first offer fall through before we even heard if our mortgage application was accepted. We had been accepted in principle but seems that means absolutely nothing until we have an place in mind and apply for confirmation. We then saw a flat, fixed price but we still hadnt even had an answer on the first offer application!!!! So we let it go through the process thinking by the time we found somewhere else we would know if there was to be any problems. Anyway, my main question is, we placed an offer subject to survey which was then revised as survey was fine. The bank is messing about. The seller wants us to arrange an entry date, preferably quite a quick one but we cant commit until we have our offer of mortgage confirmed and that they can do it in that time. Please can anyone who has arrange a mortgage for the first time in the past year or so tell me have they had the same obstacles? is this normal ?

We dont want the seller to lose patience and take another offer. How often does this happen and do you think most sellers will realise this and understand?

Answer 1

OMG//// Just reading that brings back so many bad memories...I feel for you buying a home is the worst, really....talk about stress.
Banks litterally ask you to pull your pants down.....it stinks. I think most sellers, knowing that you are sincere will cut you some slack and don't forget the realators involved will not want the deal to fall through and will encourage them to be patient...good luck..I need to go pour a drink...you have upset me!!!!! LOL

Answer 2

What you are running into is normal. You got pre-approved for a mortgage based on your financial condition. You did not have a home picked out, so the mortgage company will not make the loan until the home has gone through their processing. This can take up to 2 weeks, if they are not busy and everything goes right. It almost never goes right. The average time, would be more like a month.

The reason the mortgage company goes through the process is, they have to pay for the house and then you pay them back. They will not commit their money until they have answered several questions, such as the following:

Does the home have a clear title?
What is the appraised value of the home? Is is more than the requested loan?
What exactly is being paid for? (This is where the survey comes into play.)
Is there hidden damage? (The reason for a termite inspection.)

There may be more involved, but these basic questions should let you know why it is taking so long.

As long as your Realtor keeps them updated on what's going on, the seller's should be OK with the delays. An exception to this would be a seller that has a contract on another home or must, for other reasons, relocate quickly. You should have an indication of this, if there is a short deadline on closing.

Answer 3

Take a slow deep breath not all is hopeless.

1. Call your bank/broker, which ever one you are using. If you are not getting an sastified answer to your loan application, than go over their heads and get to a manager or the underwriter handeling the processing of your loan. Get some answers. If not one wants to help you, or answer your ?'s than you need to find another lender (perferbly a broker, that underwrites for many many comanies) and only has to pull your credit one time.

If you have submitted your Income documentation (1 month pay stubs, 2 years W's (not your full taxes, just the W2's), assets if you have them like a 401k, etc. that is always helpful. It makes for a strong file, and Lenders like that. You do not have to list assests if you do not want to. Some companies like you to have 2 months P/I as a backup reserve, others don't need it. If you already have the appraisal, and it was paid for at the door, than all of this can be re-submitted to a different lender. The appraisal will have to have a signed release from your current lender, since the appraisal in is the Lenders name, but that can be done.

Once a file is submitted, it goes into underwriting, and underwriting will than approve the loan, with conditions. The conditions can varie. Most contions are the title company will need to have the title listed in your new lenders name, with the correct loan amount. E & O insurance in the new lenders name also. All title company's have to do a title search for judgements, liens. Home Owners insurance will have to be in the new lenders name (or have a Insurance binder showing the mortgage clause). The person you are working with, does all of this. I am a Branch Manager, and we do all of this in house, with a processor here ordering all. and clearing up all stips so you get a clear to close. Normally the hold up time wise is getting the appraisal done, and back (that can take up to 2 weeks, depending on houw backed up the appraisaer is). If you have all this, you can re-send it to another broker, and get it closed. Sounds like you have everything. Hope this helps.

ALso:
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out

Answer 4

The clause "sale is conditional upon acceptance by lending institution for a mortgage acceptance"
protects you.

Don't ever put in an offer any other way. It's designed to protect you and each inspection by the bank, credit union or whatever protects you the buyer.

P.S. - Bank of American said during Feb, March or April, they may introduce "NO CLOSING COST MORTGAGES", WHICH WOULD REALLY HELP YOU.

So if this lending falls through, you could apply to Bof America.
You may also contact Bank of America and inquire if you could prequalify with them in case the other falls through.
They may help you and want you to establish a savings or checking account - which speeds up the process.

Don't worry about what the seller wants. You must regulate your own finances, and the lending instituions are designed to protect you and your future investment - as the lenders are investing in your home also.

GOD bless AMerica, always.
CPA-retired
MBA-Boston Univ.

I sold real estate working my way through college, and we were taught to always prequalify our clients - before the "special home" is picked. We did not want any surprises of "high closing costs" that were not addressed before we found their special house.

Answer 5

Hi!

I worked with real estate in a closing attorney's office for over a year...your question is common, and yes others have had the same problems. My advice to you is to watch the closing agents (ie the selling agent and buying agents) carefully. The buying agent gets nothing out of a real estate deal, while the selling agent makes a certain percentage of the sell. These people (buying)couldn't care less if their representative (the buyer) buys or not- so they may not push through with mortgage companies like they should. No, none will admit to this. :)

As the seller...I would call the mortgage company personally and talk to them about your application. Call not just once..but call repeatedly. Call your agent have them help you stay in touch with the mortgage co.

That's just my advice...I hope that helps.

Answer 6

I have done mortgages and refi's . I have bought and sold houses. Only ONCE did the paperwork just flow merrily along like it was supposed to. Even when I bought a house for cash, closing did not happen on time as the seller's agent left a very important document behind on someone's desk somewhere along the way.

It certainly can be frustrating, but is in no way abnormal.

Answer 7

It can be quite difficult! I would suggest that you write the offer that says you are going by the house, as long as the bank gives you the loan. This way he has to accept your offer and actually cannot accept another one until you go through the loan process. I would definitely get a pre approval from the bank. Then you will get a piece of paper that says you can loan up to so many dollars. Once you have this you can submit that with your offer and the person selling sees that you are going to be able to obtain a loan for that amount. You want your preapproval to be at the same amount as your offer. This way they do not see that you can actually loan more money than you are offer and then are incouraged to counter offer.

Good luck!

Answer 8

I work in a builders office and my husband is a realtor here in Tx. Im not sure where you are from but what I have learned is that it depends upon your lenders conditions (which by the way are getting alot more anal due to the market, overall) but you need to make sure of your lenders experience in closing properties I deal with closing mortgage loans everyday here and none of them are the same ,most have one condition or another that holds things up.But sometimes you can get a temporary lease on the property you are trying to be if the seller agrees and your sure that you qualify so that the seller knows that you are serious. GOOD LUCK

Answer 9

Yes. I was also approved for my mortgage until the appraisal. The appraisal said the house was worth what I was paying for it, but there were not any recently sold houses in my area for the appraiser to compare. I had to get another appraisal and in the end, another mortgage company. I think sellers understand, but you can always buy an option to buy which means they can't sell the house to anyone else until your option expires and you have time to get the financing ready.

Answer 10

My husband is a loan officer and it only takes him 5 to 7 days to close on a loan as long as the customer provides all of the right documents that he needs.