topic Re: Go through UW again for changing condo unit in same building?! in Mortgage Loans

Go through UW again for changing condo unit in same building?!

MTSN — Tue, 21 May 2013 23:18:58 GMT

So I'm currently under contract for a new build condo unit in Denver. I have been under contract since early April and have a closing date of late June when the building is completed. I've been approved for the mortgage and am basically just waiting at this point.

The developer called me with good news - the guy in the unit above me couldn't get financing so he backed out of the contract which allows me to "move up" literally and figuratively. The only difference between the units is the floor - they are exactly the same layout, sq footage, amenities, etc. I called the loan officer today and told her the good news, and she was not happy. She said everything on the loan has to be redone and I have to go back through underwriting again. I explained everything was the same except floor and that I'll even pay the difference in purchase price ($7.5k) in cash so the loan amount wouldn't even need to change. She said it didn't matter due "legal documentation".

Is that true or is she overreacting?? Will they also have to re-run my credit? I feel bad, but honestly that's kinda the LO's job and I'm getting into a unit that will be far better for me. I'm hoping she doesn't have to go through too much to make it happen because she has been great and responsive.

Re: Go through UW again for changing condo unit in same building?!

aussiesareforever — Wed, 22 May 2013 00:35:40 GMT

Why does it cost so much more to move upstairs, if everything else is the same? Just curious

Re: Go through UW again for changing condo unit in same building?!

pizzadude — Wed, 22 May 2013 00:43:21 GMT

I'm guessing that your LO is right about this. They'll very likely have to redo the submission to underwriting, do a new appraisal, etc....

Dunno if they'll have to pull your credit again, but hopefully not. IMO it's worth it if you're getting a better place.

I think the underwriting process is very rigidly controlled, so there may not be a way to make any changes without starting over.

Re: Go through UW again for changing condo unit in same building?!

Anonymous — Wed, 22 May 2013 01:08:28 GMT

If title work has been ordered, the lender would need to re-order with the new addresss.They would also need to appraise the new unit. If the appraisal on the old unit is complete, they would not be able to transfer the appraisal fee, as this is a new appraisal, so you would have to pay another appraisal fee.They would also need to order a new flood certification, but that only takes a minute or two, so no big deal. The loan officer would also have to redo the loan application and other docs with the new unit and have you sign the revised docs.

Other than that, it shouldn't be that big of a deal. The new underwrite shouldn't be an issue, since you're bringing the $7k to closing. It's a little extra work for the LO, but not much. It's not as if you've had a material change in income, credit or assets that could kill the deal, so don't feel bad.

Get the unit that you'll be happy with, and let your lender and LO do their part to make it happen.

Re: Go through UW again for changing condo unit in same building?!

StartingOver10 — Wed, 22 May 2013 11:28:48 GMT

@Anonymous wrote:
If title work has been ordered, the lender would need to re-order with the new addresss.They would also need to appraise the new unit. If the appraisal on the old unit is complete, they would not be able to transfer the appraisal fee, as this is a new appraisal, so you would have to pay another appraisal fee.They would also need to order a new flood certification, but that only takes a minute or two, so no big deal. The loan officer would also have to redo the loan application and other docs with the new unit and have you sign the revised docs.

Other than that, it shouldn't be that big of a deal. The new underwrite shouldn't be an issue, since you're bringing the $7k to closing. It's a little extra work for the LO, but not much. It's not as if you've had a material change in income, credit or assets that could kill the deal, so don't feel bad.

Get the unit that you'll be happy with, and let your lender and LO do their part to make it happen.

^^^Exactly right. Anytime you change an address/property/unit, the lender will have to essentially start over because the full approval is property specific.

It shouldn't really take too long to go through the process. It is much better to change the unit now to one you really want rather than continuing in a purchase you don't love as much because it is more convenient. Good luck in getting the property you really want to buy.

Re: Go through UW again for changing condo unit in same building?!

MTSN — Wed, 22 May 2013 17:05:52 GMT

Thanks for the advice guys. The premium to move up a floor is because the building is only 4 stories, and the way it's built is that it's way above grade and has 11' ceilings so one additional floor has substantially better views.

The real reason I am even in this boat is because of something very unexpected. I'm having them do low voltage/home theater wiring, and when I did the walk through I noticed something really strange. The wall I was going to mount the TV and speakers on was about 4' shorter than what it looked like in the floorplan and honestly completely screwed up the whole look and feel of it. Very long story short, they were building my unit to be ADA compliant (which they never told me about) and the floorplan was changed to allow the building to pass inspection. It was so different in my opinion it was enough for me to withdraw from the project, but the guy upstairs in the same unit backed out the day before because of financing issues. Values in this area are going up so quickly that even though the building isn't finished the zillow estimate value on each unit is over $10k higher than what we're all under contract for. The unit I'm moving up to was supposed to be relisted at $15k above what I was paying, but since I was so furious and disappointed they gave it to me for $7.5k higher and I got them to throw in a fridge too.

I do hope they don't have to pull my credit again and go through a ton of extra work, but you all are right that it's far better to do it now and go through the hassle and be happier in the long run than to compromise in the short term. I'll keep you all updated when I get more info from the LO.