A Realtors Testimony Detailing Her Personal Home Loan Process in Senita Maricopa
Karen Sells Arizona: First-hand account as a first time home buyer
Part IV
Now I can completely understand why my clients freak out during the loan process. I have often heard from clients that they feel like their personal lives are being exposed and defensively say that their finances are being put under attack. They have complained that their lender has lost paperwork that they already sent and I clearly remember the moment when one of my clients said with exasperation, "Karen, I feel like I am going through the Spanish inquisition!" I'm not going to lie, at that time, I kind of thought there was some exaggeration, but now I can see that maybe they were onto something. What I have learned through the loan process is that getting a loan is stressful! Understandably, the lender wants to make sure they are making low-risk loans, and we are in the current housing mess because of shaky loans, but at times it does feel a bit much. The worst part of the whole process, especially in my case is the time crunch. I got a Freddie Mac foreclosed home (before I forget, I loved Freddie Mac through this process. They did everything I asked and more). You have a close of escrow date that must be abided by or else you run the risk of paying fines daily or face cancellation. You may not hear from your lender for days and then all of a sudden you need all this paperwork in less than 48 hours. You begin to dread phone calls from your lender because you know they are going to ask you for another piece of paperwork or write another letter of explanation.
My case is unique. I am completely relying on my parents' income to get a loan. I traveled overseas for the majority of 2010 and just started off my real estate career in November 2010 and of course needed to figure out this industry so didn't make any deals my first two months. I guess my lending company even had a board meeting to discuss my case focusing on the fact that I would be the primary occupant and my parents would be my silent savior if need be. My lender said in all his years they never had a board meeting in the preliminary stages for a situation such as mine. He also said he has never had three files, my mom, dad and mine with such clean credit histories for the last 10 years. Not one of us had any red flags, ever, not once in a decade (thanks Mommy for drilling that in). I wrote a letter explaining my track record in real estate up until now (pretty good for a newbie I might add) and my lender was given the green light.
I do feel like I understand what my clients go through when getting a loan. However, I also can let them know it will likely work out in the end and be well worth it. Because in the end you have a new house! Such a great prize for all that hard work :)
MY ESCROW TIMELINE:
May 6th-Lender needs copies of driver's license, social security card/passport, last 2 month bank statements (all pages), last 2 years federal tax returns, copy of last 2 years W2's, and copy of last 30 days pay stubs.
May ? -signed the application documents.
June 5th-Lender needs to know how many completed years of schooling for all parties, proof of my income with Top Five Real Estate Group, recent mortgage coupons for parents, a letter stating that my parent's house is not part of an HOA, signed US Patriot Act form, one month of recent pay stubs from parents, name and addresses of employers, pension letters, proof of cancelled earnest money deposit check through bank account, my 2008 and 2009 tax returns.
June 23rd -appraisal received
June 28th - Need more paperwork! What? We are supposed to close in 3 days. This was my freak out moment. I had been emailing my lender with no response for a couple of weeks. Why no answer? On vacation. Oh, and the company is understaffed. Great!
Lender needs anti steering paper (we already signed this in the beginning but it's missing), a couple of my real estate license, June mortgage statement is missing, letter of explanation why my parents are helping me, updated pay stubs for everyone, updated pension statement and Hazard agent contact information
June 29th - My birthday. Oh, and a 2 week extension with no per diem, phew! The bank addendums say $100/calendar day could be charged if file doesn't close on July 1st.
July 1st-close of escrow
July 7th - in underwriting
July 7th- I drive by the property and note that the Mesquite tree in the front yard is completely dead and the sages are soon to follow. The automatic watering system has been off for months. I call the listing agent and a landscaper is supposed to be tending to the landscaping once a week. Wow, that was obviously not happening. Listing agent said he would take care of it. Oh, and the other full grown mesquite has fallen down from that crazy dust storm.
July 8th-conditions: Need a note from parent's bank if they are paying interest only on their loan or if it's fully amortized, need November 2010 bank statement (long story), seller must get in writing that they do not need a formal letter stating who the primary occupant will be, HOA document needs a $ amount, homeowners insurance is fine (not really though), mom and dad must send an email stating they received the appraisal.
July 11th-every document is on underwriter's desk Monday morning for final approval
July 12th- lender tells me that American Family Insurance doesn't know about my new house. I thought my lender and parents were dealing with this. I have to call and get immediate approval with signatures. Thank goodness for scanners.
July 14th-title docs are signed by my parents and me. We rush to get a cashier's check for closing costs. Done!
July 15th-new close of escrow
July 15th- Seller needs to sign HUD-1
July 16th- I drive by my future house and see that a new mesquite tree is planted and that the other mesquite tree is now upright.
July 18th-Seller returns HUD-1 signed to the lender so that lender can fund.
My locked in interest rate is a problem. Today is the deadline from a funding aspect. We have until noon to fund with the lending company. I get a call at 12:15pm from the lender saying they can't get a hold of my parents' employers for employment confirmation. I contact my parents to make sure HR answers their phones. 12:30 they receive confirmation. We are now funded.
July 18th- Recordation! I am now a new home owner.
July 22nd-new close of escrow
My New Home!!!
SOLD
For more MLS listings go to http://www.homesforsaleinmaricopa.com or
click on HOME BARGAIN PLANET
Bank owned or HUD homes click here
Pool homes click here
OPEN HOUSE ALERT!!!
A daily open house is being held at this house located at 22359 Gibson Dr. in Cobblestone Farms (first subdivision on the left coming from I-10) until this house is sold. Usually a realtor is here Monday through Sunday 11am-5pm. Come and stop by to see this gorgeous house or to gain access to all the houses currently on the market.
Karen Montgomery ~ Karen Sells Arizona
Useful Maricopa websites
Information regarding elementary, middle, and high schools- http://www.maricopausd.org/
Pinal County information- http://pinalcountyaz.gov/Pages/Home.aspx
Golf Courses- The Duke at Rancho El Dorado http://www.thedukegolf.com
Ak-Chin Southern Dunes Golf Club http://www.golfsoutherndunes.com
Maricopa's Newspaper- http://www.copanews.com
Harrah's Ak-Chin Casino- http://www.harrahsakchin.com
