FHA?
I always thought the process of buying a home would be tough and stressful. But I always figured it was the actual act of moving that was the stressful part. Well, it seems that I was wrong about that. I am fortunate enough to have one of the best Real Estate Agents in the area working for me. But alas that doesn't change the fact that the mortgage companies are a pain in the ass. I am getting an FHA Mortgage. It is a good rate and only 3% down, which is nice. But I made the mistake of going to a big bank to do this.
Apparently in the last year or so, the rules for FHA mortgages have become very strict. The banks obviously want to ensure that the person who is applying for a mortgage is able to pay the mortgage and has no other debts that would cause hardship. In my case, it is a fairly easy case to prove. I have a great credit score, and almost no debts. The mortgage payment for me, including escrow will only be 1/5th of my monthly income. Can't complain about that! We were supposed to close on April 16th according to the contract. The Sellers are not being very flexible and have threatened to cancel the deal a few times now. I expected some delays with closing, but so far we are going on an extra month! We have been pushed back about 4 times now.
The first time, I don't even know why it was pushed back... The second time it was pushed back because the appraisal wasn't high enough to include our seller concessions, which meant we had to adjust the mortgage to adjust for that. The third time, was because apparently the adjustment that the bank did to adapt to the loss of concessions, was slightly illegal. The forth time it was pushed back due to a minor issue on my wifes credit report, which I had brought up a few weeks before, asking if I needed to deal with that. I was told no, it would be fine - I just need proof that everything is being paid off.
But alas, I was told wrong, and at the last minute they said oh, we need that information. So a 15 minute conference call was required between banks to settle that, which delayed our closing another week. But alas, this is our final week... And we should of closed yesterday. What is the delay? I have no clue! I am told everything is fine, and ready to close. But the case is still being reviewed.
We have to be out of the apartment this weekend. Any more delays and we will be out on the street. I am dealing with Wells Fargo. A well known bank, but also a key bank in the global banking empire. I am told now that a better bank to deal with for mortgages in the Buffalo / Niagara area is Citizens Bank. Apparently their FHA process is a little smoother then most banks. I am usually a fairly laid back, easy going guy. But the pressure is on, and I do not like being cornered.
I am very much like my wolven brothers. You corner me, and I will become quite vocal and in your face. For much of the initial part of the mortgage process I was letting my wife take care of much of the correspondence. But she is way too stressed these days, and very pissed off at the mortgage company. So I have been dealing with things. I feel like I have to kinda baby sit things, else nothing gets done. It is funny that you can walk into an auto dealership and slap down a down payment on a 100k automobile, and run a credit check and usually drive home that day with the car and car loan approved and in effect.
But as for a house... No? Why not? It takes longer now to process a home mortgage then it did 40 years ago without the use of computers. Sure there is a lot of extra review which has to be done, but not a months worth of review! I imagine that my file has likely been sitting mostly untouched on the processors desk for the past few weeks. Its probably been read cover to cover once already, but its still sitting there, lost in the shuffle. Ya know... standard ops, right? I will be glad when this is all over with, and we finally move in.
My wife is already suggesting that we eventually refinance when we can, in order to get away from Wells Fargo. That would be expensive, but I guess we will see how things are handled after closing. I had recommended my Mortgage Agent originally to a co-worker, but after hearing what I have been going through, he has decided to go with another mortgage company. I am glad that he has made that choice. UPDATE: We moved in! I had to basically threaten the bank with ending the deal and a lawsuit in order to get anything done. Once I did that, it was amazing how quickly things moved along.