Buyer's Market? Not for Mortgage Seekers
Mon Mar 31, 2008 at 02:07:51 PM PDT
I'm frustrated. Really frustrated. As I have mentioned in the past DH and I are in the process of buying our first home. We initially met with a mortgage broker in February and he told us that based on DH's income and our credit score we were great candidates for 100% financing. No down payment, yippy! Because our assets are limited and coming up with a down payment was going to be struggle for us, we were psyched. After a short real estate search, we found a great affordable townhouse; we were prequalified for the mortgage, and made an offer, which the sellers accepted. Great! The mortgage broker reassured us that the mortgage would be the easy part. Ha, Ha. Yeah right. It’s be snag, after snag, after snag. DH and I are fuming.
First, due to the change in market the lenders are no longer doing 100% financing (due to the "declining market") so we had to come up with at least 5% for a down payment. Okay, this bummed us, but with some help from family we were able to cobble that together. Here is a link to an article I found about declining markets.
Paper work filled out. Check. Financial documents to support our income. Check. Well, not really. I confirmed with our mortgage rep several times if he had everything he needed and he said yes. Only to find out days before our mortgage commitment was due that they needed all this other stuff. Errrrr. DH and I both were irate. Then the mortgage broker calls today and the PMI companies are now requiring at least 10% down payments!!! We can't do it. There is just no way. Initially when we met with him he discussed the FHA programs available, and now he suggested applying for and FHA loan. He's getting the paperwork to us today. We may need to extend our closing date for the second time, and the seller's lawyer is sending snarky letters to our attorney about it. DH and I can't help but feel a little pessimistic about this. We had hoped to close before BabyPear arrives, but that is looking like it isn't going to happen.
The stress got to me a little this afternoon. I had a few strong contractions, so I put my feet up and rested. I'm feeling better, but I'm still angry.
