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Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

MinAlamo
Contributor

Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

I think my husband and I are on the verge of a nervous breakdown right now, and I just need to vent somewhere, so here I am.

 

On May 31 we went to a local bank to talk to them about a land/construction loan. They told us they could do a one-time close with 5% down. Great! We applied online and got pre-approved for the amount we put in/requested. It took 2 weeks for the land seller to return from vacation & sign the contract for the land, and then we gave the title co our earnest money.

 

We got final numbers from our builder & realized we needed more money, so we asked the bank for a revised letter. The original LO we talked to stopped responding, so I called and talked to another LO. It was then that she realized - oh wait - the builder is not buying the land, so you'll have to do a two-close construction loan and put 10% down and pay 2 sets of closing costs. That changed EVERYTHING and we had to move money and numbers around to decide if it would work. We agreed, and the loan application was passed onto the construction loan LO at the bank.

 

In the meantime, the pump for the well did not work, and it took almost a month and a half for the new pump to finally be installed so we could get a well test/inspection done. We talked to our builder, picked out options, and started the "official" construction loan application.

It only took a few weeks at most and we were approved by the bank in August! JOY! After months of back and forth, messing with numbers, we crossed a major hurdle.

 

Oh wait. We need an appraisal. And it has to be at 80 LTV or else the deal is over unless we can come up with a boatload of cash (not happening, which I made clear to the LO). We pay the bank the fee for an appraisal on 9/4 (a hefty appraisal fee I might add, I assume since it's for new construction) and they tell us to expect it to be done by the 13th.

 

It's now the 16th. Neither I nor my builder has heard from the appraiser, so we know no one has the plans or specs in order to start working on the report. Time is ticking, and it's going on 4 MONTHS and we still have not been able to close to even start the process. Our land contract extension expires on Thursday.

 

We are on pins and needles, and there's no timeframe as to when this appraisal will be done. All of the stress, back and forth, sleepless nights, everything still all hinges on an appraisal, and we could be back to square one or just end up giving up. I am not sure how much more we can take. Tired of waiting, tired of stress, tired of worrying, and tired of little to no communication from anyone. Just. Tired. Thanks for letting me vent.

14 REPLIES 14
eileensnow
Frequent Contributor

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

Hang in there! It sounds super stressful, but it also sounds like this appraisal is the end of at least the finance hurdle ...... so since you’ve come this far just take a deep breath and wait it out. It will be worth the stress in the end.
Message 2 of 15
MinAlamo
Contributor

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

Thank you Smiley Happy We are trying to take deep breaths and take it all one step at a time. We're just floored at the length of the process and now I think we have the "appraisal stress" where we just want to know what to expect next and if we can even get this house started. I know no matter what it will all work out, some days are just tougher than others. We will get there!

Message 3 of 15
VALoanMaster
Valued Contributor

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

This is exactly what I try to prepare people for when they come to me for VA, FHA, USDA & conventional construction loans.

Here is an example of what I tell people upfront:

https://ficoforums.myfico.com/t5/Mortgage-Loans/New-VA-Construction-Loan/m-p/5654128#M230198

 

I think it's important to walk people through the pros & cons of these programs as well as the time frames so they can make an informed choice.

If they had told you it would take 4+ months to get you to the closing table upfront, do you think that would have helped reduce your stress?

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 4 of 15
JVille
Valued Contributor

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

The Lender is responsible for providing the Appraiser with copies of contracts, plans & full specs & Cost Estimates. Should include contract with builder as well as purchase contract for the land.
There should be no reason for the Appraiser to contact you or your builder if he has been provided with the info to complete his report.

Have you checked with the Lender?
Message 5 of 15
MinAlamo
Contributor

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

Thanks, everyone. Yes, if I knew it would take 4+ months I think we would have been better prepared. This is 4 months not counting the actual construction phase which hasn't even started yet. We are going conventional and it's not all been the fault of the bank. The landowner decided to hire his own choice of company to install the new well pump and they took forever to get it done. It's an accumulation of hold-ups for various reasons that have just piled on, to be honest.

 

@Jville I agree. I read all over the place that the bank should ask for specs and plans, but our LO has never asked to see a thing. It seems to me she's relying on the appraisal first to come through, and then they'll get into the details with us once that happens. At least, that's my observation. The appraiser is contacting the builder directly rather than going through the bank (?) Maybe that's just the way they do things out here. Who knows.

 

I did find out this morning that the appraiser DID call our builder on Friday to ask for plans and no one got back to him/her. Needless to say, I was not happy about that, so the builder is contacting my LO today to work together to get the appraiser what they need. Keep us in your thoughts and prayers that everything comes through OK. Taking deep breaths as we go... 

Message 6 of 15
Dynversmom
Established Member

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

Starting this process as we speak and I’m a nervous wreck because I don’t know what to expect but I am trying to mentally prepared myself for all the up and downs, highs and lows that I know I will experience going thru this process. Good Luck to you please keep us posted
Message 7 of 15
JVille
Valued Contributor

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

The Lender has the job of gathering of ALL details of the complete package to provide the Appraiser. I’m afraid you are dealing with a LO or Lender who is inexperienced at construction lending. The info needed for the Appraiser is critical in order for the Appraiser to have a full picture of the scope, costs and quality of the home plus the details in regards to the land which has nothing to do with the contract to build the house.
Message 8 of 15
MinAlamo
Contributor

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

@Dynversmom

 

Message 9 of 15
eileensnow
Frequent Contributor

Re: Frustrated, Stressed, and Extremely Overwhelmed (just need to vent)

We are also seeking a conventional construction loan in about January. We own the land outright, and are working with the architect now, and then the builder to get the details together for the application. The builder has a local banker he has had clients use frequently, so they seem to understand each others’ processes.

I’ll be stressed out for four months I’m sure. 😳
Message 10 of 15
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