Mortgage approval...

[AndreaDM]

We are actually signing on our refi tonight, finally! I agree with a pp that it's just been a pain with all the documentation they wanted this time around. I'll be so glad to get our payments lower each month though!

[ccgirl]

Originally Posted by kiki02

is anyone (with good credit) having a hard time getting a mortgage now or ?

I keep hearing this, but might be making the plunge soon... wondering how good or bad it is.

It would depend on what you consider "good" credit. Sometimes what a consumer considers good credit is not necessarily what the lender considers good credit. Good credit is more than just your score.

Originally Posted by sookie

We have a great credit rating, but I felt like we were literally documented TO DEATH over every little thing this time around. When we bought our first home at the beginning of the "bubble", it was a literal snap compared to our experience this time.

We have like triple the income, a much longer credit history (score was great back then too), and we aren't first time home owners. We were going through the process this time around, and I was really getting irritated with the underwriters.... this was an example of one of the requests I had.

"Can we get a copy of that check where you paid your off $30 dollar (insert department store here) account in April?" Me: "Yes. But you can see that we pay off that account in full monthly and have since it was opened in - oh, the early 2000's, right?" Underwriter: "Oh, yes, I guess that is true...."

It went on, and on, and on. There just seemed to be a huge disconnect what they should be able to see on our application, the documents they gave us, and our credit reports / scores (I got copies of them - they were perfect!). They seemed to just want to document out the wazoo before they went to closing. It wasn't the pre-approval or approval that was the pain - it was getting the ducks in a row before going to actual close.

We got a great rate, but it was a huge pain. They never said it, but I think that they did all of that because we had a second house that we were renting out. We were unable to sell it previously, so we were renting it. But we had great incomes, the house was rented and it had been occupied for over a year, and we were able to document that income. So it shouldn't have mattered. And we were buying the second home for way under what we were approved for - so I was still surprised at all of that. Thankfully, we sold that first house just a few months after moving into our new home! It all worked out in the end.

Bolding mine. It mattered because the length of rental history. When you own two homes, you are responsible for both mortgages. Should the renter default you are still responsible for paying the mortgage.

Originally Posted by kiki02

they never said it, but why would they care if you owned a second home. did you have a mortgage on it? it's income... !

banks are getting really annoying!!!!

See above. It's not annoying...they are starting to look out for themselves. Look at all the people that walked away from their homes because they couldn't afford it any more and/or were upside down. If you are getting a mortgage, the bank owns the house not you so they want to make sure their interests are protected.

[surfgirl]

We want to re-fi and the mortgage broker I've worked with in the past isn't taking re-fi right now because they are overworked.

We have: great credit scores, low debt-income ratio, solid work history, solid assets, and no problems with the appraisal (we are actually liquidating assets and paying down the mortgage). frustrating that we cannot take advantage of the rates right now, but it is time to make some more phone calls...

[ssawka]

Originally Posted by surfgirl

We want to re-fi and the mortgage broker I've worked with in the past isn't taking re-fi right now because they are overworked.

We have: great credit scores, low debt-income ratio, solid work history, solid assets, and no problems with the appraisal (we are actually liquidating assets and paying down the mortgage). frustrating that we cannot take advantage of the rates right now, but it is time to make some more phone calls...

Then it is time to consider a new broker or try to get a mortgage yourself. Not having time for a customer is no excuse no matter how good your relationship with him is. Do you belong to a credit union? I'd start there first.

[jrw118]

Originally Posted by surfgirl

We want to re-fi and the mortgage broker I've worked with in the past isn't taking re-fi right now because they are overworked.

We have: great credit scores, low debt-income ratio, solid work history, solid assets, and no problems with the appraisal (we are actually liquidating assets and paying down the mortgage). frustrating that we cannot take advantage of the rates right now, but it is time to make some more phone calls...

Why are you even using a broker. Contact your current lender and see if they will help. It is not hard to do it yourself just time consuming at times.

[sookie]

Originally Posted by ccgirl

Bolding mine. It mattered because the length of rental history. When you own two homes, you are responsible for both mortgages. Should the renter default you are still responsible for paying the mortgage.

Yup! I think that was it. I think that was it. That was why we went lower than what we were approved for. But I that it still made them really nervous, and that was why they made us document to the hilt.

Originally Posted by kiki02

they never said it, but why would they care if you owned a second home. did you have a mortgage on it? it's income... !
banks are getting really annoying!!!!

I think it was because they were worried it would stretch us too thin if our renter had issues or walked out. I think that even if we had had a renter in there for TWO years, ten years, or more - I think it still would have been an issue - even though they didn't come out and say it. Maybe they didn't come out and give us issues because I gave them all our documents upfront when I applied, I don't know. But I do know that I am so glad we were able to sell that property! I will never, ever again buy another house while owning another, unless I absolutely have to! OP, I hope it works out!

[ccgirl]

Originally Posted by jrw118

Why are you even using a broker. Contact your current lender and see if they will help. It is not hard to do it yourself just time consuming at times.

Agreed. I refinanced through my current lender and did not need an appraisal. It took 2 weeks from the start of the process to the closing. We went through using the HARP. This is different than the HAMP; the hamp is a modification where the HARP is a refinance.

Please know that even using a mortgage broker does not always get you the lowest rate. Sometimes the rate is even higher than you would get yourself. It is important to shop around.

[2disneyboys]

we just refinanced and it really was not a problem at all. We dont' have the best credit score but it's def above average. We have solid work history (Both of us at least 15 years @ Current employer) and low debt to income ratio (no auto loans, student debt or credit card balances - only debt we owe is mortage on our home). They barely looked at or asked for much documenation relating to our income.. the biggest concern was the appraisal value until the lender realised that we were NOT refinancing to cash out. Our new "mortgage" is a 15 year mortgage for 34% of the appraised value of our home so obviously a lot of equity. We paid closing costs out of pocket... this was truly a refi for a lower rate and nothing else. The lendor actually acted like we were crazy to be going through all of this and not taking out any cash...We are paying our old mortgage payment so we can have this paid off in 8 years according to our "plan"

But it was a very simple process... they gave us a list of what was needed, we gave it to them, they contacted us 2 days later & said your approved for xyz rate, they ordered appraisal etc, and a week later we closed - a much easier process than when we first bought our home.

[ssawka]

Originally Posted by 2disneyboys

Our new "mortgage" is a 15 year mortgage for 34% of the appraised value of our home so obviously a lot of equity. We paid closing costs out of pocket... this was truly a refi for a lower rate and nothing else. The lendor actually acted like we were crazy to be going through all of this and not taking out any cash...We are paying our old mortgage payment so we can have this paid off in 8 years according to our "plan"

This is us exactly! We refinanced simply because with the new rate we were able to knock 2 years off the mortgage. We refinanced about 3 years ago into a 20 year mortgage. We are now at 15 years with roughly the same payment. We also have a plan to get it paid off in about 8 years.