Buying a first home....why is it so hard?

Question

My hubby and I are in the process of buying our first home. Our bank doesn't do 30 year mortgages so they sent us to PHH mortgage. Well this company has been putting us through the ringer. They ask us for one form and then when we turn that in it's not enough and we have to have something else filled out. They even made us turn on all the utilities in the house that we DON"T OWN YET in our name before the closing date. We are getting really fed up. Has any of you ever heard of PHH mortgage and have any horror stories about them? I'm so afraid we are getting screwed over and we don't even know it. Thanks!

Answer 1

I have purchased two homes and the mortgagor NEVER told me I had to transfer the utilities before I've moved in. I've also never heard of a bank that wont let you take out a 30 year mortgage. The longer the loan the more money they make. Definitely check them out at BBB.com. I would also STRONGLY consider going to a different bank. Something is not right here. Good Luck!

Answer 2

If you don't have a great credit rating, they're taking a chance on you here. They want to be sure that you're not doing this on a whim, but that you're committed to the process.

But you should be able to learn what hoops they want you to jump through to complete this. At the next meeting, list the things you've done so far - the forms (by form # or name, if you have them), the credit checks, the additional information, the utilities, etc. Ask them if they have any other checks that are needed, (or are likely to be needed); what they are for, when are they needed, what are the costs associated with them. This will give you a head's up on what may be coming, and let them know that you are getting tired of the rigamarole.

Ask also about any other closing fees, costs, etc, and be sure to ask for a complete list. Say you don't want to be surprised by any "unanticipated" fees at the last minute, so you want a complete list so that you know what's coming. It doesn't guarantee that they won't do this, but it might help.

If you've got a fair amount of money invested in this, you may as well finish the deal with them. Then when interest rates drop, look around for another mortgage company, and consider refinancing. Ask around with friends, co-workers, etc, and see who's refinanced, where they did this, how it went. Get lots of opinions - it will always help. If you're not a member of a credit union, look into joining one. They often do a better job of this sort of thing than the commercial banks do.

Answer 3

If you do not have good credit and your median scores are in the mid 600's then you will have to go through this.

It took a while to close on my first house but not because of my credit...I got swindled by the buyer and it is a long story....bottom line was once we are approved then I get a call that it didn't go through so they are going through another company so I have to resubmit all paperwork again.

You are the second person I have heard (I'm the first) of that took a long time to process to buy a home period.

Also, I found out if the home is a manufactured home, lending requirements are a lot more intense than a single family dwelling (mortar and brick house).

However, I have never heard of turning on the utilities in your name before closing let alone approval. Check the Better Business Bureau and most states have a Department of banking and finance bureau that you can check with.

IF it isn't too late, find another company! I wish I had.

Answer 4

I have my mortgage with them, and I did not encounter any of the problems you describe. I went through a mortgage broker, however; so I had no direct contact with PHH during the approval process.

The part about the utilities is weird, but I know that PHH is a legitimate company. Perhaps your real estate agent could help you understand some of PHH's requests.

Answer 5

I'd recommend getting out of that deal as soon as you can, how do you set up utilities in a home you dont own, that sounds like bull crap to me. It sounds like youre too far into it to end the relationship with them but if you can I'd recommend doing so quickly. Then check eloan or bankrate.com and find a loan that fits your needs. DO NOT UNDER ANY CIRCUMSTANCES GIVE ANY MONEY TO PHH MORTGAGE they'll probably say that you have to buy out of the agreement or some bs like that, if they do tell them no and that you lawyer has agreed to speak to them regarding the situation (say it like to b/c it will make them think you've already spoken to a lawyer and might straighten them out).

Answer 6

Phone your state consumer advocacy group, found in the blue page section of your phone book. Start with the State Attorney General's phone number if the other isn't obvious and someone should be able to direct you to appropriate help. This sounds totally fishy, I hope you haven't been scammed. Where do you live? 30 year mortgages are standard. Hurry and get on the phone and get help.

Answer 7

GO TO A DIFFERNET LENDER!!!!

Are you a Costco member? If not, pay the $40 and become one and go through their lenders. You'll always get a deal through them.

Or just apply online via lendingtree and see what the best offer you can get as far as interest.

Just change banks. You can get a 30 yr. loan almost anywhere.

Now if you qualify for how much you're asking for - that's another story.

Answer 8

You need a different lender. Asking you to turn on the utilities before you are in title is ridiculous.

Sounds to me like you are dealing with "fly by night" mortgage.

Let me know if I can help.

Answer 9

Check them out at the Better Business Bureau site:
http://search.bbb.org/

Answer 10

attempt a diverse shop. the place I shop, Publix food market, you may get a equipment of no longer straight forward boiled eggs. they arrive vacuum sealed, six to the equipment. they are interior the refrigerated section, close to the cheeses, and that they fee approximately two times as much as customary eggs.