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View Full Version : Closing next Fri (5/18) and our loan product is switched


tazunemono
05-10-2007, 06:46 AM
We had filled out an enormous amount of paperwork for our FHA loan we were getting through our bank, and the FHA appraisal was ordered but I get a call yesterday from my loan officer stating there was a problem - the individual who has an FHA "license" or whatever approval they need neglected to transfer the "codes" when she switched jobs. Now THE ENTIRE BANK cannot process FHA loans until June 1st. They scrambled, we cringed.

Now, they are putting us in a loan that we didn't qualify for because we made TOO MUCH MONEY (last years AGI was $42,000, this year I make $50,000, wife's income is $24,000). I ask, how is this possible, and they say "it's normally not, our supervisor can override..." This isn't a fly-by-night broker, this is a MAJOR BANK! Here are my new terms:

100% financing
No PMI
No down payment
$2,200 closing costs incl. prepaids
6.9% interest 30-year fixed.

WHat is this product? Is it a Mortgage Revenue Bonds or Mortgage Credit Certificate? My credit score was 10 points low and prevented me from getting a "conforming" loan, they said. I'm seriously worried that something is going to kill this deal, and we'll be without a place to live at the end of May. We are under contract to purchase the house by the 18th. One good thing is that we get to keep approximately $3500 cash in our savings (no FHA downpayment req'd!) with this new loan, and the monthly payment (P+I+insurance) is only $1 more per month than with the FHA. Any opinions? I've tried to call my loan officer twice this morning but he's in meetings so I have left voice mails and emails. I'm supposed to receive a proper good faith estimate today, and the appraisal has been ordered.

Next Question: I've already paid $500 earnest money and $299 closing costs. Seller is bringing $3000 toward closing costs and prepaids. How best to use this money? Can I prepay more insurance or even a mortgage payment? The overpayment is nearly $800. Can it be held in escrow, or should I have the seller knock it off the top of the house?

firstsource
05-11-2007, 06:40 AM
I would suggest that you have the seller lower the price by 800.00, as you won't be able to get the money back legally.

Is the amount of the seller paid closing costs 3% of the sales price? Otherwise does not make sense.

tazunemono
05-11-2007, 06:56 AM
We came up with an addendum to our contract and forwarded to the seller, asking for a $800 reduction in the purchase price. He agrees, we just have to have his signature. We asked for $3K in closing when we were getting an FHA loan. This barely covered FHA closing but is more than we need for closing the loan we are in now. Loan will be for $134,200.