topic Re: Finally, I'm a homeowner. My story: in Mortgage Loans

Finally, I'm a homeowner. My story:

Anonymous — Mon, 15 Mar 2010 22:33:06 GMT

I'll preface by saying, I'll let you cast your own judgment of Bank of America by remaining objective throughout my entire story. The story is very smooth until February. February was essentially an entire month wasted. My loan officer was a very nice person, but did not keep me updated until the VERY end of the process. My loan processor was simply amazing, I would still be renting without her diligence. My Realtor also did a nice job and stayed in touch, even when she had a short stint in the hospital! It was an amazing roller coaster ride.

To anyone who is thinking about making the plunge, be prepared for some bumps along the road and never give up no matter how bleak the situation seems. Use your resources, find out if you can check your application status online, ask the best way to contact your loan officer and loan processor. This is partly your realtor's job, but you speaking directly with these people goes a long way. And finally, if you are not satisfied with everything that is going on, let them know of your displeasure in a respectable way. I simply told my loan officer and loan processor I was going to share my story with thousands of message board readers who would be potential customers. Their managers then got involved and progress was made. I'm not an expert, but I went through an incredible journey and I would be more than happy to answer any questions a potential first time homeowner may have, so just send me a private message.

Keep in mind with every set of documentations I sent in, I also gave very detailed letters of explanation.

On January 4th I get pre-approved through Bank of America.

On January 5th I submit my first offer.

After a few counters, my offer is verbally accepted on January 10th.

On January 13th my offer is accepted in writing.

January 13 My closing deadline is set for February 19th

January 14th I submit my formal mortgage application.

January 17th I have my home inspection done.

January 18th my loan goes into underwriting.

January 20th I receive my first set of conditions.

January 25th my FHA appraisal is completed.

January 27th I submit all requested documentations.

February 3rd I receive another set of conditions.

February 4th I submit all requested documentations.

February 5th the seller will not grant permission to make repairs until it has a final approval letter (minus the repairs)

February 8th the underwriter requests documentations she has already received.

February 9th I submit all of the documentation again.

February 12th the underwriter requests additional documentation.

February 13 I submit all documentation.

My closing deadline is extended to March 6th.

February 18 The underwriter requests documentation I have submitted twice already.

February 20th I submit the documentation again.

February 25th the underwriter adds another condition which would not be available until March 1.

March 1st I submit the condition.

March 2nd I have to take a day off of work and go to my personal bank and have the manager write up a letter of explanation regarding the lack of an bank statement (my bank only issues savings account statements quarterly)

March 3rd the seller informs us the deal is off if the deal is not closed by March 8th.

March 3rd the BoA finally gives me the final approval letter

March 3rd the seller gives me permission to make the repairs.

March 3rd the repairs are made.

March 4th the FHA appraiser inspects the property and gives the final report.

March 5th my original underwriter is no longer with the bank and my file goes to a different underwriter.

March 5th the loan processor tells me the file has been "rushed" for the clear to close and closing is tentatively scheduled for March 8th.

March 6th the new underwriter comes into work and gives me loan the clear to close.

March 8th the loan processor sends all of my docs to the lawyer to set up the closing (10:00 A.M.)

Noon, the lawyer calls me and tells me we can close at 4:00

4:00 I start signing documents

4:30 the keys are mine

one week later I am a homeowner at 24 years old and it is amazing.

I can't believe I survived the entire process, it was truly that stressful.

Never give up and good luck to all potential buyers!

YEEEEEEEEEEEESSSSSSSSSSSSSSSSSSSSSSSSSS!

Re: Finally, I'm a homeowner. My story:

westcon5 — Mon, 15 Mar 2010 22:39:07 GMT

Congratulations Karpinski25 on the new home! I think we were supposed to close on the same day. I just got off the phone with the LO and I officially own a new home as of 4:30 as well.

I had a pretty seamless process compared to you. At least you stuck it out and saw it to the end!

Good luck with the move and enjoy!

Re: Finally, I'm a homeowner. My story:

Anonymous — Mon, 15 Mar 2010 22:51:29 GMT

Thanks for the story.

More and more, I'm starting to lean away from BoA. I know it's a complex processing, but it seems like with BoA, the process is usually bumpy.

Re: Finally, I'm a homeowner. My story:

Anonymous — Mon, 15 Mar 2010 23:12:19 GMT

Congrats man! You deserve it. At 24 you’re looking good. I’m 28 and am in the middle of escrow. Stressed out of my mind! Have been asked twice for multiple sets of documents. Sitting on the phone right now with the state tax board to get a letter faxed to me so I can turn it in. Escrow is suppose to close on the 30th this month and I’m freaking out because my LO is saying if we don’t get things turned in by Wednesday this week that it won’t happen and we will have to extend. My inspection is done. Appraisal is set to be done today.

I appreciate you posting your time line. It’s good to see someone else being asked for documents over and over. Makes me feel like I’m not just being singled out. I have great communication with my Realtor and LO. She keeps me very informed and has high spirits for the most part about my deal.

Re: Finally, I'm a homeowner. My story:

Anonymous — Mon, 15 Mar 2010 23:30:58 GMT

@Anonymous wrote:
Sitting on the phone right now with the state tax board to get a letter faxed to me so I can turn it in. Escrow is suppose to close on the 30th this month and I’m freaking out because my LO is saying if we don’t get things turned in by Wednesday this week that it won’t happen and we will have to extend. My inspection is done. Appraisal is set to be done today.

If you don't mind me asking, what info do you need from the state tax board?

I'm just curious since I may be starting the process and trying to be as prepared as possible. Thanks.

Re: Finally, I'm a homeowner. My story:

Anonymous — Mon, 15 Mar 2010 23:38:00 GMT

I have a tax lien from California for $2617. I have an installment agreement to pay it off and I needed them to fax me over the agreement sheet with the specifics about the account like the payment due date and how much the payments are because the bank is calculating that into my Debt to Income ratio.

I also had to contact the only collection company on my reports and setup payment arrangements with them. That also gets calculated into your DTI.

So my advice, anything derogatory you have, make sure it is either paid off, or setup some form of payment arrangement now to save yourself the hassle of needing to do it later when you’re in crunch time.

Re: Finally, I'm a homeowner. My story:

Anonymous — Mon, 15 Mar 2010 23:47:03 GMT

Thanks for the info, I greatly appreciate it.

Re: Finally, I'm a homeowner. My story:

ArmyStrong — Tue, 16 Mar 2010 01:27:58 GMT

Congratulations, Karp! Thanks for sharing your story. Seems like everywhere you turn, BOA is getting a bad name.

Way to hang in there!!

Re: Finally, I'm a homeowner. My story:

DallasLoanGuy — Tue, 16 Mar 2010 13:56:24 GMT

Congrats Karpinski

BofA is one of the last places you want to go for a loan unless you are using them for a niche program or guideline waiver.

Re: Finally, I'm a homeowner. My story:

Anonymous — Wed, 17 Mar 2010 01:36:25 GMT

What is so bad about BofA? I am using them for a niche program (4.375% yay) but was just curious what the issue with them is? They have been great with me so far.

Re: Finally, I'm a homeowner. My story:

Anonymous — Wed, 17 Mar 2010 18:59:25 GMT

If you dont mind me asking, what exactly were all the extra information they were asking for?

Re: Finally, I'm a homeowner. My story:

Anonymous — Fri, 19 Mar 2010 01:41:18 GMT

Here is a list of most of the conditions:

gift letter, transcripts from college, 2 year work and school history, letters of explaination for EVERY deposit made into my accounts, paper trail of every deposit made into my account, 24 months of rent history (i used a rent free letter) 2 months of bank statements (the major issue with this one was the fact my newly opened savings account did not have a statement because my bank only issues them quarterly. I had to give them a transaction report on 3 or 4 seperate occasions and had to have my personal bank's manager write them a letter of explaination and another manager had to speak with them on the phone), they asked for another gift letter on their template, copy of my contract for work, last 2 years w2's,

I know there a couple others that are slipping my mind right now. I dont really think any of the conditions they asked for were out of the ordinary, but instead of asking for everything at once, the UW asked for a couple things at a time and it became frustrating, especially because she was asking for things that I had already turned in. Like I said earlier, the main issue was the bank statement for the newly opened account. Just an FYI, I opened the account in December, so to anyone thinking about attempting to buy a home, only payroll deposits in your account for 2 months and don't open any new savings accounts!

Also, thanks to everyone who said congratulations. This past 10 days has been blur.

Re: Finally, I'm a homeowner. My story:

StartinOver — Sat, 20 Mar 2010 11:53:24 GMT

Congratulations. I am 54 and I don't think I could handle it as well and as organized as you did.

Re: Finally, I'm a homeowner. My story:

ArmyStrong — Sun, 21 Mar 2010 17:49:14 GMT

Damn. Do the underwriters just need to justify their existence or something??

Re: Finally, I'm a homeowner. My story:

mygoal750 — Mon, 22 Mar 2010 21:36:42 GMT

I refinanced with BofA last year. My original home loan was with Greenpoint Mortgage, which was acquired by Countrywide, which was acquired by BofA in November, 2008. My mortgage was originally at 8.875%, but this was back in 2001 when a "good" rate was 7.50%. I know our credit wasn't the best, so I was happy with 8.875%. But, then after 2001, things went downhill fast, and my credit took a beating. After getting all these pitches from BofA to check on refinancing, and with the gov't. programs in place to help stressed homeowners, I decided to try. I was hoping for a modification, because i thought that was all I would qualify for. I called BofA in late April, and my LO was fantastic! he said my score was 621 and 620 was the cut-off for an FHA loan @ 4.75%. He put the app through, it was approved with some conditions I expected, and he said it would be about 6 weeks to close. But, the processor was not the best. Her first call to me was late June. I did have to re-fax some documentation two times, but nothing too excessive. We finally closed in late September, and my house payment is much more manageable now. So, overall, it wasn't a great experience (5 months to close) but not all that terrible, either. And, their website is now updated, and more user friendly.

Re: Finally, I'm a homeowner. My story:

Anonymous — Thu, 25 Mar 2010 17:01:57 GMT

When it came down to crunch time, BoA came through. I just don't think the process should have been as nailbiting.

I just want people who are trying to buy a home to know not to give up until it is absolutely over.

There isn't a whole lot you are in control of throughout this entire process, but giving up is something you do have control of. If you give up, you have a 0% chance to obtain a mortgage. Stay determined and NEVER GIVE UP!!!

**ok that sounded like some sort of pre-game sports pep talk

Re: Finally, I'm a homeowner. My story:

Anonymous — Fri, 26 Mar 2010 01:22:15 GMT

wow--they did ask you for a lot. I had to turn in college transcripts too because of the lack of 2 year work history but other than that--the paperwork has been pretty easy (just w-2's and bank statements each month). I have a question regarding all of the deposits (explanations)--how did they want this? Could you just write a blanket letter excuse regarding the deposits? if you have multiple accounts where you are moving money between them, does this need to be explained too?

I actually have a lot of extra deposits each month because I work self-employed on the side--however the loan is just based on my w-2 income because I was told it would be a hassle to use any self-employed income. I thought that as long as the deposit was under $500 than it would not matter to the underwriter? I made multiple deposits separately to stay under the $500 threshold but now I am told it does not matter the amount.