Mortgage approval...

[sookie]

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.

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]

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]

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.