February 7, 2009

You’re approved. Unless you’re not.

Posted in Everyday, Home at 8:32 am by ListenMaudy

The house is moving along pretty well. We got approved for our loan on Thursday. It turns out that we are only approved with an interest rate of 5.5% or lower. If it’s higher than that, we have to go back to underwriting and be approved again. We’ll buy points to get us down below 5.5%, so that means more money for closing and less money for remodeling. Obviously, we hope that rates go down since we haven’t locked yet. On Friday, we could get down to 5.375% with a point and a half!

Our tentative closing date is February 23. That’s the date that was listed in the seller’s addendum to our offer. It said that if closing is delayed through no fault of the seller, we have to start paying them $100 every day that closing is delayed. What a ridiculous thing to put in there. We signed and returned that addendum within 24 hours. It took them seven days to get it back to us, and they only did that because our agent started bugging their agent. If we’re delayed, there’s no way it won’t be the seller’s fault since that’s all they’ve done this whole time, drag their feet. It’s like they don’t even want our money.

The fact that our mortgage broker is using that date as closing makes me not trust it. Are we waiting on the seller to do their part? It sounds like our lender won’t be able to close before then, so why will they be ready to close on that day? I guess this is the way that sales usually work; the deal is made, and the deadline is communicated to the lender. It seems a little weird, though.

I still feel really nervous. Nothing has gone smoothly. Even with our approval, we were approved, but then the bank has to do an internal review of the appraisal to make sure the house is really worth the appraised value. If it’s not, they un-approve the loan. Nothing is straightforward, so I’m frustrated and nervous that the sale won’t go through in the end.

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