Housing woes

[tontod]

I was all set to close on a condo on 7/17. Early last month I applied for a loan, at that time I was ok'ed for a 10% down payment. Fast forward 2-3 weeks later, I was told by the mortgage/loan officer that a 15% down payment would be needed, so I scrambled to come up with funds. Then, I was told that I would need to pay off one of my credit cards, which I did. Then, yesterday I was told that I would need to pay an additional 5% down for a total of 20% down and need to have 2 months of mortgage payments in reserve in all my accounts. I think this is BS, especially since the mortgage commitment day is today, and them making a major change the day before. I was prepared and had the funds for 15%, but not 20%. Not sure if they just dont want to give me the loan and play games, or what. I talked to my attorney to cancel the deal.

I talked to a few other lenders, and in the Boston area for a condo purchase, they all require 20%. Not sure why the one I went through was ok with 10% initially. My attorney wsa surprised they accepted my application with the 15% the second time. If the lender had told me when I initially applied last month that I would need 20% down, things might have turned out differently.

Summary - going through mortgage financing in this market REALLY SUCKS!!!!!!

 

[vi edit]

I feel your pain. We bought a lot last fall with thoughts of building this fall. At the time we needed a 10% down payment to get started on the construction. Checked into a bank three weeks ago to discuss things...still needed 10% to get started. Start interviewing some builders and get some ideas on pricing and go back to the bank.

A week after hearing we needed 10% it was changed to needing 20%. We had $30,000 to get started. We don't have $60,000.


Booo.

 

[tontod]

Originally posted by: vi edit
I feel your pain. We bought a lot last fall with thoughts of building this fall. At the time we needed a 10% down payment to get started on the construction. Checked into a bank three weeks ago to discuss things...still needed 10% to get started. Start interviewing some builders and get some ideas on pricing and go back to the bank.

A week after hearing we needed 10% it was changed to needing 20%. We had $30,000 to get started. We don't have $60,000.


Booo.

Yeah, sounds like a sucky situation. I talked to my attorney, going to get my deposit money back.

 

[tontod]

The deal is definitely off, but the seller's broker is stalling releasing the deposit money, really pissing me off :frown:

My attorney said they are being dicks about it, I should get it back. They are haggling over a minor technicality - the denial letter came from the MI company, not the actual lender.

Also, my attorney asked the loan officer to return the appraisal fee. She hasnt responded yet, leading me to believe she wont return it. I'm debating whether its worth it to go to a small claims court to recover the $350? The argument would be that the appraisal should never have been ordered. I'll talk to my attorney regarding this, but was just wondering/curious if any of you have gone through anything similar.

 

[KentState]

My friend is going through something similar. They were going to buy a house in the Atlanta area and agreed to a loan of 5% down and a 4% fix for 7 years, then adjustable. She has had 4 prior home loans without a missed payments, 780+ credit ratings each, and probably make over $230k combined. Well, just last week, Atlanta was put on the high risk list and now they want 10% down and a new loan at 5% fixed for 30 years. With fees and everything, that's almost another $25K down. They have pretty much decided to pass on the home and just keep renting.

Personally, I plan to keep on renting a home and saving money. I want to have about $80k down which is going to take another couple years to reach. I just hate having to put every bit of savings towards a house and not having anything left.

 

[Gibson486]

condo in the boston area? prepared to be raped! Even in non city areas, you need so much down and proof that you can lift yourself if you become unemployed. I'd imagine in boston you would need 25% down just to be taken seriously.

It really sucks. I no longer want to rent b/c rent is becoming so high, but i do not have the money to put a down payment down.

 

[mrrman]

I am glad that I got in the real estate market long ago....

 

[tontod]

Originally posted by: Gibson486
condo in the boston area? prepared to be raped! Even in non city areas, you need so much down and proof that you can lift yourself if you become unemployed. I'd imagine in boston you would need 25% down just to be taken seriously.

It really sucks. I no longer want to rent b/c rent is becoming so high, but i do not have the money to put a down payment down.

Yeah, well, the Boston market hasnt fared as badly as a lot of other major metropolitan areas, so I dont understand the high amount of down payment, esp. for a 1st time buyer.