Mortgage problems... advice needed?

My fiance and I are in the process of purchasing a house that we got under contract before construction had began on it. This was around January 2007. The house has been complete since May 15 and all of a sudden the lender that our mortage company was working with to get our loan, decided not to do business in Louisiana anymore. Now we have to basically start all over with another lender who is now asking for additional information, drawing out the process even more. This is getting very frustrating and my fiance is thinking about switching to another mortage company. How much longer do you think it would take? We were hoping to have been moved in by now. Any advice? The company we are working with is small and the originator is a family member, which complicates things even more.Mortgage problems... advice needed?
I'm sorry your going through this mess. I can imagine how anxious you and your fiance are in wanting to settle into your new home.


The loan process can be exhausting due to all the questions and documentation they require. Patience will be needed.


If you elect to hirer another lender it would only slow down the process more. Worst than that...it could effect your credit scores. Every time you apply for a loan the mortgage company will run your credit reports. This action will reduce your credit score. It is vital not to open any new credit cards or add any debit to current credit cards. The most common mistake new homeowner's make is purchasing furniture prior to closing on their new home. This act can destroy some people's loans.


I would direct all your questions to the loan processor. Ask two key questions:


1.When will your file be submitted to underwriting.


2.Once the underwriter receives your file how long will it take them to give you loan commitment.


Loan commitment means you'll be to close and get moved in.


Good Luck!Mortgage problems... advice needed?
Hope you made some progress towards getting moved into your new home. Much Success!

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Something big happened in mortgages this spring. The sub-prime market collapsed. That's the group of lenders vital to first time homebuyers and buyers in expensive markets. People last year who had the pick of loans they wanted now can't get approved for any.





It shouldn't take more than a month for a loan, from application, through appraisal, to approval and settlement. Can you use a credit union? They're often the best. Can you use Navy Federal or USAA? They're lightening fast if you've got good credit.





What does your builder think of this? Do they have a lender? Usually, there's a contractual stipulation that you must be ready to settle upon completion.





Have you tried LendingTree.com?





Be oh so careful with countrywide. They offered us a mortgage that looked good until I saw that in one year, our payments would skyrocket to encompass our entire income. They clearly wanted to take our house.
A realtor in my office had a buyer with a similar situation and she found a new lender who got it done and closed in 5 days. It all depends on the lender. DON'T go with a big online company like Lending Tree or Ditech. You need a local company where you can go into their office and hand them the papers they need, call the person directly anytime, and get a quick response. A direct lender is preferable to a mortgage broker for getting it done quickly but then you might not get the best rate or loan program available.





I'd say dump 'em and get someone new but since it's a family member you're right, it's complicated.





Good luck!
If you can get your mortgage package from the original mortgage company...which you should...you should be able to close in a couple of weeks. I would try Washington Mutual or Contrywide. They are fairly efficient. The builder isnt going to back out of the deal if they have to wait a few weeks. Not in this market anyway. If you had a bona fide committment from the first lender and the loan costs you more or if you are forced to pay carrying costs by the seller, you should consider suing the original lender. Dont worry about the originator. This is a major investment for you. They should be more worried about you. That's their job. Family or not.
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Go to a reputable bank in the area, never a good idea to mix friends/family with personal financial matters. A large bank will (should) be able to get things moving for you quickly. I would recommend that if the loan has been started by another company that you obtain the name of the appraiser and title company...this work shouldn't be lost and you shouldn't have to pay for it twice. Take the information with you to the new lender and they should be able to contact those companies and get copies of what has already been done in an effort to get your loan closed quickly.