Someone was watching over us....today we FINALLY got our final approval! Here's how it went down:
The lender and the realtors sent the comparables (some from other towns) to the underwriter. Turns out, that underwriter just happened to be on vacation today. This substitute underwriter looked over our file saw no problems and signed off right away. What are the odds??
So we can finally relax. We were told around 1:00 this afternoon that we would probably need a miracle for this deal to work out. Well, we got it. Close date April 6th. I don't think anything else can really go wrong at this point...
Thursday, March 19, 2009
Tuesday, March 17, 2009
House on Hold...
Well, we heard back from the underwriter. They decided that we were overpaying for the house based on comparables (even though the house appraised at purchase price) by almost about $8,000. The thing about comparables...there are very few. Because we purchased in a small town (pop. 1000), only a handful of houses sell per year in the whole town, and the price on the home can range from $40,000-$800,000. Soooo, finding one similar to ours is difficult...maybe 1 per year. So based on what the underwriter did have, they had to deny the loan.
So here's the next step: Our realtor, the seller's realtor, and the bank have been working to find other comparables that justify our purchase price. The underwriter has agreed to look at comparables from other area small towns since Springville is quite limited. They are supposed to make another decision by Friday.
If that doesn't work, the only other option is to renegotiate the purchase price, which is highly unlikely. The seller's are already in some financial trouble, and really could not afford to accept less than the current purchase price. It is more likely that they will put the home back on the market and wait until someone comes around that is paying cash or has a conventional loan. It's just this FHA thing that is so picky for us.
So that's where we stand. We've kind of discussed our backup plans, which include renewing our lease month to month and picking up the pieces and starting the house search again right away, or waiting 6 months and buying a car instead. Luckily we haven't given notice to vacate here yet!
Not sure if anyone is actually reading this or keeping up, but I will continue to post updates here when we get them!
So here's the next step: Our realtor, the seller's realtor, and the bank have been working to find other comparables that justify our purchase price. The underwriter has agreed to look at comparables from other area small towns since Springville is quite limited. They are supposed to make another decision by Friday.
If that doesn't work, the only other option is to renegotiate the purchase price, which is highly unlikely. The seller's are already in some financial trouble, and really could not afford to accept less than the current purchase price. It is more likely that they will put the home back on the market and wait until someone comes around that is paying cash or has a conventional loan. It's just this FHA thing that is so picky for us.
So that's where we stand. We've kind of discussed our backup plans, which include renewing our lease month to month and picking up the pieces and starting the house search again right away, or waiting 6 months and buying a car instead. Luckily we haven't given notice to vacate here yet!
Not sure if anyone is actually reading this or keeping up, but I will continue to post updates here when we get them!
Monday, March 9, 2009
Appraisal!
Great News! The house appraised at purchase price! FHA also did not find anything that needed to be fixed. So now its starting to actually feel like we are going to have a house soon! At the end of this week and this weekend we can start shopping for house-things. Here's some things we are going to need:
1. Lawnmower
2. 2 Barstools
3. Laz-E-Boy Recliner
4. Twin Mattress
5. Bookshelf
6. Weed Whacker
The next step is the underwriter. Our file is getting overnighted and we should hear back in 5-7 days. We've made it through the hardest part, though!
1. Lawnmower
2. 2 Barstools
3. Laz-E-Boy Recliner
4. Twin Mattress
5. Bookshelf
6. Weed Whacker
The next step is the underwriter. Our file is getting overnighted and we should hear back in 5-7 days. We've made it through the hardest part, though!
Thursday, March 5, 2009
Changing things up...
I really wanted to keep this a professional blog, but as you can see, 4 months later, its not working for me. It's not that I don't have great insights to share, I just don't seem to have the discipline to keep up a professional blog. So I think I'll talk about other things like...
WE BOUGHT A HOUSE!
It's been kind of a long process. We were pre-qualified back in January, and started the home search right away. The first house we looked at, we really liked. However, it was in the city and would require me to drive on the 380 death trap everyday. The upper level of the house was the master bedroom, and we weren't sure if that was really conducive for raising babies someday. Otherwise, the house was great and had everything we wanted in a first home. I just had this gut feeling that it wasn't the right house. It's the same feeling I had when I was offered a great full time job that paid well but I turned it down. The next day, I was hired at Kirkwood. So, I had a feeling there was something better for us. Plus, who really buys the first house they look at?
So we went house-shopping two more times, looking around Marion. We really didn't find anything that wouldn't require thousands of dollars of work. The last night, we went out to Springville, a small town outside of Marion with a pop. of 1000. There, we found a house we LOVED. It was totally redone on the inside, had 3 bedrooms on the same level, a finished basement with a sports bar, all appliances included, a fenced in backyard, and an oversized garage with a workstation. Its certainly no mansion, and its an older home, but its the perfect size for us, AND its in a small town. I'll be much more comfortable outside of CR.
We discussed our options, and after a roller coaster ride of "to buy or not to buy," we finally decided to put in an offer. Unfortunately, so did someone else. We had to put in a near full price offer, and after some negotiations about possession and concessions, we FINALLY signed a purchase contract.
The next step was inspections. Overall, the inspections showed the house was in great condition. There are a few electrical issues, which are being fixed by the seller. There was also elevated levels of Radon in the basement, but a mitigation system has been put in.
Now we are waiting on appraisal. Because our offer was high, the house could easily not appraise...then its back to start. We should find out by Friday.
I know I've made it sound like this was a painless process so far, but that wasn't really the case. The seller's realtor hasn't been the easiest to work with, and there was some issues with the seller at first. I guess they are selling the house to avoid foreclosure, so they don't have much money right now. They are taking out loans just to sell the home. That's why we're a bit nervous that if the house doesn't appraise, they won't be willing to renegotiate, especially after the work they've just put in with the electrical.
Close date is April 6th. We haven't started packing or given our notice yet just in case. I'll post pics as soon as I can!
WE BOUGHT A HOUSE!
It's been kind of a long process. We were pre-qualified back in January, and started the home search right away. The first house we looked at, we really liked. However, it was in the city and would require me to drive on the 380 death trap everyday. The upper level of the house was the master bedroom, and we weren't sure if that was really conducive for raising babies someday. Otherwise, the house was great and had everything we wanted in a first home. I just had this gut feeling that it wasn't the right house. It's the same feeling I had when I was offered a great full time job that paid well but I turned it down. The next day, I was hired at Kirkwood. So, I had a feeling there was something better for us. Plus, who really buys the first house they look at?
So we went house-shopping two more times, looking around Marion. We really didn't find anything that wouldn't require thousands of dollars of work. The last night, we went out to Springville, a small town outside of Marion with a pop. of 1000. There, we found a house we LOVED. It was totally redone on the inside, had 3 bedrooms on the same level, a finished basement with a sports bar, all appliances included, a fenced in backyard, and an oversized garage with a workstation. Its certainly no mansion, and its an older home, but its the perfect size for us, AND its in a small town. I'll be much more comfortable outside of CR.
We discussed our options, and after a roller coaster ride of "to buy or not to buy," we finally decided to put in an offer. Unfortunately, so did someone else. We had to put in a near full price offer, and after some negotiations about possession and concessions, we FINALLY signed a purchase contract.
The next step was inspections. Overall, the inspections showed the house was in great condition. There are a few electrical issues, which are being fixed by the seller. There was also elevated levels of Radon in the basement, but a mitigation system has been put in.
Now we are waiting on appraisal. Because our offer was high, the house could easily not appraise...then its back to start. We should find out by Friday.
I know I've made it sound like this was a painless process so far, but that wasn't really the case. The seller's realtor hasn't been the easiest to work with, and there was some issues with the seller at first. I guess they are selling the house to avoid foreclosure, so they don't have much money right now. They are taking out loans just to sell the home. That's why we're a bit nervous that if the house doesn't appraise, they won't be willing to renegotiate, especially after the work they've just put in with the electrical.
Close date is April 6th. We haven't started packing or given our notice yet just in case. I'll post pics as soon as I can!
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