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Subject: Applying for a mortgage and buying a house may kill me... rss

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steven riola

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So the wife and I applied for pre-approval yesterday and started looking at houses.

I had no idea the stress and anxiety this entire process would create. It blows my mind that I can afford $1,200 a month in rent and all of my bills. But when it comes to a mortgage it's going to take them a while to see if I can afford a monthly mortgage payment. That seems likely to be less that what I'm currently paying.

ARRRGGHHHHHHHH!!!!

It doesn't help that I'm super picky about the house that we buy as well. Must have office, must have game room, must have basement and a decent yard.

And yearly taxes on property are absolutely unacceptable. They're as much if not more than my mortgage payment would be.

Sigh...
Hopefully in a few months this will all be over.
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Andrew Brannan
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thearkhammonk wrote:
It blows my mind that I can afford $1,200 a month in rent and all of my bills. But when it comes to a mortgage it's going to take them a while to see if I can afford a monthly mortgage payment. That seems likely to be less that what I'm currently paying.



Well, to be fair, if you skip out on rent, it's the landlord's problem, not the bank's, plus the landlord can slap a little paint on and rent ot the next guy in a few weeks. If you default on your mortgage, then the bank has to find some way to come out ahead on your house, and that involves getting into a lot of businesses that the bank doesn't want to get into (repair/reno, Listing, etc).

It's a hassle, definitely, but once you've gotten into one house, the process for future houses becomes much, much easier.
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steven riola

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abrannan wrote:
thearkhammonk wrote:
It blows my mind that I can afford $1,200 a month in rent and all of my bills. But when it comes to a mortgage it's going to take them a while to see if I can afford a monthly mortgage payment. That seems likely to be less that what I'm currently paying.



Well, to be fair, if you skip out on rent, it's the landlord's problem, not the bank's, plus the landlord can slap a little paint on and rent ot the next guy in a few weeks. If you default on your mortgage, then the bank has to find some way to come out ahead on your house, and that involves getting into a lot of businesses that the bank doesn't want to get into (repair/reno, Listing, etc).

It's a hassle, definitely, but once you've gotten into one house, the process for future houses becomes much, much easier.


YOU MEAN I'LL HAVE TO DO THIS AGAIN?!?!?!?!?!?!gulp
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Andrew Brannan
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thearkhammonk wrote:


YOU MEAN I'LL HAVE TO DO THIS AGAIN?!?!?!?!?!?!gulp


Only if you'll ever want more house, or a house in a different location, than you get this time. But seriously, the pre-approval process for a second house is much, much easier, since they have a mortgage history to pull from.
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M C
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One suggestion, keep all of your bank statements, and any and all documentation related to deposits in your account. I had to explain every deposit into my account for the three months prior for final mortgage approval. Routine paychecks are easy, bonuses, expense reimbursement, and a refund of money that had been mistakenly autodrawn from my account was not fun.

Its annoying, but you'll get through and having a house is great.
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steven riola

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Thanks!

So that large random deposit will probably be called into question? Oh yeah! That'll be easy to explain. Oh this was a gift from family...

SIGH

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I remember back in '94 when I was signing the paperwork for my house in Tulsa, as I was putting my signature in these places and my initials in those places, the lady from the mortgage company gave a little laugh and said something like: "I'll be you've never had to sign so many papers at once before this." I stopped for a moment and looked at her and said "I used to carry a Department of Defense security clearance for working on the software for cruise missiles. After *that* background investigation and all the papers I signed then, this is nothing." In a little voice she said "Oh. I guess not."
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thearkhammonk wrote:
Thanks!

So that large random deposit will probably be called into question? Oh yeah! That'll be easy to explain. Oh this was a gift from family...

SIGH



They definitely won't like that, especially if you're relying on it for your downpayment.

Getting a mortgage is nearly impossible these days (or at least it was 3 years ago when I did it). I transferred money from an investment account into my bank so it would be ready to go for the down payment. I showed the lender that I had the money in the investment account so they would know it really was mine and I wasn't borrowing from someone else. But that wasn't good enough. I had to actually give them a statement proving that I had liquidated the investment account and the balance was now zero.

And just how do you think you're going to get a home without property taxes? Are there states that actually don't have property taxes? My taxes are more than 50% of my total monthly payment.
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claymore_57 wrote:
I remember back in '94 when I was signing the paperwork for my house in Tulsa, as I was putting my signature in these places and my initials in those places, the lady from the mortgage company gave a little laugh and said something like: "I'll be you've never had to sign so many papers at once before this." I stopped for a moment and looked at her and said "I used to carry a Department of Defense security clearance for working on the software for cruise missiles. After *that* background investigation and all the papers I signed then, this is nothing." In a little voice she said "Oh. I guess not."


I loved how the process was routine for everyone in the room @ closing except me. I am one of those weird people who actually wants to read and understand everything I put my signature on, and I could see everyone else getting visibly ticked off that I was "wasting" their time.

I complained at one point that the paperwork was wrong - one form had listed the wrong county for the house I was buying. By the end of the process, I just gave up and signed whatever they shoved in front of me.

Then, they told me the selling bank (it was a foreclosure) hadn't finished their end of the paperwork, so technically I could not have possession of my new house. On the way out, my Realtor (tm) "accidentally" showed me the code to access the front door. Three years later, no one has ever given me "official" permission to be here. LOL. And no one could tell me how to get the key-holder lock off the front doorknob so I had to replace the doorknob to get rid of it (but I was going to change all the locks anyway so it wasn't much more work to change the hardware.)
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steven riola

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cool username wrote:
thearkhammonk wrote:
Thanks!

So that large random deposit will probably be called into question? Oh yeah! That'll be easy to explain. Oh this was a gift from family...

SIGH



They definitely won't like that, especially if you're relying on it for your downpayment.

Getting a mortgage is nearly impossible these days (or at least it was 3 years ago when I did it). I transferred money from an investment account into my bank so it would be ready to go for the down payment. I showed the lender that I had the money in the investment account so they would know it really was mine and I wasn't borrowing from someone else. But that wasn't good enough. I had to actually give them a statement proving that I had liquidated the investment account and the balance was now zero.

And just how do you think you're going to get a home without property taxes? Are there states that actually don't have property taxes? My taxes are more than 50% of my total monthly payment.


I didn't think I was going to get a home without property taxes, I was just saying that they're entirely too high.

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steven riola

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cool username wrote:
thearkhammonk wrote:
Thanks!

So that large random deposit will probably be called into question? Oh yeah! That'll be easy to explain. Oh this was a gift from family...

SIGH



They definitely won't like that, especially if you're relying on it for your downpayment.

Getting a mortgage is nearly impossible these days (or at least it was 3 years ago when I did it). I transferred money from an investment account into my bank so it would be ready to go for the down payment. I showed the lender that I had the money in the investment account so they would know it really was mine and I wasn't borrowing from someone else. But that wasn't good enough. I had to actually give them a statement proving that I had liquidated the investment account and the balance was now zero.

And just how do you think you're going to get a home without property taxes? Are there states that actually don't have property taxes? My taxes are more than 50% of my total monthly payment.


Yes, it's my down payment. It was a gift from my parents. We haven't deposited it yet. Maybe I should wait to deposit it a while longer.

I guess I just wait it out and see how things go.

Thanks guys.
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thearkhammonk wrote:
cool username wrote:
thearkhammonk wrote:
Thanks!

So that large random deposit will probably be called into question? Oh yeah! That'll be easy to explain. Oh this was a gift from family...

SIGH



They definitely won't like that, especially if you're relying on it for your downpayment.

Getting a mortgage is nearly impossible these days (or at least it was 3 years ago when I did it). I transferred money from an investment account into my bank so it would be ready to go for the down payment. I showed the lender that I had the money in the investment account so they would know it really was mine and I wasn't borrowing from someone else. But that wasn't good enough. I had to actually give them a statement proving that I had liquidated the investment account and the balance was now zero.

And just how do you think you're going to get a home without property taxes? Are there states that actually don't have property taxes? My taxes are more than 50% of my total monthly payment.


Yes, it's my down payment. It was a gift from my parents. We haven't deposited it yet. Maybe I should wait to deposit it a while longer.

I guess I just wait it out and see how things go.

Thanks guys.


Deposit it ASAP. Maybe by the time your purchase rolls around it will have been in your account long enough that you won't be questioned about it. Otherwise you'll have to have paperwork from your parents stating that it is indeed a gift and they have no expectation of repayment.
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Mark Schlatter
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cool username wrote:


I loved how the process was routine for everyone in the room @ closing except me. I am one of those weird people who actually wants to read and understand everything I put my signature on, and I could see everyone else getting visibly ticked off that I was "wasting" their time.



My wife is a read-everything person. On both our original mortgage and our refinancing, we just told the closing company we would be there 1-2 hours earlier. We showed up and read it all. The guy who handled the refinancing loved it --- it was one of the first times in years he didn't have to explain what every piece of paper meant.
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David Dixon
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thearkhammonk wrote:
cool username wrote:
thearkhammonk wrote:
Thanks!

So that large random deposit will probably be called into question? Oh yeah! That'll be easy to explain. Oh this was a gift from family...

SIGH



They definitely won't like that, especially if you're relying on it for your downpayment.

Getting a mortgage is nearly impossible these days (or at least it was 3 years ago when I did it). I transferred money from an investment account into my bank so it would be ready to go for the down payment. I showed the lender that I had the money in the investment account so they would know it really was mine and I wasn't borrowing from someone else. But that wasn't good enough. I had to actually give them a statement proving that I had liquidated the investment account and the balance was now zero.

And just how do you think you're going to get a home without property taxes? Are there states that actually don't have property taxes? My taxes are more than 50% of my total monthly payment.


Yes, it's my down payment. It was a gift from my parents. We haven't deposited it yet. Maybe I should wait to deposit it a while longer.

I guess I just wait it out and see how things go.

Thanks guys.


You definitely might want to wait. When my wife and I sold our house, the couple who was buying it got a large gift of the same nature from his parents.

The bank was not as impressed with this signal of generosity and helpfulness from his family as you might have thought. While they went round and round with it, it delayed closing by 45 days.

I assure you, the stress of buying that house was a lot less than was the stress over selling it during that 45 days of post-closure closure.

Diis
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Diis wrote:
I assure you, the stress of buying that house was a lot less than was the stress over selling it during that 45 days of post-closure closure.
Yeah, I'll take buying a house over selling one any day of the week. I was fortunate enough to sell a house just before the world went to shit in '08, and it actually took a scant 2 weeks to get the house under agreement. But then the sellers decided to go through the place with a fine-toothed comb and demand I repair/replace about a dozen things that were never in the bargain before we actually closed. Add to that the fact that they were slow/sloppy with their bank paperwork and it was almost 5 months before we actually closed on the damn thing. Every time my realtor called I had to grind my teeth and ask, "What do these ass-hats want out of me THIS week?!"
angry angry angry

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Scott Russell
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At least back in the 80's you could sign a form that the gift was actually a gift and that covered the deposit.

You think the loan application is fun, wait until you close on a house!
Dave Barry put it best. You go into a room and write checks and sign things until you are out of checks, then they let you go. On one of our houses, my wife couldn't make it to closing and I had power of attorney, but that meant I had to sign everything twice!

Edit:
Oh, and once we had to put our last five addresses. That involved at least one dorm for which I had to look up the address for (still not sure I had the correct room).
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Laudwic wrote:
One suggestion, keep all of your bank statements, and any and all documentation related to deposits in your account. I had to explain every deposit into my account for the three months prior for final mortgage approval. Routine paychecks are easy, bonuses, expense reimbursement, and a refund of money that had been mistakenly autodrawn from my account was not fun.

Its annoying, but you'll get through and having a house is great.



Thank you companies such as Ameriquest and Countrywide! Good ole "Stated Income" screwed it all up for the honest person.

I am kind of glad I quit working in the Origination's side. There is money to be made for sure, but there is also so much corruption that you don't even know you are a part of.

thearkhammonk wrote:


Yes, it's my down payment. It was a gift from my parents. We haven't deposited it yet. Maybe I should wait to deposit it a while longer.

I guess I just wait it out and see how things go.

Thanks guys.


Usually if you just deposit the amount, you will just have to show a "gift letter" with a bank statement showing the withdrawal from their account, and most likely proof that they are your parents

Hassle, yes. Annoying, yes. But Banks are being super cautious with their loans these days because of the prior fraud in the industry. A lot of banks lost a LOT of money when they couldn't sell their loans to others, because documentation was "scarce"

The other option is to deposit it into you savings, and wait 3-6 months and don't touch the money. Then find a house When they ask for proof of down payment, simply show your previous 3 months statements and since the money will be there every month, it will be viewed as seasoned funds and shouldn't even be questioned.


Buying a house is without a doubt, a stressful moment in life, but in the end, it is worth it (or so I have heard I am yet to buy a house myself, but that is because I went through a 'live in 4 different states' phase over the past few years. Owning a house would stick me in one place for too long.)


Anywho, good luck with the process! And if ya want, feel free to gm me and ask any questions you may have.

I'm not making any money from ya, so I have no reason to lie
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thearkhammonk wrote:

I didn't think I was going to get a home without property taxes, I was just saying that they're entirely too high.


Depends on how your state generates revenue, but I never really mind paying property taxes. They pay for schools, parks and our very good public library system - all of which I use and enjoy.
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