Short mortgage vent
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| Sat, 06-25-2005 - 5:23pm |
We are buying our first home - supposed to close in 2 weeks. Our mortage was approved 5 weeks ago, and we would be putting down $44K, while the bank was going to do a home equity for another $44K to equal 20% of the price of the house ($440K). Last night (Friday night, 8pm!) the mortgage processor from the bank called to tell me that, oh by the way, we need to either put down 20% of the purchase price of the house ($88K) or contribute 5% out of our own funds ($22K). Apparently the original 10% from us/10% from HELOC would only be OK if $22K of our down payment came from us - but did anyone tell us that 5 weeks ago when we provided copies of all our assets??! NOOOOOOOO!
We are buying the house with a $100K gift from my parents. If we have to put down $88K out of that, we will not even have enough left over to close and pay the taxes (let alone the lawyer!). Apparently we're still approved for the HELOC, but now we won't actually get the money until 30 days after we close on the house, which puts us to mid-August.
Not only am I not sure that we have enough money to close, I'm not even sure we're going to be left with enough money to LIVE for the next 8 weeks. And dontcha think they could have told me this 5 weeks ago? I mean, where are people supposed to come up with an extra $44K? Do they think we have $44K just sitting around in a piggy bank?
Sheesh!
Kelly

Dang, Kelly-this is a bummer! It really doesn't seem right that they sprung this on you.
It's been awhile since we bought our house, so I don't remember all the hoo-hah involved (well, except having to sign form after form after form, lol), and our situation was different too. When is your closing date? Can the lawyer wait to be paid until after the HELOC comes in?
here's hoping that the situation works its way out for the good of everyone!
Lisa
Thanks, Lisa. I figured out last night that all would probably be OK. The mortgage processor called today to tell me we can close on the HELOC the day after we close on the mortgage, so I think all will be well. It still burns me up that no one told me when I applied that my choice was to either put down 20% or contribute 5% of my own, non-gift funds!
Kelly
I live in the New York suburbs, where $440K for a 4BR/2BA, 2500sf house on an acre of land is more than reasonably priced. We are getting a break on the price because we have been renting it from the owners for years. My friend put a bid for $579K on a 4BR raised ranch that was built in the 1960s and has had NO updates, and he was outbid by someone willing to pay $639K (and they will have to put another $50K of work into it). Which is just NUTS!
It's actually becoming quite a problem for young people in the NY metro area. They simply can't save up enough money for the down payment for a house unless someone gives them an enormous amount of money as a gift or through an inheritance. There are always stories in the newspaper about people who find themselves in their 30s, with good jobs and salaries of $80-150K, simply frozen out of the housing market here in the northeast.
Kelly