**Warning - this blog is not funny nor is it exciting - but it will bring you fully up-to-date**
From the beginning of this house hunt I have tried my hardest to not say tooooo much about finding a place or not because I didn't want to jynx myself or get my hopes up. Well once this offer went through on the condo I couldn't help it! It was/is so exciting. I thought for sure the hardest part was over -- all we would have left to do was show up at closing and sign some papers (actually... I didn't even know we showed up, I thought once we signed the contract after the offer was accepted that was all.... oh the things you learn!)
It is amazing to me how many things have to get done all in a matter of a month before closing. Setting up the inspection was the first thing. Derrick wanted to go through with the inspector which was nice for him to be able to hear the guy really scope out everything. Everything came back ready for move in with some minor suggestions. One suggestion being the water heater - although it was okay currently we still wanted to get this fixed because that is just not something to mess around with (whoever installed it did not know what they were doing and didn't put in a drip pan nor did they umm... I forget the techincal term but the vents were not lined up.)
We came to an agreement with the sellers and so that will be dealt with once closing occurs.
We then met with our loan officer to sign all of the bazillion papers that I didn't understand and still don't understand. That all went well although Derrick said I had a look of shock on my face the whole time -- apparently the thought of agreeing to all of gives me a couple shakes in the knees - not because it's with Derrick but just because... this is BIG.
Then... it happened. Our loan officer was setting up the appraisal and we get the phone call (I was in a math course and couldn't pick up so I emailed back). We were planning on using an FHA loan -- a first time home buyers loan that does not require as much to be put down and you get a lower interest rate. Well an FHA loan has to be approved by the government and although most if not all houses are approved, condos are a different story. There can only be so many renters, only so many FHA loans, blah blah blah. Well, ours from the beginning said it was so we thought we are good to go! WRONG!
The condo place USED to be FHA approced but last year a retaining wall was knocked down from excess rain and they are now doing assessments on the places to fix it. Any time there is assessments on a condo place (whether it is $1 or $1,000) it is NOT approved. The reason for the strictness is they do not foreclosure - obviously. With assessments, being that they are unplanned but required parts of a mortgage, it increases the chances of foreclosure. Until the assessments are done, FHA will not be approved. Well SH*T! NOW WHAT!!?
We have a couple options:
1. The sellers have a current FHA loan. Although we cannot apply for a NEW FHA loan we can assume an old one. The other aspect of an FHA loan is that it is assumable - a buyer can assume the current loan for the current interest rate. Unfortunately for us the sellers interest rate is a 1/4 percent higher than what we were at, but it is equal if not less than the interest rate we would get with a conventional loan. If we can assume their loan (there are legalities of it) we will more than likely do that.
2. Bring more money to closing and do a 95/5 loan. This is our second option and it is just a normal loan. You know the deal.
So... that is where we stand currently. Our realtor and loan officers (yes we now have 2 because we are debating on keeping our old one who is slightly at fault for this overlook) both seem optimistic and say closing will remain on Feb 4 (don't know how that is possible but okay I'll go with it).
All I have to say is... this is not fun. It's stressful, annoying, never ending, and when its all said and done if I don't get keys to our place I might blow a gasket. But... if we do get keys then I will happy as a clam:)
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