Refinance with Bank of America taking F-O-R-E-V-E-R

wickedgraceJuly 14, 2010

We started the process for our refinance April 25th and still have not closed. Our credit score is excellent (over 800), we are refinancing the balance of our mortgage + $20,000 which is less than a third of our house value and the appraisal has been completed months ago, and have turned in all documents requested within the 1st week of process. We keep hearing things like "backed up", "technical problems" or not hearing anything at all. We have all of our accounts at Bank of America and have had them there for over 20 years. This just seems excessively long!!! Has anyone else had this problem?

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Hi Wickedgrace,

Has anyone else had this problem?

Unfortunately... yep, I have (and I'm the guy trying to run the show from the INside.)

I suspect that you are being shielded from a series of chain administrative clusterflops, re-do's, and start-all-overs.... Its absolutely no fun in the mortgage world, at present.

Take a deep breath.... and SMILE! Interest rates have DROPPED since April, so whenever you pull the trigger on your lock you ought to be rewarded!

Dave Donhoff
Leverage Planner

    Bookmark   July 15, 2010 at 6:19PM
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I'd take my business elsewhere. I've closed on 3 housed in the last 6 months and they were all done online and were closed within 30 days

    Bookmark   July 19, 2010 at 5:13PM
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I work at a federal charter bank and can do loans in all 50 states. Right now could get you a loan in the 4-4.5% range depending on a few other factors

BofA is taking forever right now but many others are not



    Bookmark   July 21, 2010 at 4:52PM
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I'm not a fan of the giant, monster, mega-banks, but as Dave pointed out..... they did you a favor this time. After being stuck in a pretty narrow range for an extended period of time, mortgage rates have finally followed the downward trend of other interest rates. You will end up saving tens of thousands of dollars if you lock in soon.

Of course, if BOA can't get their act together, there are tons of other people who will lend 800+ FICO people money.

    Bookmark   July 23, 2010 at 10:00AM
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At least talk to some other banks. Last Oct I applied for a HELOC with Wachovia and got this answer and that answer and by early Jan they wanted my documents again and to run my credit score again because it had been so long...all their doing! Granted, this was while they were being taken over by Wells Fargo.

Coincidentally, I was updating my homeowners insurance with my insurance company (USAA) when they did their "while hanging up sales pitch" of "are you interested in home improvements?" Well, as a matter of fact yes I am, tell me more. I was approved within 48 hours and just had to wait out a mandatory 14 day (IIRC) waiting period to get the credit line. And approved for twice as much.

Not a true apples to apples comparison, but it does illustrate that it really can vary from bank to bank.

    Bookmark   July 27, 2010 at 12:37AM
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When I purchased my house last year, the whole process took about 5 months to close. The banks were moving very slowly and I assume they are still doing so today.

You should set a personal deadline (maybe August 31st). If they cannot close by August 31st, which is more than reasonable, you should then be ready to go to another lender and refinance.

Even well qualified people like you are having a tough time now adays.

    Bookmark   July 27, 2010 at 9:35PM
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It has taken well over a year with BOFA and I'm afraid we will not close anytime soon. We also have good credit and a good history with BOFA. Sounds like it is time to go elsewhere. Thanks for posting your experiences!

    Bookmark   March 4, 2011 at 12:27AM
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I've had accounts with BOA since I was 15. I'm almost 29 and getting ready to close my checking and savings with them. I just did a refi and got rates from a big mortgage co. in STL and my local credit union who I've had three car loans with. I ended up doing the refi with my credit union. The other mortgage company flipped and warned me how strict local credit unions are and how my house wouldn't appraise... Long story short, house appraised for $30k higher than we thought and the credit union was a breeze to work with. They barely asked any questions and we got a great low fixed rate. I didn't even consider asking BOA. I'm done with the big wigs...

    Bookmark   January 25, 2015 at 5:57PM
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