View Full Version : Anyone apply for a mortgage lately?

Mitchell Andrus
06-28-2009, 11:01 AM
I know the process has gotten tougher... Any horror stories/success stories?

I talked to a fellow who spent 3 months getting a re-fi on a second home. Said the paperwork nearly killed him.

LOML and I are looking for a second home/retirement home in NC. Financing a second is supposedly tougher (despite the fact we have zero debt) because it's easier to walk away from a non-principal residence.

Frank Trinkle
06-28-2009, 11:05 AM
Refinanced our primary home in March and the process was painless... for us anyway. Saved nearly $4000/yr in payments.

Of course, we have USAA which is ALWAYS 1st rate, easy, and totally committed to customer service and care.

Ted Calver
06-28-2009, 11:29 AM
Just refied our home with the same mortgage company that now holds our mortgage. They were swamped with applications so it took well over 3 months. They honored the rate quoted at the start of the process, even though the rates have gone up nearly a point since. Saves us nearly 4k a year.

Pat Germain
06-28-2009, 1:13 PM
Some of my coworkers have recently refinanced. They report the process to be painless, but those were VA loans.

A friend of mine recently got a construction loan. He tried to get it last year and failed. The appraiser valued his home at a price much lower than the cost to build it. :confused: This year, things came out much better.

The drift I get is as long as you have good credit and are applying for a traditional mortgage, you're fine. Folks looking for creative financing are going to be disappointed. Dollars to doughnuts, you'll have no problem getting a mortgage for your second home, Mitchell.

Ken Fitzgerald
06-28-2009, 1:18 PM
If you have a good credit rating it really should not be any worse than before except if there happens to be an unusually large volume of people applying at the time you are.

My understanding is they have just tightened the requirements not the paperwork.

Cary Falk
06-28-2009, 3:04 PM
We are in the process of refinancing right now. It has been painless. The whole process will have taken less than 45 days.

Steve Rozmiarek
06-28-2009, 3:12 PM
Doesn't really apply to this, but willing ag real estate lenders are ridiculously scarce right now. Must be hit and miss as to what is being effected.

Frank Hagan
06-28-2009, 3:24 PM
The difference is whether its your primary residence or not. Refis and first loans are finding some money out there, but second and third houses ... not so much.

According to my BIL, who is a loan broker, you simply cannot buy a 6th home unless you pay cash. Investors can't get loans if they own five properties already, no matter how good their credit or how rich they are. As you go down the list from 6th to 5th, to 4th, etc., it gets a bit easier, but the requirements are still pretty stiff.

They may want more than 20% down for you to qualify, and the appraisal may come in less than you are paying, so it can be doubly tough. I wouldn't expect to get a loan for a second home unless your credit score is in the mid 700's. And the interest rate is likely to be higher than what you're seeing for primary homes.

Randy Cohen
06-28-2009, 3:42 PM
or you could borrow on your current residence.

Paul Ryan
06-28-2009, 6:33 PM
As long as you have good credit and 20% down/equity in your home it will be painless. Very simple. Those that have less than good credit and need some help with down payments are going to run into more problems than before. In the past many banks encouraged you to borrow money from friends or family to help cover the 20% to avoid a second mortgage or PMI. Now if you refinace or buy they are very very touchy on the amount of debt that you have even if it is with friends or family. My advice though never borrow to or borrow from friends or family.

Scott Shepherd
06-28-2009, 8:53 PM
I also believe it's a great time for first time home buyers. Apparently they give you $8,000 at closing. You can't use it for closing, but I've heard you get $8,000 at closing, for first time home buyers. Don't know if it's true or not, but I've heard it about a dozen times by realtors as well as mortgage bankers in the last few months.

Steve Rozmiarek
06-28-2009, 9:10 PM
I also believe it's a great time for first time home buyers. Apparently they give you $8,000 at closing. You can't use it for closing, but I've heard you get $8,000 at closing, for first time home buyers. Don't know if it's true or not, but I've heard it about a dozen times by realtors as well as mortgage bankers in the last few months.

Thats a tax credit, are they forwarding the credit?

Scott Shepherd
06-28-2009, 9:28 PM
I don't know, I've just heard repeatedly that they will not give it to you before closing, but they will give you the money at closing, but it cannot be used for closing. I've also heard people saying they bought a house (1st time buyer) and they actually walked out of closing with money instead of it costing them money, so who knows.

I don't pay enough attention when they are talking about it, as I'm not in the market, but I'll pay attention next time one of them is talking :)

Tom Godley
06-29-2009, 5:13 PM
The lenders are requiring documentation for everything - No more we believe you.

My last mortgage was three years ago and I provided almost no documentation to purchase the most expensive house I have ever owned - and it took about four days to get it all done.

If you are dealing with a local bank that knows you - your paycheck states your income -- the house is your primary and of a known value - and the loan amount is less than 80%. Then the process can be quicker.

Wachovia/ Wells Fargo -- Told me Friday that three months is about the norm in the refinance department when all is in order.

I was surprised -- but not shocked to learn that they have basically stopped making local commercial loans.

Mike Null
07-03-2009, 9:37 AM
My daughter just closed last week. Painless process. She gets the $8,000 but I don't recall whether that's a tax credit or some other form of payment.

Rich Engelhardt
07-03-2009, 10:54 AM
Re: the $8K tax credit.
Like everything else the .gov gets involved with, the whole mess is as clear as mud.:rolleyes:

It's hard to know who to listen to. IMHO - the bank is the last one I'd be inclined to listen to.
We've taken out 5 notes in almost as many years & from three differnet lenders. None of them went smooth. They managed to screw something up with each one.
Terms, rates, fess, amounts - you name it.

Anyhow - to the OP. We just took out a note 3 weeks ago.
Went in on a Saturday & applied. Got apporved on Monday. Signed the papers on the following Saturday. had the money deposited in the account on Thursday.
That part was quick and easy.

Fooling around for a week - and counting - over yet another bank screwup has been the ugly part.

Long story short - the bank rep quoted us incorrect info. then to top it off, sent us the signed papers - complete with our signatures & account information in an unsealed/resealed with scotch tape envelope.:mad::mad:
We had to put a hold on our account and open a new one & transfer the funds.
So what did the bank do? They put a hold on the new account instead of the old one!:mad:
Goof balls,, good thing we caught it prior to making an offer on a house where they wanted proof of funds.

Mike Null
07-04-2009, 1:37 PM
Just talked to my daughter who has filed for her tax credit of $8,000. It is actually a refund of $8,000 or that amount less any taxes you may owe. It takes 8 to 14 weeks for the check to arrive after filing. Filing cannot be done electronically.