Is Ann Around? mortgage people!!

Roni,
Trust me on this one, your scores are A LOT higher than mine were when I got my mortgage, and my loan was "placed" with Chase Manhattan Mortgage. Lenders don't make money unless they LEND you money, so yes, I think they are giving you the runaround, and yes, I think they are going to approve your mortgage -- give them what they ask for, and tell them to get on with it.

In my situation, my downpayment and closing costs had to equal my 3% requirement -- the seller actually split the closing costs with me, so I'm not sure what the breakout is between your downpayment and the closing costs that the builder is paying? One thing I am pretty sure of is that the builder has worked out some special deal for THEMSELVES with this lender, so the closing costs they pay are probably slim to none. They get to sell their houses, and the lender gets to collect interest on their loans...

Don't let this get you down...I closed on my house on May 23, 2000 --my lender called me 3 days before my closing and wanted to push my closing back a month, because they hadn't gotten an answer back from the underwriter - I told them no way, I had to be out of the place where I was by end of May...almost majically, I got a call back from them in 3 hours saying -- everything is fine, you've been approved, see you on the 23rd...go figure..

Remember, THEY WANT YOU to buy that house!

 

They would only make that condition if it was advantageous to them. It could be a disadvantage to you.

What is the amount of the closing costs?

 

If it's any help at all.....you aren't the only one who does the complete run-around for the mortgage company. I thinkMomof3 is going through this right now. My neice just closed on a new house and the paperwork they made her produce with her fiance was never-ending. She was typing up letters and statements until the very end.

They needed a letter as to why her fiance didn't work for two months before he started his new job in February. Duh! He worked both jobs for 3 weeks. They just saw the end of year W-2's from the old job and the new job start date.

She had to write a letter explaining where all her down payment money was and why it wasn't all in her account. She was waiting for a payment from her old landlord due in 3 days, but she had to write the letter anyway. She had to explain her student loans, her credit cards, etc., etc.

It was really never ending but she gave them EVERYTHING they needed and she closed with no problem at the end. I can already anticipate the problems we will have if we have to apply for a conventional loan in dealing with my husbands overtime. Typically they don't allow you to claim it... but it's not voluntary where he works...it's mandatory. He has at least $10,000 to $15,000 in overtime each year. Luckily we can prove that it's been that way the entire 16YEARS he has worked there. I am still anticipating a fight.

Good luck. Play their game and give them whatever they ask for.

 

Mortgage Prepayment

This is a little off topic but is very interesting. I am also planning on getting a mortgage this fall, so I have been looking at mortgages and such. Everyone with a mortgage should look at this prepayment calculator at <http://www.realhome.com/cgi-bin/prepay.cgi>

It is mind boggling how paying your mortgage every two weeks instead of monthly can reduce a 30 year note by about 9 years. If you pay an extra $100/month on a $100,000 house with about 3-4% down, and pay it every 2 weeks instead of monthly, you could pay a 30 year note off in under 15 years.
I am sure lenders don't want you to hear this though. Does anyone here practice this?

 

Re: Mortgage Prepayment

yep. Bank of america will set your payment up to do bimonthly payments and it makes a big difference. My parents got a 500k mortgage and just by adding 1500 difference and by paying bimonthly we cut off so much time and interest that my Dad thought it was incorrect.

I had to run a stack of amortization schedules to prove the point. He looked at them line by line. Guess he didn't think my top 10 MBA taught me anything

We had to pay 400 or so to do it w/Homebanc but it was worth it. Stupid to have to pay to set it up, but worth it in the long run. and we only took out a 15 year one to begin with. Our goal is an 8 year payoff. We also overpay every month to principle.

Remember also, on biweekly payments you're actually paying 13 payments per year, not 12 so that adds up.

Even if you just add money in the first 5 years of a loan, it makes a HUGE difference on the accumulated interest. Kindof fun to see what combo approaches will do to your mortgage.

500 extra a month, plus biweekly or bimonthly payments are like waiving a magic wand over your interest calculations.

 

Re: Mortgage Prepayment

YOU CAN DO IT FOR FREE, NO $400 fee!!!!

PRINT AN AMORTIZATION SCHEDULE...month 1 pay payment 1 plus principle from month 2 added to the check.

You now have <358 payments left.

Month 3 pay payment 3 plus principle from month 4.

Now you have <356 payments left.

DON'T FORGET TO EXPLAIN EXTRA LARGE PAYMENTS ON COUPON...SHOULD HAVE LINE FOR "EXTRA PRINCIPLE PAYMENT"

IF THINGS GET TIGHT...YOU CAN ALWAYS STOP EXTRA PAYMENTS....OR IF GRANDMA LEAVES YOU $$$$ ONE LUMP SUM WILL PROBABLY SAVE MANY YEARS...

 

Roni,

I only read your post in this thread so someone may have written this already, but as long as you remained in the same field, the number of jobs you've had shouldn't matter. This is what I was told, because I was a contract IT consultant for over 2 years and jumped around alot. I was told by my loan officer that as long as it was in the same career arena, my different assignments didn't matter. Especially since I was never out of work.

 

Roni,
I wanted to support what newcomer was saying. I am moving but am staying in the same field (teaching) and they also told me that as long as it was in the same field, it is considered continuous. Though I haven't moved as often as you described in your situation, I would think the situation is the same.

Best of luck to you! We are going through this together it looks like!

The race is on!! Will Roni or NanaC get approved first??

Notice I'm thinking postive thoughts, that is, both of us approved!

LOL

 

P.S., I think you have the lead!

 

Roni try not to get too upset. This is the "joy" of the underwritig system, they usually make you jump through some hoops along the way, but I am sure you will be fine.

Right now I am waiting to hear from the loan processer(nice name for underwriter LOL) then I will talk with the closer. We are just waiting on FHA to come out and appraise the property, once they do this then the ball "should" start rolling quickly.

Don't worry

 

You know, Roni, your experience reminds me of the one loan that I actually went through the "process" of years and years ago. Turns out, we could not get a title because they had built on city property. We found this out after waiting a LONG time for approval. We finally gave up but then they called and said we were approved.

My point is that I remember the many, many requests for info, etc...and it all worked out! I'm sure it will for you, as well. It'll be irritating in the process, I'm sure, but it will work out!