ha98ed14
09-05-2013, 03:26 PM
Ok, actually it feels like he11, but I didn't think I should put that in the title. Looking for some perspective, BTDT, commiseration, advice...
We are trying to refinance our house. In July, we went with Broker A, who was recommended by the realtor we used to buy the house in January 2010. (Realtor is friendly acquaintance we knew before we went house hunting). Realtor told Broker A that he estimated our house would sell for $4XX K. (We live in SoCal, so and this is a *very* average house 3 BR, 2BA 1400 sq.ft.) Given what we owe on the mortgage, Realtor's estimate would get us to the 80/20 LTV we needed to get a regular mortgage. Credit is good, etc. The only quirk in our plan is that I am not on the mortgage because I do not have a steady income because I freelance. DH is the one with the regular paycheck and the better credit rating, so we just apply under his name. That's how we did it when we bought it in 2010.
Enter Appraiser A doing appraisal for Broker A. He comes and does a very cursory look at the house. Takes maybe 8 pictures, but it's a small house. Well, Appraisal A came back $30K lower than Realtor had told Broker A, which means we needed to make up that difference with $ at closing-bring money to the table. We weighed our options and decided it was worth it because the rate was so good. Closing costs were going to be $2,200. Then the lender's underwriter decides that he does not like the random deposits to our joint account from my freelance work. It's by check, not direct deposit, and very inconsistent because my work is inconsistent. Again, part of why we apply for the mortgage under just DH. We don't need my "income" to qualify because our debt to income ratio is fine- no cc debt, no car loan, etc. We tried to document the deposits 9 ways from Sunday with copies of the checks, but the bank was never satisfied because the money we were bringing to closing to make up the difference in the appraisal to get to 80/20 LTV came from my work (separate "business") account. Eventually the rate lock expired and the deal fell apart.
So then we apply with our credit union, which we have a great relationship with. (We've taken out short term loans and paid them back; we used them to finance our car and then paid it off. Never overdrawn an acct.) By the time we apply with the credit union, rates are 0.45% higher. For this loan, we use Appraisal A as the estimated value. (After the first deal fell apart, we paid down the mortgage enough to get to 80/20 LTV using Appraiser A's value.) To get the interest rate back down to what it was with Broker A, it is going to cost us 1.25 points, which brings our costs at closing up to $6000+. We say fine because we know the credit union will lend to us. Credit Union orders the appraisal. He came today-- House was neat and tidy and it's in good condition- same as it was for Appraiser A. Well, this appraiser scrutinized EVERYTHING. He asked me a million questions. Appraiser A asked me 3. He took pictures of my smoke detectors! I'm completely paranoid that because he was so detailed, it means the house is going to come in even lower! If I have to pay $6K+ in closing costs, I don't have any more money to bring to closing to get to 80/20 LTV if the value comes back lower than Appraisal A.
So I've pursued a loan with Broker B. Again, we used Appraisal A as the estimated value of the house. This time, the rate is back down to where it was with Broker A, no points, and no closing costs. It's too good to be true perhaps, but this is a reputable broker, so we are going for it. Broker B's appraisal was just ordered today, so it will probably happen next week. I'm so nervous, I feel nauseous. By the time this is all over, I will have paid for 3 appraisals. What if they come back all over the map? If they are not consistent with one another? Ugh... I am crossing my fingers that Broker B comes through because otherwise I am out a whole lot of $...
Maybe this should have gone in the BP.
We are trying to refinance our house. In July, we went with Broker A, who was recommended by the realtor we used to buy the house in January 2010. (Realtor is friendly acquaintance we knew before we went house hunting). Realtor told Broker A that he estimated our house would sell for $4XX K. (We live in SoCal, so and this is a *very* average house 3 BR, 2BA 1400 sq.ft.) Given what we owe on the mortgage, Realtor's estimate would get us to the 80/20 LTV we needed to get a regular mortgage. Credit is good, etc. The only quirk in our plan is that I am not on the mortgage because I do not have a steady income because I freelance. DH is the one with the regular paycheck and the better credit rating, so we just apply under his name. That's how we did it when we bought it in 2010.
Enter Appraiser A doing appraisal for Broker A. He comes and does a very cursory look at the house. Takes maybe 8 pictures, but it's a small house. Well, Appraisal A came back $30K lower than Realtor had told Broker A, which means we needed to make up that difference with $ at closing-bring money to the table. We weighed our options and decided it was worth it because the rate was so good. Closing costs were going to be $2,200. Then the lender's underwriter decides that he does not like the random deposits to our joint account from my freelance work. It's by check, not direct deposit, and very inconsistent because my work is inconsistent. Again, part of why we apply for the mortgage under just DH. We don't need my "income" to qualify because our debt to income ratio is fine- no cc debt, no car loan, etc. We tried to document the deposits 9 ways from Sunday with copies of the checks, but the bank was never satisfied because the money we were bringing to closing to make up the difference in the appraisal to get to 80/20 LTV came from my work (separate "business") account. Eventually the rate lock expired and the deal fell apart.
So then we apply with our credit union, which we have a great relationship with. (We've taken out short term loans and paid them back; we used them to finance our car and then paid it off. Never overdrawn an acct.) By the time we apply with the credit union, rates are 0.45% higher. For this loan, we use Appraisal A as the estimated value. (After the first deal fell apart, we paid down the mortgage enough to get to 80/20 LTV using Appraiser A's value.) To get the interest rate back down to what it was with Broker A, it is going to cost us 1.25 points, which brings our costs at closing up to $6000+. We say fine because we know the credit union will lend to us. Credit Union orders the appraisal. He came today-- House was neat and tidy and it's in good condition- same as it was for Appraiser A. Well, this appraiser scrutinized EVERYTHING. He asked me a million questions. Appraiser A asked me 3. He took pictures of my smoke detectors! I'm completely paranoid that because he was so detailed, it means the house is going to come in even lower! If I have to pay $6K+ in closing costs, I don't have any more money to bring to closing to get to 80/20 LTV if the value comes back lower than Appraisal A.
So I've pursued a loan with Broker B. Again, we used Appraisal A as the estimated value of the house. This time, the rate is back down to where it was with Broker A, no points, and no closing costs. It's too good to be true perhaps, but this is a reputable broker, so we are going for it. Broker B's appraisal was just ordered today, so it will probably happen next week. I'm so nervous, I feel nauseous. By the time this is all over, I will have paid for 3 appraisals. What if they come back all over the map? If they are not consistent with one another? Ugh... I am crossing my fingers that Broker B comes through because otherwise I am out a whole lot of $...
Maybe this should have gone in the BP.