Mortgage Nightmares - What's your story?

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Mortgage Nightmares - What's your story? - 6/17/2014 7:47:25 PM

cloudboy

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Joined: 12/14/2005
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If you want to enter a field of BAD CUSTOMER SERVICE and nit-picky over regulation -- try to buy a house and get a loan.

I'm in this hell now. It took me a full day to accumulate the list of documents to go with the loan:

(1) Two years tax returns and W2s

(2) Two months statements all bank accounts

(3) All insurance premiums on other properties.

Blah, blah, blah.

All this information just seems to disappear into a sink hole of red tape. The closer you get to your settlement date, the less information you're given about qualifying for the loan.

What has been your experience in applying for a mortgage to purchase a house? Did it go smoothly or make you want to explode in anger?

One problem I see with the process is that loan scrutiny does not seem to be tiered. If I was in charge -- anyone with a 20% down payment, high credit rating, and the proper debt to equity ratios --- would be fast processed.

My soapbox observation is that just the simple requirement of a 20% downpayment (one simple rule) would have averted the Mortgage Crisis altogether.

< Message edited by cloudboy -- 6/17/2014 7:48:39 PM >

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RE: Mortgage Nightmares - What's your story? - 6/20/2014 7:07:32 AM

MrRodgers

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Well, I've seen a one year tax return requirement.

Two months bank statements so lenders know that the down-payment is not a loan and usually seek a cash balance of at least two payments in the bank. If the down-payment is a gift, lenders will require a letter from the giver.

Never seen a request for insurance info. on any other properties. (mortgages) That was even in the rare instance my buyer had any.

I've seen what's described in the industry as being pre-qualified meaning that the income is sufficient and then approval is only awaiting credit assessment. Some loans are delayed for a clean title search but don't usually take that long.

On the other subject:
A requirement for 20% down-payment would never have provided the mass production needed to satisfy the greed in lenders in being able to write shit paper mortgages to then sell to wall street who were even more greedy once their MBS got a AAA rating.

Surely you understand that the whole idea was to write mortgages that didn't need to be worth any more tha the paper used.

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RE: Mortgage Nightmares - What's your story? - 6/20/2014 8:40:07 AM

skibum

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My wife and I are in the process as well, and it's a complete mess. We have the credit scores (both of us over 750), no late payments ever, enough in the bank to buy the house outright, paperwork to back it up, and our incomes are high enough to qualify on our own. 3 banks so far have said no. It doesn't make sense, and we are at the point where we are thinking about just buying for cash.

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RE: Mortgage Nightmares - What's your story? - 6/20/2014 4:40:08 PM

MrRodgers

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quote:

ORIGINAL: skibum

My wife and I are in the process as well, and it's a complete mess. We have the credit scores (both of us over 750), no late payments ever, enough in the bank to buy the house outright, paperwork to back it up, and our incomes are high enough to qualify on our own. 3 banks so far have said no. It doesn't make sense, and we are at the point where we are thinking about just buying for cash.

There must be something missing here. It's either (LTV) loan to appraised value ratio or job status (work history) or something. Do not pay all cash as with anything like 20-30% down it should be a virtual slam dunk under FHA. Even conventional...I've seen too many offers out there.

Under FHA, (or VA) they have to have a legal reason for turning you down. Your cash should be in the market.

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