help with a mortgage?

Question

hey im just wondering if its all legit for a mortgage company to say 'yeh we'll give you 100% mortgage' and then a couple of months later say 'No we wont give you 100% mortgage but we will give you a mortgage providing you put 5% of the cost down' ..... isnt that time-wasting and mis-leading for us?

Answer 1

It depends on the property and the market. They are trying to cut down on sub-prime loans, etc. If you have had any credit activity (including canceling credit cards, making any on-credit purchases, etc.) that may reflect poorly on your credit and now you are in a risk bracket and need something to secure it.

Answer 2

A couple months ago it was easy for most people to be able to get 100% financing, but the market has changed and now it is much more difficult. Your mortgage company may be correct or there may have been changes in your credit score or guidelines with their lenders regarding your score. Talk to your loan officer they can explain why the new need for a 5% down payment.

Answer 3

It sure is. It does seem to happen a lot though.
A few things to keep in mind that may have happened as well. It's possible that the programs available to the company may have changed in the last few months. That's happening a lot lately, they may not have the 100%.
The other thing is that you may not have qualified for that program. If your credit, income, assets or some other part of your application weren't verifiiable or sufficient they may have just placed you in another program they can get for you.
Either way they should have been able to tell you this within a few days of your application. The most frustrating thing with any mortgage application is not being kept in the loop.

Answer 4

With the way things are going with the mortgage industry they probably can no longer finance you 100% of the mortgage. Shop around for another mortgage company that will finance you 20% and have your lender finance only 80%. You might get a better rate that way. If you finance 100% of the mortgage you end up paying higher interest rates and also they add PMI on top of your loan. It's in your best interest to either come up with the 20% down payment or have another company finance 20% of the loan.

Answer 5

Did they say 100% financing BEFORE they saw your full credit report, application, income, and asset information? If so, what's wrong with that? You can only expect an accurate answer regarding your specific situation AFTER you have provided full information for underwriting your loan. Every borrower and property and their scenario is different and must be handled on a case by case basis.

Answer 6

When you apply for a loan, the lender bases his conditional decision in part on the information you provide...income, assets, etc. Once the lender finds those claims can't be verified, he offers different terms that compensate for the differences. There could also be a reason connected to the property, for instance the structure is a manufactured home rather than a stick built home.

Read your loan approval notice. I'm sure you'll see wording that indicates the approval is conditioned by certain items being obtained and/or verified.

As for the time frame of a couple months, that could be due to the way you provided the required verifications, or they could be inefficient. If you provided the required information, i.e. verification of income and assets and whatever else they asked, in a timely manner, counter-offers should be made within a day or two.

Answer 7

no it's not because guidelines change all the time.
if you have a 620 credit score you can still get 100% financing.
if you have 400-620 you can get FHA with 2.25% down payment