Tuesday, January 12, 2010

Mortgage Approval and Costs

The mortgage approval proess has changed drastically over the last 2 years. The amount of documentation and verification needed is really strict. The whole approval process takes longer now too.

We have been formally approved since Friday, but not without some hiccups. My husband and I both have individual credit scores over 800 - and even with that, we were put under the microscope and still have plenty of documentation to provide at our time of closing, such as bank statements from now until then, paystubs from now until then, etc.

Here's one of the biggest problems we ran into with our loan. We applied for a conventional loan and were denied during the full approval process because my husband has no credit! Remember, his score is over 800 - but here's the catch, all of our "credit" is in my name. That was done for no other reason other than I'm the one who takes charge and does all of the buying, spending, and budgeting for us. He doesn't take the lead on this and it's not important to him. So...we are now getting a FHA loan. Confused on how we could be a homeowner and get an FHA loan, so were we! Our loan officer explained that anyone can get a FHA loan - regardless if it's your 1st time getting a home loan or 5th time. The criteria for an FHA loan is that you can put less down more easily compared to a conventional loan and the approval criteria is not as stringent. There is an additional cost to us by doing and FHA - a second mortgage insurance is required and has to be paid upfront by being rolled into the mortgage. After all is said and done, our net difference in our mortgage payment rose by $12 a month. This was acceptable to me. And we can drop the mortgage insurance once our home reaches a higher level of equity.

Our loan officer with NVR has been fantastic. He's very attentive and has stressed to us that we are free to call him any time. He gave us his cell phone number and I can tell you from experience, I had to call him on a Sunday evening - and he answered. Our experience with NVR up to this point has been phenomenal.

I truly can not say enough about our sales agent with Ryan. She has come through with all of the requests with honest and open answers. I've truly made her work for her commission, but it's only because I am a very detail orientated person. She also has shown a genuine interest in how the process is going with our current home's transaction too.

Ryan has just raised it's prices on many of it's models, including our's. This includes price increases to options and upgrades. This will not affect us because we're already under contract. Here's an example, those floodlights we added for $200, they're now $250.

Stay tuned....

1 comment:

JEllis JulieBean430@AOL.COM said...

Why do they have this meeting after your marketing and sales meeting? I want to know how much I am approved for so I know how much I can spend :)