Why I hate mortgage companies

[ibified]

So anyway....we had the house deal all put together (so we thought) - had the preapproval letter from the mortgage company, had the accepted offer, had the inspection complete, etc.

Today was the day that the contract said was the final day for the mortgage offer to be finalized and the closing date given. We call the mortgage company and they tell us that we need an additional 10 grand in the bank over the 22K we have now. part of the reason for that is because the closing costs have changed from 700 or so out of pocket for us to 4200 or so out of pocket for us. Also, the interest rate went from 6.25% to 6.75 percent. Additionally, they informed us that this was an interest-only loan, instead of the 30 year fixed, as we werre initially approved for.

Nothing changed from us. We didnt lie about our income, our credit rating (which they pulled before the preapproval letter) didnt change, nothing.

What could have possibly have changed that they went crazy with the loan like that?

Now we're stuck in a position where we have to hunt for a new lender. This wont be that big an issue, because we can go through our credit union and get a decent rate. However, it's going to push our planned closing date back from the middle of December to the end of January. We don't know how the sellers are going to feel about this, so I'm looking for any advice or suggestions from anyone with experience in real estate.

Any kind of assistance would be GREATLY appreciated. Thanks all.

 

[Mr Bogus]

sounds bogus.... did you have a preapproval letter or a pre qualification? When I bought my last house, the lender bank (Wells Fargo) had to lock in my interest rate with the letter I got... man I feel for you, it is an anxious time without getting jacked around...

 

[ibified]

it's a preapproval letter. Our agent wouldnt write an offer with just a prequalification letter. oh yeah, she shes as baffled as we are. Not too happy with the company either.

 

[DR1300R]

PM Fate he's big into real estate..

 

[rc51ny]

I feel your pain and frustration. My son is buying his first house. He got pre-approved and HAD more than the required minimum down payment. The banker has now made and cancelled 4 closing dates. My son took time off of work to move & get setteled (not easy as he's a Deptuy Sheriff), and the time has come and gone. He's so frustrated (and me too) that he's ready to back out of the deal. Why do these people promise closing dates and then not deliver. I can understand once, maybe even twice---BUT 4 TIMES!!!!! If I worked like that I'd be fired (and rightfully so). In my next life---I want a job like that!

 

[Fate]

Did you just get pre approval? Did you go in and fill out paperwork and get a good faith estimate? If not, no recourse, crappy mortage co. piss me off, I deal with it all the time. Pm me if you need help, I will check with my connections to see if any are licesnsed in your state. I have a company that is fast, can hook you up with manager if you want, pretty sure they are licenced in all states.

 

[ibified]

Thanks fate, but I think we have another mortgage company that we're going to deal with. This is a recommendation of both our agent and a friend of the family. the only problem is that now the close will probably be pushed back to the end of January, and I don't know how the sellers are going to respond to that. Suggestions on how to handle that one?

 

[Fate]

I read your post again, that does not make sense. They want you to show seasoned funds in your account which I understand, out of pocket is about 4 grand more than anticipated, so why do you need so much more in your account? Normally they like to see two months payments in your account. Will house go FHA? If so I can probably get you a low interest loan with 100% financing. The Gov. has re-done FHA programs to give options in this crappy market.

 

[Fate]

Oh and pre approval letters are only good for wiping your AZZ with. If you preQualified and filled out all the forms and recieved a good faith estimate, you could hold them to there terms and Mortgage company may have to eat difference.

 

[ibified]

yeah I didnt understand that part of it either. Seasoned funds is definitely not a problem with us. the money has been sitting there, for the most part, for about 6 months. Some of it was transferred in recently out of other accounts and cd's, but the trail of the money being there is easy enough to follow, im sure. Why they want more in the account above and beyond that is beyond me, and when I asked why they wanted that, and why the offer had change so much, he kinda backpeadled on me. So i dont have any interest in dealing with that a$$bag anyway.

 

[ibified]

Update:

Our realtor spoke with the seller, as well as with the woman she recommended. Mortgage will be in place, and sellers are okay with waiting until we can get this finalized. As much as that mortgage company pissed me off, we sure do have one awesome realtor.

 

[Fate]

yeah I didnt understand that part of it either.  Seasoned funds is definitely not a problem with us.  the money has been sitting there, for the most part, for about 6 months.  Some of it was transferred in recently out of other accounts and cd's, but the trail of the money being there is easy enough to follow, im sure.  Why they want more in the account above and beyond that is beyond me, and when I asked why they wanted that, and why the offer had change so much, he kinda backpeadled on me.  So i dont have any interest in dealing with that a$$bag anyway.

I called a couple people I know that are fast to see if they can do biz in Indiana, If they can, I will pm you with there info. Be careful with mortg bankers, there is not a licensing process and most of them are azzhats. Not much experience with credit unions except for car loans and they took care of me with those.

 

[Bird Hunter]

Update:

Our realtor spoke with the seller, as well as with the woman she recommended.  Mortgage will be in place, and sellers are okay with waiting until we can get this finalized.  As much as that mortgage company pissed me off, we sure do have one awesome realtor.

Good luck and hang in there with the whole process partner... I feel for you guy's, but it will be worth it once you have your own place...

 

[ibified]

Indeed. Thanks for your help, everyone. I'll keep everyone posted - Corrina (the new mortgage lady) said she shold have a preapproval letter for us with amounts on it by tomorrow or monday, and the good faith estimate and a closing date by the middle of next week.