Buying your first home in US. Headache or super fun time?

[Fandango 1,440]

So today is the third week since we put the contract in, and our realtor said it should take 3 weeks to hear back....but we haven't heard anything yet.

I know beeing a short sale it can take forever...and to tell you the truth you can get amazing deals but also short sales take the fun out of buying a house. The wait makes all the excitment go away.

We were planning to negoicate some more in case they don;t want to pay closing costs, but it takes so long to hear back from them that we will pay closing and anything they ask just to get the house.

In may our rent lease expires so we are trying to work around that time line, and i know that a short sale can take months...

Do you think if they come back and accept our offer...from that point on can still take more than 60 days?

Getting an approval for a ss in 3 weeks would be ridiculously fast. While it's true that some banks are moving faster, it's sadly not the norm. Perhaps the bank your realtor is talking about is known for being super fast, I dunno. Btw, most of the delay in short sales is waiting for the bank to review and accept the offer...usually, once price is determined, agent will get a conditional approval with a fast deadline to close, usually 30 days.

I would brace myself for a much longer wait for approval. A good indicator of whether you're close to hearing back would be at least a few business days after the BPO has been done. If there hasn't been a BPO, then you're not getting approval anytime soon.

doesn't make any sense to me why they would want the money back...some people are forced to move with their new job...but are not willing to give up their home yet...

They want the money back because it's an incentive for ppl to buy a primary residence. Not for income producing property.

[Fandango 1,440]

We already started the loan process a week ago with our mtg officer(he sent our paperwork to the underwritter), he wants to get us the loan first, so there are no hiccups on the way that will slow us down even more than it's necesarry. Because worst case scenario..if we don;t get this home we will get another one, and he said it's better to know you are aproved.

I hope you mean that you are going through the pre-approval process and not that your loan is actually going through. If you're actually going through the loan process, at some point the house needs to qualify. Meaning: it needs to appraise. I hope your bank or whomever you are dealing with has let you know what the plan will be if the bank doesn't approve this short sale, and the bank has already done an appraisal on the house - meaning: who is going to pay for that appraisal?

[silvana.toma 15]

I hope you mean that you are going through the pre-approval process and not that your loan is actually going through. If you're actually going through the loan process, at some point the house needs to qualify. Meaning: it needs to appraise. I hope your bank or whomever you are dealing with has let you know what the plan will be if the bank doesn't approve this short sale, and the bank has already done an appraisal on the house - meaning: who is going to pay for that appraisal?

Hmmmmm.....we are actually doing the actual loan itlsef not the pre-aproval. And i will have to ask my husband if the apraisal came up when he was signing the paperwork, as i wasn't there.

What is BPO?

Our realtor called us this week on monday to let us know that the bank reviewing our offer was doing some sort of apraisal on the house ...and the realtor said that is a good sign for us because that means they are working on it.

i will let you know as soon as i hear something.

[silvana.toma 15]

Hmmmmm.....we are actually doing the actual loan itlsef not the pre-aproval. And i will have to ask my husband if the apraisal came up when he was signing the paperwork, as i wasn't there.

What is BPO?

Our realtor called us this week on monday to let us know that the bank reviewing our offer was doing some sort of apraisal on the house ...and the realtor said that is a good sign for us because that means they are working on it.

i will let you know as soon as i hear something.

OK just talked to my husband ...and he said we are getting a loan aproved based on his credit and financial history, etc, NOT for a specific house, so we are trying to get aproved for x amount of dollars. Then if we are getting the house, then we start doing the apraisal and etc..and that will take 30 days or less. The mrtg guy said it's better to do it this way, because the VHDA loan we are applying for has very strict guidelines and he wants to make sure we are even getting the loan, so that we don;t go through all the process just to find out we don;t have financing...

[Fandango 1,440]

OK just talked to my husband ...and he said we are getting a loan aproved based on his credit and financial history, etc, NOT for a specific house, so we are trying to get aproved for x amount of dollars. Then if we are getting the house, then we start doing the apraisal and etc..and that will take 30 days or less. The mrtg guy said it's better to do it this way, because the VHDA loan we are applying for has very strict guidelines and he wants to make sure we are even getting the loan, so that we don;t go through all the process just to find out we don;t have financing...

Sounds to me like you are doing a pre-approval process. Pre-approved means you pretty much go through the whole approval process, without the sales contract.

Here's the thing: in order for a loan to close, two things need to qualify: buyer and house.

Buyer needs to obviously prove (s)he can afford the house, then the house needs to qualify that it's worth the loan. Every home loan requires a sales contract. If the sales contract has been submitted, then you are going through the entire process. If no contract has been submitted, it's a pre-approval process.

BPO means Broker Price Opinion, which is what you were talking about when you said the bank was doing an appraisal on the house. Usually it's a BPO and not an appraisal. It's a matter of splitting hairs, but appraisals are done by appraisers, and BPOs are done by agents. You realtor is right, it IS a good sign that they are doing it.

Personally, I wouldn't have advised anyone to formally start the loan process until bank approval, but that's just me. I guess everyone has their differing reasons. *shrug* But technically, if you're going through the loan, and worst case, you for some reason don't get approval, AND your bank orders an appraisal, usually buyer pays those fees. I wonder how your bank would handle that.

But let's just stay positive and assume you're going to get it!!!

(disclaimer to whole post: my knowledge is based on how things are done in FL only)

Edited March 12, 2011 by Lisa C

[silvana.toma 15]

Sounds to me like you are doing a pre-approval process. Pre-approved means you pretty much go through the whole approval process, without the sales contract.

Here's the thing: in order for a loan to close, two things need to qualify: buyer and house.

Buyer needs to obviously prove (s)he can afford the house, then the house needs to qualify that it's worth the loan. Every home loan requires a sales contract. If the sales contract has been submitted, then you are going through the entire process. If no contract has been submitted, it's a pre-approval process.

BPO means Broker Price Opinion, which is what you were talking about when you said the bank was doing an appraisal on the house. Usually it's a BPO and not an appraisal. It's a matter of splitting hairs, but appraisals are done by appraisers, and BPOs are done by agents. You realtor is right, it IS a good sign that they are doing it.

Personally, I wouldn't have advised anyone to formally start the loan process until bank approval, but that's just me. I guess everyone has their differing reasons. *shrug* But technically, if you're going through the loan, and worst case, you for some reason don't get approval, AND your bank orders an appraisal, usually buyer pays those fees. I wonder how your bank would handle that.

But let's just stay positive and assume you're going to get it!!!

(disclaimer to whole post: my knowledge is based on how things are done in FL only)

tx, i will keep you posted, and let's hope we don't get charged anything we should't be charged for in case we don;t get the house.

[silvana.toma 15]

Hey guys...just wanted to give you an quick update to our home buying process..

We recieved news from the bank on the short sale house we are trying to purchase, and they are willing to pay the 5250 in closing costs, we are only waiting for the second bank to aprove the closing costs, and we are good to sign the radified contract(not sure how you spell it). Also we are very close on beeing aproved for the loan with the underwritter. They are very happy with all the package, and it seems everything is running smooth. OUr realtor said we should close by may 8th.

I was wondering if we could lock in our interest rate before the radified contract...as it;s 4.6% the lowest it's been in months...but our mtg broker said we can not do that until we have a radified contract.

I'll let you know more, but i have to say short sales are not always a pain, and if you get a short sale...chances are you get the deal of your life.

[Kimbear 53]

that sounds great Silvana, you give me hope!

we just signed our offer last week and the sellers accepted it no problem now we have to just wait for the lender. luckily there is only one bank involved. I hope my short sale is only 3 months like yours! my lawyer and Realtor told me to expect a 6 month wait BOOOOOOOOOOO!

[silvana.toma 15]

that sounds great Silvana, you give me hope!

we just signed our offer last week and the sellers accepted it no problem now we have to just wait for the lender. luckily there is only one bank involved. I hope my short sale is only 3 months like yours! my lawyer and Realtor told me to expect a 6 month wait BOOOOOOOOOOO!

In all honesty we knew from the begining this short sale will not be a long one. Right before us there was another contract on that house, where the bank aproved the price, everybody was happy ..but the buyer couldn't get financing...

Our realtors said that this will be easy because the bank already agreed with the price and that is half the battle..to be honest that was the only reason we accepted to get into a short sale.

Now, our realtors told us the sellers will not pay closing, but we fight it, and the sellers bank is also paying all closing costs...and that is so awsome!

It took 6 weeks to hear back from the bank after we put our offer in...the realtors told us 3 weeks but it took 6...but at least we are on the right track:)

Good luck to you and let me know how it goes!

[silvana.toma 15]

OK...a little update...we almost got the house, we just need the bank to apraise it, and we are good to sign the papers. However, my final opinion about buying a house in the states is that this HAS to be the biggest ripp-off, scam, or however you want to call it, in history. Sorry, it's sad...but true:(

You are beeing raped from every side, the bureaucracy here is insane. This experience is making me save as much money as i can to be able to pay the house off as quickly as possible and not deal with banks EVER!

And please people, for the love of GOD, don't take a million mortgages out on your house. Unless you are saving a life, there is no real reason to do that. I believe that the lifestyle of beeing in debt until you die is a poor choice, and has to change, people have to wake up and not let banks govern the world....and their lives.

Sorry...as you can see i am a bit bitter but i can asure you, it's not without a reason!

[silvana.toma 15]

hey guys,

Just wanted to give you an update on our short sale. I apploogize ahead of time if i will sound like negtive nancy bi##hie pants...

We signed our papers with our bank today, and to be honest it'a all so crazy, that i don't know what to think of it.

At first we were told the closing cost will be around 5k, that is around 3% of the house price, now we are told it will be 6,550k(thank god the sellers will pay at least 5k).

We were told that with the VHDA loan we don't have to pay any MI, and also NO down payment...well....that was all a lie...because our house went up from 175 to 181 because of the MI and the 3.5 downpayment...or at least that's what the MO told us.

Our apraiser is $450(don't know if it's high or low), plus our VHDA loan is 5.25%(i thought is a bit high)

We are suposed to close by 6th of may, so if the apraiser for some reason doesn't do it by then we are beeing charged everyday $100. Why we were so rushed to close i have no ideea.

Also he gave us the list of what closing costs are...oh boy...the bigest BS you ever seen in your life...one that made me laugh was $250 for survey-meaning some guy will come and say your land is from here to there...first of -the house contract should have all the details regarding your property...with how big your land is and everything else. WHY do i need to pay $250 for someone to come and tell me something that is already in my contract???

Honestly...we went through hell and back to buy this house ...but today with all the BS and bureaucracy...i was sitting in that chair in this MO office and i was thinking ...what the hell are we doing??

We have been so manipulated in this process that i feel sick to my stomach..Our new realtors TOLD us who to work with, put all the other MTG officers down, so we had almost no choice, the new mrtg people got on top of things, and by the time we knew it it was all said and done with. I mean looking back i realise how stupid we were, we should have at least get other rates and compare...

Sorry i made your head big, and if you don't understand everything i said..don't worry.. neither did I.

I just hope this house is worth the pain and suffering we went through, and i think when we will get the keys i will have few extra wine glasses

[Rebecca Jo 1,962]

You want a survey because the contract doesn't tell you where your lot lines are. Your contract doesn't tell you if there are any utility rights of way running across your property. Your contract doesn't tell you if the description in the deed you will receive matches the physical parameters of the property. Your contract doesn't tell you if your neighbors fence or driveway or (God forbid) the room addition he built is sitting on your property.

That's why you want a survey.

Also, if you don't pay MI out of your pocket, they add it to the loan amount. That's why your loan went up. Which is why your closing costs are higher than you originally thought.

Also, it is not too late to shop around for another loan. The deal on the property has nothing to do with who you get the loan from.

Edited April 14, 2011 by Rebecca Jo

[ADMIRE 3]

hey guys,

Just wanted to give you an update on our short sale. I apploogize ahead of time if i will sound like negtive nancy bi##hie pants...

We signed our papers with our bank today, and to be honest it'a all so crazy, that i don't know what to think of it.

At first we were told the closing cost will be around 5k, that is around 3% of the house price, now we are told it will be 6,550k(thank god the sellers will pay at least 5k).

We were told that with the VHDA loan we don't have to pay any MI, and also NO down payment...well....that was all a lie...because our house went up from 175 to 181 because of the MI and the 3.5 downpayment...or at least that's what the MO told us.

Our apraiser is $450(don't know if it's high or low), plus our VHDA loan is 5.25%(i thought is a bit high)

We are suposed to close by 6th of may, so if the apraiser for some reason doesn't do it by then we are beeing charged everyday $100. Why we were so rushed to close i have no ideea.

Also he gave us the list of what closing costs are...oh boy...the bigest BS you ever seen in your life...one that made me laugh was $250 for survey-meaning some guy will come and say your land is from here to there...first of -the house contract should have all the details regarding your property...with how big your land is and everything else. WHY do i need to pay $250 for someone to come and tell me something that is already in my contract???

Honestly...we went through hell and back to buy this house ...but today with all the BS and bureaucracy...i was sitting in that chair in this MO office and i was thinking ...what the hell are we doing??

We have been so manipulated in this process that i feel sick to my stomach..Our new realtors TOLD us who to work with, put all the other MTG officers down, so we had almost no choice, the new mrtg people got on top of things, and by the time we knew it it was all said and done with. I mean looking back i realise how stupid we were, we should have at least get other rates and compare...

Sorry i made your head big, and if you don't understand everything i said..don't worry.. neither did I.

I just hope this house is worth the pain and suffering we went through, and i think when we will get the keys i will have few extra wine glasses

hey Silvana,

first, i want to say how much i enjoy reading your posts. No matter what u write, i always find myself glued to the end. You are a naturale with writing.

well, we are also in the middle of house-buying too, and oh boy, the costs are gradually rising here too. I am almost too scared to look at the good faith(?) estimate, knowing how ridiculously high those costs are, and almost powerless in doing anything about it.

we shld close pretty soon too after we get the appraisal done.

[silvana.toma 15]

hey Silvana,

first, i want to say how much i enjoy reading your posts. No matter what u write, i always find myself glued to the end. You are a naturale with writing.

well, we are also in the middle of house-buying too, and oh boy, the costs are gradually rising here too. I am almost too scared to look at the good faith(?) estimate, knowing how ridiculously high those costs are, and almost powerless in doing anything about it.

we shld close pretty soon too after we get the appraisal done.

hey thanks ..you just made my day!

Today we were aproved for the biggest scam in the world- the home loan

Yes, banks are helpful, but they are also very greedy. For example from your $1200 ONLY $200 goes towards your home loan, the rest goes to the bank and other people who also have to make a living on your back.

Don't get me wrong, i believe every country has it's flaws, for ex: romania where i come from you will never get a loan unless you are a lawyer, or a doctor,etc because only a very few people qualify for a home loan, so 90% of the young people live with their parents:(

On saturday we have our home inspection, with some guy our realtor highly recomended. She told us some inspectors are really bad and in order to be on the safe side to with this guy....again...dumb ...dumb ...dumb...dumb...what were we thinking???

Ok, so all in all, the only thing that makes me smile, and forget all the shenanigans is the fact that we are getting a beautiful home for a good price. 3200 sq feet- 5 bedrooms, nice back yard, super neighbourhood,all the upgrades possible( full bar downstairs, columns, granite, etc etc) for 181k, not bad, right?

This experience had it's ups and downs, and my advice to first time home buyers is that you can never be too careful when you chose your realtor, mtg officer, etc, always second guess everything, and do your research on the side, because people that might seem honest, might "help" you make one of the bigest mistakes of your life.

Other than that, for those of you still shopping for a house...happy shopping!

[Rebecca Jo 1,962]

hey thanks ..you just made my day!

Today we were aproved for the biggest scam in the world- the home loan

Yes, banks are helpful, but they are also very greedy. For example from your $1200 ONLY $200 goes towards your home loan, the rest goes to the bank and other people who also have to make a living on your back.

Don't get me wrong, i believe every country has it's flaws, for ex: romania where i come from you will never get a loan unless you are a lawyer, or a doctor,etc because only a very few people qualify for a home loan, so 90% of the young people live with their parents:(

On saturday we have our home inspection, with some guy our realtor highly recomended. She told us some inspectors are really bad and in order to be on the safe side to with this guy....again...dumb ...dumb ...dumb...dumb...what were we thinking???

Ok, so all in all, the only thing that makes me smile, and forget all the shenanigans is the fact that we are getting a beautiful home for a good price. 3200 sq feet- 5 bedrooms, nice back yard, super neighbourhood,all the upgrades possible( full bar downstairs, columns, granite, etc etc) for 181k, not bad, right?

This experience had it's ups and downs, and my advice to first time home buyers is that you can never be too careful when you chose your realtor, mtg officer, etc, always second guess everything, and do your research on the side, because people that might seem honest, might "help" you make one of the bigest mistakes of your life.

Other than that, for those of you still shopping for a house...happy shopping!

Silvana, if the deal on the house is so great, why are the other costs so unpleasant to you? Especially given the fact that you yourself say you could not have purchased a house in your home country, let alone a house like the one you describe.

Your home loan deal actually sounds pretty sweet to me. If I read you correctly, you are paying about $1200 out of pocket for this house. That's nearly unheard of.