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Old 01-26-2013, 11:08 AM
 
28,115 posts, read 63,927,343 times
Reputation: 23269

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This is why borrowing is so stressful... you never know where you really are in the process.

My brother's best man lost the home of their dreams because the Lender required 72 hour verification of employment before funding... he works for the school district and the lender called during Christmas recess and there was no one to verify his continued employment.

This underwriter must not have been very intelligent because the application clearly listed occupation as teacher and employer as the school district. Problem is only going to get worse as those making the decisions may be hundreds or a thousand miles away.

I had my own lender run in last month... seems absolutely nothing happens between Christmas and New Years... except my great rate lock expired

Three days after the lock expired, lender calls and says we are all set... just need my acknowledgment the rate has increased and my no point loan now carries 1 point or $3,000.

Told them they could keep their loan.
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Old 01-26-2013, 11:13 AM
 
5,046 posts, read 9,692,708 times
Reputation: 4182
Quote:
Originally Posted by Sunnypalm39 View Post
Can anyone explain how the loan amount went from $80,000 all the way down to $60,000 when nothing on my end has changed? I know the lender said the underwriter wouldn't and couldn't use any of my extras, just my hourly pay, but the new lender said i would only be approved for $60,000 with all my extras included not without. Even without all my extras, the amount shouldnt have dropped a whopping $20,000. It just doesn't make sense, right?
Basically, because you seem to have gotten an honorable, ethical, moral lender second time around.

The old way among disreputable lenders...and it seems old is only a few months ago...was called jokingly the mirror test. Put a mirror under the nostrils and if the mirror fogs up the guy gets qualified.

Lenders have gotten much much stricter in recent years but still some lenders lag behind in that. It seems Flagstaff may have just begun to get caught up.

I have been surprised to hear of the people who were so proud there home was worth an amount I knew was not accurate. These were semi-professional people, pretty smart, hardworking, paid their bills. This is the kind of person an unethical outfit is interested in. In fact, the company will often be the pursuer. And the innocent homeowner/prospective homeowner is so proud of how much their home is worth now or how much they can afford.
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Old 01-26-2013, 09:34 PM
 
Location: northern va
1,736 posts, read 2,910,781 times
Reputation: 1688
Quote:
Originally Posted by Ultrarunner View Post
This is why borrowing is so stressful... you never know where you really are in the process.

My brother's best man lost the home of their dreams because the Lender required 72 hour verification of employment before funding... he works for the school district and the lender called during Christmas recess and there was no one to verify his continued employment.

This underwriter must not have been very intelligent because the application clearly listed occupation as teacher and employer as the school district. Problem is only going to get worse as those making the decisions may be hundreds or a thousand miles away.

I had my own lender run in last month... seems absolutely nothing happens between Christmas and New Years... except my great rate lock expired

Three days after the lock expired, lender calls and says we are all set... just need my acknowledgment the rate has increased and my no point loan now carries 1 point or $3,000.

Told them they could keep their loan.
your brother's best man's agent could not convince the sellers/sellers agent to extend settlement a couple more days, especially after coming through (I assume) 30+ days of inspections and underwriting?

or was this a short sale that could not get an extension on the approval letter?
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Old 01-26-2013, 10:12 PM
 
Location: southwest TN
8,568 posts, read 18,187,584 times
Reputation: 16708
Quote:
Originally Posted by bluegrey View Post
"pre-qualified" and "pre-approved" seem to be two entirely different things nowadays.

Oh yeah, this is a new thing. The difference being similar to that between holdover tenant (lease expired) and squatter. Just came about last week, in fact. Where have you been? Yes, they are different.

OP, it sounds as though you were not given proper advice/information at any step in your house-hunting process. I with you good luck with whatever you decide to do. Stick around and read on this forum while you save up enough for the kind of house you want. There are some very helpful and informative folks here willing to share their knowledge.
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Old 01-26-2013, 10:45 PM
 
13,176 posts, read 21,238,649 times
Reputation: 21579
Quote:
Originally Posted by Sunnypalm39 View Post
Can anyone explain how the loan amount went from $80,000 all the way down to $60,000 when nothing on my end has changed? I know the lender said the underwriter wouldn't and couldn't use any of my extras, just my hourly pay, but the new lender said i would only be approved for $60,000 with all my extras included not without. Even without all my extras, the amount shouldnt have dropped a whopping $20,000. It just doesn't make sense, right?
There is a possible logical and rational explanation for this. It sounds like your 'pre-approval' was more along the lines of a pre-qualification wrapped up to appear like a traditional pre approval. As such, the pre-qualification called a pre-approval amount was based on income information of your total compensation as if wages. During the actual approval process and verification, they used the hourly wages as the base and the overtime and incentives as secondary. That could have resulted in the total mortgage amount being lower.

Imagine there are two of you applying for a mortgage. You make $50,000 in direct wages. The other person also makes $50,000 but only $30,000 is direct wages and the other $20,000 is from overtime and incentives. Since overtime and incentives are not fixed wages and are subject to fluctuations or even ending, they are looked at and treated differently than straight wages. Remember that your employer did raise the issue of it not being guaranteed or continuous. The second lender was most likely specifically provided greater details because it became an issue with the first lender.

That is my thinking as to why you received two different amounts based on the same information.
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Old 01-26-2013, 11:26 PM
 
28,115 posts, read 63,927,343 times
Reputation: 23269
Quote:
Originally Posted by kww View Post
your brother's best man's agent could not convince the sellers/sellers agent to extend settlement a couple more days, especially after coming through (I assume) 30+ days of inspections and underwriting?

or was this a short sale that could not get an extension on the approval letter?
It was a short sale and he couldn't get an extension while to cover the time lost and for the loan to be redrawn and there was an issue of a rate change...

Really incredible when you think how fragile the process is...
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Old 01-26-2013, 11:40 PM
 
28,115 posts, read 63,927,343 times
Reputation: 23269
I posted about a purchase several years ago that went south the week the sale was to close.

It was a 45 day escrow and everything was going well and then I get a call from the Sellers saying it was too bad things didn't work out

I had no idea what they were talking about and said I will make some calls... the title company learned my lender had rescinded approval because the underwriters didn't realize the home was on 5.19 acres???

They had all the information, appraisals, purchase contract for weeks and 4 days before closing they pull this?

I call my agent and she said she was just going to call me and my deposit was going to be returned???

I start to raise you know what as to why the seller is the one I had to learn all this from and why on earth would they think I'm not buying the property and then I was told it would be impossible to have another lender step in at the last moment.

I calmly told my agent I will wire the funds in 48 hours, I'm buying it and it better close as scheduled and it did!

Lots of paragraphs starting with "I" above... the point is the process failed and if it wasn't for me... the deal would have died.

This topic dealing with lenders has touched a nerve... not saying I have not had good experiences... just saying there have been far too many bad experiences and I have excellent credit.
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Old 01-27-2013, 05:03 AM
 
Location: northern va
1,736 posts, read 2,910,781 times
Reputation: 1688
Quote:
Originally Posted by Ultrarunner View Post
It was a short sale and he couldn't get an extension while to cover the time lost and for the loan to be redrawn and there was an issue of a rate change...

Really incredible when you think how fragile the process is...
very much so.. I had a recent short sale transaction that needed a two day extension.. came right down to the wire, almost didnt get it..
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Old 01-27-2013, 10:40 AM
 
Location: A blue island in the Piedmont
34,258 posts, read 83,535,654 times
Reputation: 43917
Quote:
Originally Posted by Ultrarunner View Post
This is why borrowing is so stressful... you never know where you really are in the process.
The secret of life is honesty and fair dealing. If you can fake that, you've got it made.” -Marx
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Old 01-27-2013, 01:14 PM
 
Location: Pinellas Park Florida
210 posts, read 578,899 times
Reputation: 157
Having bought and sold many properties and working in the industry, it still surprises me when the oldest sale tactic in the book still works. The ole bait and switch. It's clear to me the salesman was after a larger down payment than the Op could afford. Many buyers who fall in love with a property and just have to have it will invariably come up with the money, usually by borrowing from parents, friends or whoever. Most salesman know there are shoeboxes buried somewhere.

Another reason e-mails can be your friend or foe. Go to court and lets us know if you win.
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