Bit the bullet and app'd.

[boomhower1820]

Me and my wife had just started looking around. We weren't planning on doing anything for a couple months as our last couple bank statements pretty much suck but a house we looked at a couple days ago dropped almost 10% this morning. I knew if I didn't at least try for it I would regret it. My real estate agent gave me the number to a local lender that does FHA but they didn't have time today. Called a lady at Wells Fargo and got one of the general pre-approvals so we could put a bid in. My real estate agent is currently getting beat down by the HUD site but is trying to put a bid in. One nice bonus is the property qualifies for the $100 FHA loan. We have a long road to go but the process is started. So off I am on my first go round in the mortgage stress grinder.

[Mortgagase]

Fasten your seat belt, the road could get bumpey! Good luck!

[debfree4mibaby]

Wishing you well as you start home purchasing journey!!!

[MelodyT]

Congrats on getting it started. Good luck. Keep us updated on how things are going.

[boomhower1820]

She finally got the bid submitted last night. The cutoff was midnight so we just made the wirer. I doubt there were any other bids and mine was full price with no closing assistance so I can't imagine it won't be accepted. Now for the wait, I have no clue how fast they move on HUD houses. My guess is not fast.

[CharLyn]

I am exited for you! I am curious if you plan to put lending apps in with other lenders? It sounds like you went with Wells Fargo just to the Approval (the golden ticket) to bid on the home before the deadline. If the bid is accepted, are you committed to Wells Fargo as a lender?

 

If you put in apps elsewhere, how many will you submit for comparison?

 

 

 

Thank you for sharing your experience. It helps me learn:)

~CL

[boomhower1820]

I am exited for you! I am curious if you plan to put lending apps in with other lenders? It sounds like you went with Wells Fargo just to the Approval (the golden ticket) to bid on the home before the deadline. If the bid is accepted, are you committed to Wells Fargo as a lender?

 

If you put in apps elsewhere, how many will you submit for comparison?

 

 

 

Thank you for sharing your experience. It helps me learn:)

~CL

 

Actually I had wanted to go with Wells to start with but was willing to give my agents lender a shot as well. I would have applied with Wells regardless. I have read many many success stories here and on other boards with Wells and FHA loans. I really don't have any intent at this point of applying anywhere else. My credit union doesn't do FHA and most of the banks around here are very very small credit unions. Kind of a lack of options since I would highly prefer someone with a local office. BB&T would be about the only other option.

[CharLyn]

I am exited for you! I am curious if you plan to put lending apps in with other lenders? It sounds like you went with Wells Fargo just to the Approval (the golden ticket) to bid on the home before the deadline. If the bid is accepted, are you committed to Wells Fargo as a lender?

 

If you put in apps elsewhere, how many will you submit for comparison?

 

 

 

Thank you for sharing your experience. It helps me learn:)

~CL

 

Actually I had wanted to go with Wells to start with but was willing to give my agents lender a shot as well. I would have applied with Wells regardless. I have read many many success stories here and on other boards with Wells and FHA loans. I really don't have any intent at this point of applying anywhere else. My credit union doesn't do FHA and most of the banks around here are very very small credit unions. Kind of a lack of options since I would highly prefer someone with a local office. BB&T would be about the only other option.

 

 

Thanks for the response. I'll do some research on Wells. I can't wait for your next update

[boomhower1820]

Got the some info from Wells. They was check stubs showing I make $xx a month, issue is I don't. I never said I did. I told the later what my regular pay is and what my last two years have been, maybe they are going of the W2's. Other issue is they want letters of explanations for two collections. Both of them are apartments from around five years ago. Not quite sure where to start with them. One is small for damages and I pretty much just said screw it and never paid it. The second one I broke the lease on it. Short of it is me and my now wife got a place we probably shoulnd't have. She got pregnant and put out of work almost immediately. It was to much for my income alone and we left a month early. I offered to pay the last months rent plus some damages the dog did. They said we didn't leave properly and charges another two months rent plus court fees for "evicting" us. That's a pretty crappy one to have to explain. Is the consensus to be short and sweet or more long winded and detailed? Other than that it's all pretty straight forward. I still think out bank statements are going to sink us in the end but we'll let it play out.

 

Another odd thing is the closing cost for a 30 years loan were almost double the 15 year option. Doesn't make sense to me, don't care that much as I intend to take the 15 year route, just thought it was odd.

Edited January 9, 2012 by boomhower1820

[boomhower1820]

Well our bid was accepted. I go to sign the sales contract tomorrow. On to the next step...

[CharLyn]

I guess a letter of explanation was all they needed and didn't matter what the explanation was? Did I interpret that right if they accepted your bid?

[boomhower1820]

I guess a letter of explanation was all they needed and didn't matter what the explanation was? Did I interpret that right if they accepted your bid?

 

It's two different things. The LOE is for the underwriter, it will be used when they determine to fund my loan or not. The bid was for HUD itself, i.e. the offer to by the house. HUD accepted the bid, or agreed to sell the house to me. Now I go sign my sales contract tomorrow and get that and the docs(bank statements, 401k statements, blood from my first born, etc.) to Wells and they will start doing their thing to decide whether they want to give me money or not. Somewhere in here they will do appraisal and inspection but I don't know where that falls since it's my first time through this.

[bama]

how many months of bank statements did they want? We had an over draft last month that was covered by over draft protection, but I'm sure that doesn't look good.

[boomhower1820]

how many months of bank statements did they want? We had an over draft last month that was covered by over draft protection, but I'm sure that doesn't look good.

 

They wanted two months worth. That's my worry. They are clean but dont show much surplus due to giving the kids a really nice Christmas. We knew we'd be buying this year and this Christmas would be a lot tighter so we went overboard. We weren't planning on doing anything until march when the statements would be better but I have to try for this good of a deal.

 

 

Sent from my iPhone 4S using Tapatalk

[boomhower1820]

Contract is signed and docs sent to the bank. Only thing I don't like is I have to pay for the inspection before I will find out if I get the loan.

 

 

Sent from my iPhone 4S using Tapatalk

[boomhower1820]

Not much to update. The initial sales contract was kicked back and had to be redone. My agent messed up some minor details and had to redo it, nothing of any real importance but HUD wants some things done in a very specific way. It was resigned and sent back out. Got my updated and hopefully final loan docs from WF. Rate will be 3.5% at 15 years. She needs a couple of other docs from me and those papers signed. After my earnest money is deduction closing costs is only going to run ~$1700 which made me pretty happy. Estimated closing date 2/28/12. I'll get those to her next Thursday and that's also when I am getting the inspection done.(Well hopefully, I'm still waiting to hear if the current owner(bank) is going to turn the utilities on or if I will have to get them turned on in my name which will royally tick me off. I'm betting they won't) $325 for an inspection reasonable? So far the process is running smooth, finger crossed it stays way.

[boomhower1820]

Still waiting to get the sales contract back from the seller. We made all the corrections they wanted so I don't know what the hold-up is. It looks like we are going to have to reschedule the inspection now as well. Pretty much stuck in limbo until they get that back to us. My LO has all the loan docs and is waiting on the contract as well.

[Brian B The Loan Professor]

Got the some info from Wells. They was check stubs showing I make $xx a month, issue is I don't. I never said I did. I told the later what my regular pay is and what my last two years have been, maybe they are going of the W2's. Other issue is they want letters of explanations for two collections. Both of them are apartments from around five years ago. Not quite sure where to start with them. One is small for damages and I pretty much just said screw it and never paid it. The second one I broke the lease on it. Short of it is me and my now wife got a place we probably shoulnd't have. She got pregnant and put out of work almost immediately. It was to much for my income alone and we left a month early. I offered to pay the last months rent plus some damages the dog did. They said we didn't leave properly and charges another two months rent plus court fees for "evicting" us. That's a pretty crappy one to have to explain. Is the consensus to be short and sweet or more long winded and detailed? Other than that it's all pretty straight forward. I still think out bank statements are going to sink us in the end but we'll let it play out.

 

Another odd thing is the closing cost for a 30 years loan were almost double the 15 year option. Doesn't make sense to me, don't care that much as I intend to take the 15 year route, just thought it was odd.

Based on the rate you shared the costs are likely lower since that rate should be paying a decent credit towards the costs - good luck with the process

B

[boomhower1820]

Got the some info from Wells. They was check stubs showing I make $xx a month, issue is I don't. I never said I did. I told the later what my regular pay is and what my last two years have been, maybe they are going of the W2's. Other issue is they want letters of explanations for two collections. Both of them are apartments from around five years ago. Not quite sure where to start with them. One is small for damages and I pretty much just said screw it and never paid it. The second one I broke the lease on it. Short of it is me and my now wife got a place we probably shoulnd't have. She got pregnant and put out of work almost immediately. It was to much for my income alone and we left a month early. I offered to pay the last months rent plus some damages the dog did. They said we didn't leave properly and charges another two months rent plus court fees for "evicting" us. That's a pretty crappy one to have to explain. Is the consensus to be short and sweet or more long winded and detailed? Other than that it's all pretty straight forward. I still think out bank statements are going to sink us in the end but we'll let it play out.

 

Another odd thing is the closing cost for a 30 years loan were almost double the 15 year option. Doesn't make sense to me, don't care that much as I intend to take the 15 year route, just thought it was odd.

Based on the rate you shared the costs are likely lower since that rate should be paying a decent credit towards the costs - good luck with the process

B

It is, around $1300 or so if memory serves, don't have the GFE with me at the moment.

 

 

Sent from my iPhone 4S using Tapatalk

[TheBanker]

Good luck! I'm currently pending (with release) on a home in the city I currently live in. Everything is going smoothly, and I should close mid February. Hopefully your purchase goes smoothly, as well!

[boomhower1820]

Well good news and bad news today.

 

The good news, got the sales contract and appraisal back yesterday. The HUD appraisal saves me $470 so that's definitely good.

 

Now the bad. They sent the paperwork I need to have the utilities turned on. Part of the deal is if I have them turned on I have pay $150 to re-winterize the house. So $150 plus whatever the power company and water dept will charge to turn on and disconnect the service. Talk about adding up for just an inspection, all told I'm going to be spending $600 to get this house inspected. If my financing falls through I'm going to be hot after laying out this much.

 

The 45 day clock to close has officially started so here we go!

[Brian B The Loan Professor]

Well good news and bad news today.

 

The good news, got the sales contract and appraisal back yesterday. The HUD appraisal saves me $470 so that's definitely good.

 

Now the bad. They sent the paperwork I need to have the utilities turned on. Part of the deal is if I have them turned on I have pay $150 to re-winterize the house. So $150 plus whatever the power company and water dept will charge to turn on and disconnect the service. Talk about adding up for just an inspection, all told I'm going to be spending $600 to get this house inspected. If my financing falls through I'm going to be hot after laying out this much.

 

The 45 day clock to close has officially started so here we go!

Putting funds at risk is all part of the process - a cost of doing business - if they find stuff that saves you down the road you will be grateful you spent the money -

B

[boomhower1820]

Well good news and bad news today.

 

The good news, got the sales contract and appraisal back yesterday. The HUD appraisal saves me $470 so that's definitely good.

 

Now the bad. They sent the paperwork I need to have the utilities turned on. Part of the deal is if I have them turned on I have pay $150 to re-winterize the house. So $150 plus whatever the power company and water dept will charge to turn on and disconnect the service. Talk about adding up for just an inspection, all told I'm going to be spending $600 to get this house inspected. If my financing falls through I'm going to be hot after laying out this much.

 

The 45 day clock to close has officially started so here we go!

Putting funds at risk is all part of the process - a cost of doing business - if they find stuff that saves you down the road you will be grateful you spent the money -

B

 

Oh I completely agree. It's the re-winterizing that burns my chaps. I would rather just leaver the power on with the thermostat set low than to re-winterize the whole place.

[Brian B The Loan Professor]

sorry I live in California winterizing is not something we deal with out here -

 

but I hear you - seems like money down the drain -

[DiamondDan73]

Good luck with everything. We are going to bite the bullet next week, I hope. Can you please tell me more about the $100 FHA Loan? Thanks