To anyone buying a house right now

I know we talk on here about homes and loans. I've been in the process of buying a home since the middle of Sept. A word of warning...

THE LOAN PROCESS IS A COMPLETE PAIN IN THE ARSE RIGHT NOW.

Just thought I'd throw that out there. I've never had a closing occur later than the date it was scheduled for. Today I was told it may be "a day or two late". Much fun when the appliances are delivered, fences are built, and movers are ready to go on schedule. I'm not laying blame here...just a word of advice. Also, to avoid the internet phenom of "blame the victim" I've got great credit, all my documents are supplied within a day of request, and I'm a really nice guy.

Xceler8x wrote: ... ... I'm a really nice guy.

This may be the problem. Nice guys tend to get walked on.

Banks are scared to lend right now. As a former commercial credit analyst, I am sure the analyst is trying to cover his "buns" by analyzing everything. Problem there is people over think what's actually happening. (Person with means and good credit wants a house) Should be a simple process but gets bogged down because of everything happening in the market. A knee jerk reaction in some way.

Good luck Xceler8x. Hopefully it will get done soon. Congrats!!

The delay is more a factor of that particular lender than any change in lending policies.

They have tightened up the minimum credit scores required, and we've lost a few types, but the process is the same today as it has been for several years.

Shop a different lender. For by no means are they all squirrely. I've various friends and family that are still happily and actively buying and selling houses, without incident or banking difficulties.

Thanks for the advice fellers. I'm 99% there so this is more of an informational post than a cry for help. I'll be in the place by the end of nxt week. Long road tho.

We almost had the same thing with closing documents "being delayed" but everything worked out and we closed on schedule - and that was with an 800+ average credit score on our end so yeah it's not really the people as much as it is the banks.

Oh and this was back in May too, before all this recent "fun".

what we all really want to know is.......

how BIG is the GARAGE???

congrats!

924guy wrote: what we all really want to know is....... how BIG is the GARAGE??? congrats!

And does the garage have central air? (Mine will someday)

How does that go against any other time. I think I threatened to take the time to drive 350 miles to my lender and whip his @#$ if he did not get it closed. I still do not understand how you can hav paperwork for a month and then the last minute say you are out of time.

I found a house i want that is for sale, it is accros the street from the parts yard!

foxtrapper wrote: Shop a different lender.

Seems unnacceptable, even in this climate.

I went through Chase. They were pretty good--but this was 5 years ago.

Well, we just had an offer accepted on a HUD forclosure yesterday - $45k for a 2100sqft 5-bed with a 2.5 car garage & dual 200amp service(it was 2-apartments). It's 2-doors down from the auto-body supply store & about 1/2-mile from Napa, so I guess that's OK.

I'm curious how bad all this is going to be for us too...

THE LOAN PROCESS IS A COMPLETE PAIN IN THE ARSE RIGHT NOW.

As it should be, IMO. Maybe the banks will stop lending to fiscal berkeley tards, and we the responsible taxpayers won't get bent over again.

poopshovel wrote:

THE LOAN PROCESS IS A COMPLETE PAIN IN THE ARSE RIGHT NOW.

As it should be, IMO. Maybe the banks will stop lending to fiscal berkeley tards, and we the responsible taxpayers won't get bent over again.

Unfortunately the system will just find some other fiscal berkeley tard to bail out with the taxpayers dime.

Maybe I can convince the govt that my business is vital to the health of the economy. Then I can jack up my salary until I run the business into the ground and the govt can bail ME out.

Let's see I keep hearing that "the govt ought to do something about this $hit" and then when it does you still complain?

"the govt ought to do something about this $hit"

I don't recall ever saying that.

This and other forums have been full of it for years.

It's part of the purpose of the internet, to provide a venue for aimless whining.

Crappy lenders have always been around. I walked out of my first closing because the company I was dealing with had the paperwork wrong. By this point, I was only dealing with underlings because the owner of the company wouldn't talk to me anymore. There were some great facial expressions and some really fast work on the part of the lender, let me tell you.

There was a huge spread in today's scandal rag about foreclosures. It seems that the local area has had a big jump in foreclosures and the majority have one thing in common: a big second mortgage. That means people were pulling the equity out of their houses for whatever and then the strain of making the payments caught up to them. The lenders are putting a pinch on those who are applying for mortgages, unless you are perfect or nearly so they aren't lending. It sounds harsh to the 'social engineering via government' crowd, but that's the way it should have been all along. I had to jump through all kinds of hoops to buy my first house, why shouldn't others? The only 'breaks' I got: the builder was willing to help with closing costs and the down payment was 10% instead of 20% because it was new construction. I had to answer all KINDS of nosy questions about my financial history.

Many of the foreclosures down here also share another common factor: the bank and the owner had tried a 'short sell' (where the bank agrees to take less than the mortgage balance to avoid a foreclosure and the owner walks away from the sale with nothing) but there were no takers. That goes back, I think, to the mortgage credit crunch.

FWIW, there's a foreclosure that's right around the corner from me, these folks were spending every dime they had to keep their son in college. The investment advisor my wife and I hired some time back had one really big piece of advice: start a 529 education savings plan while she is young, add to it if we could but do not make it priority 1. His advice was to make our 401's and other long term investments #1, and to have her get student loans etc when it came time for college. It seems harsh, but think of it like this: there's all kinds of student loan and scholarship programs out there, why should we eat cat food while she goes to college?

I have an ex-girlfriend who is a Mortgage Banker. She sometimes works 60 hours a week trying to get all the paperwork in and getting the loose ends tied up for her loans, and that was for the ones where the people actually could afford the houses they were buying. She also took a lot of crap from her clients, some of whom were actually insulted that they were being asked to prove their income. The worst was from some 20 something computer genius from Austin who couldn't understand why defaulting on his student loans was keeping him from getting a loan, after all, he had a six figure salary.

She was always talking about quitting the business and taking a big pay cut to get into nursing.

Jensenman wrote: There was a huge spread in today's scandal rag about foreclosures. It seems that the local area has had a big jump in foreclosures and the majority have one thing in common: a big second mortgage. That means people were pulling the equity out of their houses for whatever and then the strain of making the payments caught up to them.

Home Equity loans have always been one of the shakiest deals. They are predicated upon the premise that values will always rise, which we know does not always happen.

If values just stayed stable then there was really no reason for the owners to try very hard to sell since they wouldn't be getting any/much money from the sale so a lot of people have always just let them go back.

Unfortunately in many states your home is collateral for all kinds of non-mortgage type loans, even credit cards so people lose their homes over credit card disputes. There was a well publicized case 10-12 years ago where a little old lady lost her house over what began as a $20 credit card debt, but was run up to thousands of dollars in fees.