waiting to hear yay or nay for refi

suz1023January 13, 2011

the waiting is the hardest part, for sure.

i just don't get what the hold up is.

my credit score is less than it was last spring when i started the process--i'm told because we paid off a credit card and thus have more credit to spend now.

i make enough money, have plenty of equity, etc.

i have resubmitted a few forms twice, and was told i'd have my answer today. but it's evening and no word. i guess the snow has had an effect, so hopefully i'll hear tomorrow.

if this goes through, i have a locked in rate of 3.87 for thirty years.

i'm wondering if the bank is looking for a reason not to fulfill the loan at that rate. is that nutty thinking or what?!

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graywings123

Wow!! Who is offering that rate?

    Bookmark   January 14, 2011 at 9:20AM
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Billl

Wow, you must have timed the bottom of the rate market perfectly.

I think you are overestimating a bank's capabilities if you think the approval processes is in tune with someone watching current interest rates. They are definitely not that organized. Any holdups are the result of overworked paper-pushers. They don't know you, or your rate, or your situation. They are just checking off boxes on a form.

    Bookmark   January 14, 2011 at 12:44PM
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suz1023

still no word.
the loan officer tells me it's the nature of my work which is the holdup, though that seems odd.
i work with special needs people and am a contractor with the agency. she says the worry is job stability--well duh, isn't that everyone's worry these days?
at least i have a yearly contract, which is much less than most people have i think.
i get that they are overwhelmed with refi apps, but this should be a slam dunk with my income and equity ratio.
my bank was just bought by peoples bank, so they are new to me.

    Bookmark   January 14, 2011 at 1:29PM
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gammyt

"i have a locked in rate of 3.87 for thirty years"

Since last spring? Do your original papers say the lock in lasts forever? I doubt it but if so, I would really question the reputation of the company promising this dream loan based on last spring

    Bookmark   January 14, 2011 at 5:46PM
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suz1023

last week she said i'd get an extension on the close date because of a hold up on their end.
we were supposed to close on january 9th, which was sunday.
my loan officer hasn't said a word about it since-mankes me wonder if she mucked up.

    Bookmark   January 14, 2011 at 6:07PM
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gammyt

Before you sign anything make sure you get in writing what the intrest will be and the terms of the loan.

Spend $300.00 to have a real estate attorney read the papers and go to closing with you.

3.87 today is an Adjustable Rate, not fixed.

What company let you lock in at 3.87 on a fixed last spring and says the lock is still valid?

    Bookmark   January 14, 2011 at 7:02PM
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suz1023

let me clarify---
i started looking into the refi last year and in nov. chose my local bank who offered me the fixed rate of 3.87 for thirty years. we had sixty days to close, bringing us to jan 9--which was a sunday.
i called ten days before to ask if the closing would be on monday and was told they needed a few more documents, they were missing a page here and there.
and was told by my loan officer that because it was their problem, i was being given an extension.
no mention of that since then.
was told monday that yesterday the underwriters would finish looking at it all. they were dbl checking my income because i am a contract worker--self employed.
they will not count my rent income, since i barter hours of labor for it. nor my repsite budget since they appear to not understand the concept--despite my offering to have my agency fax them an explanation, specifying that the respite is income to me.
i'm wondering what the story is with the extension too, seems odd she hasn't mentioned it again--though the deadline was jan. 9th, so why is she still working on it?
no call back this afternoon, so i have to wait until tuesday.
i wonder if i'm being played by my local bank!!(though recently bought by peoples bank, a few months before i went to them for my refi).

    Bookmark   January 14, 2011 at 7:17PM
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colorcrazy

Fallingwaters, it sounds as if your income sources are unusual enough that it makes the loan processer and underwriter nervous. In your shoes, I would proceed with obtaining any documents which explain your respite, etc. to be on the safe side. Otherwise, if they decide a week from now to ask for those documents, you will have lost more time and the "lock" could run out.

I agree with the recommendation to have an attorney read the loan papers. I did, and it was $$ well spent. Wells Fargo had buried into the contract a para that said if they were late in processing my payment, I would have to pay interest, even if I sent the payment on time! My lawyer got this paragraph removed, at my request.

    Bookmark   January 15, 2011 at 3:07PM
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suz1023

that's a very good idea, i'll get that document from the agency tuesday morning.
here's where it was left yesterday afteernoon.
loan officer tells me the real problem is my debt to income ratio. underwriters require 45%. mine is 46%.
so i get bil (banker in another state) on one cell, loan officer on the other. he suggests simply borrowing less money. duh, whay didn't she think of that?!
so she said she'd call the underwrighters back and hung up. she had earlier told me she'd be in meetings for the rest of the day, this was ten minutes before the meetings were to start.

i think the underwrighters are looking for a reason to decline my application--after all at 3.87% they're not going to be makeing a lot on this loan.

or, since she first said they were having problems with my type of income, and later it was because of the ratio difference, and she promptly offered me a heloc at a much higher rate, if there is some bait and switch thinking going on.
i hate to think that, she's such a lovely person, blah,blahblah, but still...

so i'll charge back into the fray on tuesday, and maybe evn call the banking commission on tuesday to see what my rights are in this case.
i'm not going to let that 3.87 go without a fight!!
i guess i'd better get a ref for a kick-ass real estate attorney too--my guy may not be right for this.

    Bookmark   January 15, 2011 at 3:33PM
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pamghatten

fallingwaters ... underwriters really don't pay attention to what interest rate people are applying for. There are too many others things they need to be concerned with. And the underwriter makes their salary whether or not they approve or decline your loan, their pay is certainly not tied to your interest rate.

Most underwriters are just trying to get their job done and don't have any idea how much money their lending institution makes on a loan, or cares for that matter.

Your employment is different than a normal salaried borrower, or even a "normal" self-employed borrower. So they need to make sure they understand how your income is calculated.

    Bookmark   March 2, 2011 at 1:25PM
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