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    Wednesday, January 27, 2021

    Home Unlabelled We just closed! Here is our self-employed, conventional, Covid timeline! 39 days from pre-approval to closing. Real Estate

    We just closed! Here is our self-employed, conventional, Covid timeline! 39 days from pre-approval to closing. Real Estate

    January 27, 2021

    We just closed! Here is our self-employed, conventional, Covid timeline! 39 days from pre-approval to closing. Real Estate

    We just closed! Here is our self-employed, conventional, Covid timeline! 39 days from pre-approval to closing.

    Posted: 26 Jan 2021 01:44 PM PST

    Hello, everyone! This sub has given me so much help over the course of the last month. I figured it might be helpful to someone to see my timeline. If you have any questions, I would be happy to answer them.

    Photo: https://i.imgur.com/fJF3KF9.jpg

    • Our Details 29 years old. Married couple. Self-employed for 8 years with one source of income. $60k per year (growing slightly each year including 2020 somehow.) $5k in auto debt. $0 other debt. We own a 760 sq ft house out in the country worth about $100k that was financed through the seller. This is our first mortgage / "real" house. 770ish credit scores.
    • Property / Mortgage Details Location: Southeast Michigan, House cost: $195,000, Loan type: Conventional 30-year Freddie Mac fixed via local credit union who partners with a mortgage company, Interest rate: 2.75% (.375% in points, or $694.69), Down payment: 5%, $40.14 PMI

    ​

    The Timeline

    12.14 Applied for & received "pre-approval" through Better.com. Was actually a pre-qualification. Realized they're trash. Applied for three other preapprovals.
    12.15 Received two real pre-approvals - one from our local credit union (who we have two auto loans through, and a flex line / have had a personal loan) and one from a local mortgage company. We Also decided on realtor.
    12.16 First day of house searching: viewed 4 houses.
    12.17 Second day of house searching: viewed 3 houses. Submitted offer for asking price on 3rd house. Seller received another offer, so we added $6k appraisal guarantee. Seller verbally accepts our offer, and agrees to sign in the morning.
    12.18 Offer accepted. Seller signs. Inspection ordered.
    12.22 Inspection completed. Appraisal paid. Submitted home insurance quote to lender.
    12.24 Appraisal ordered.
    01.04 Appraisal.
    01.05 Appraisal report received and appraised at value.
    01.06 Loan sent to underwriting. Told it should take about 3 days for initial underwrite.
    01.11 I reach out to Loan Officer & her assistant for an update via phone and e-mail with no response from either.
    01.12 I reach out again. LO responds with no update. I reach out to processor. Processor responds with no update. I prod for more info, my realtor calls and leaves voicemail, and his assistant e-mail LO. Loan gets text-generated "approval" via bank's portal within two hours. LO tells me that processor will be in touch tonight asking for anything she needs. I don't hear from anyone for the rest of the night.
    01.13 I wake up and e-mail both LO and processor. LO sends disclosure and locks in rate. Processor asks for a couple miniscule things - home insurance and tax documents for our small, rural starter home that we own outright. She also asked what our plans are for it, since the new house will be our primary residence. She also wanted to know where our closing funds would be coming from. We get them to her instantly. Closing date is pushed back at least one day, since we didn't realize the original date was a holiday, and we don't have any additional update from processor. Says she hopes to have an update by tomorrow.
    01.14 Still no concrete update, other than the fact we definitely won't be able to close by tomorrow (only business day before our original closing date.) Processor says she's asked her manager to expedite our 2nd round of underwriting again. Says she hopes to have an update by the end of the day. No update.
    01.15 Woke up to two more conditions - updated bank transactions for 2nd half of December (my personal statement ends in the middle of the month) and a letter of explanation for a credit inquiry while we were comparing mortgage interest rates. Submit an hour later, and receive our Closing Disclosure in another 30 minutes or so. We signed right away. Closing date scheduled for January 22nd (one week away since 3 day waiting period after disclosure and Monday is MLK day.) Disclosure is $4k less than our initial Loan Estimate.
    01.18 Receive Final Disclosure. Closing costs are even $6k less than the last disclosure. 😳Received closing documents from title company. There was a mistake on both, misinterpreting our appraisal guarantee as a seller credit. Asked title company to revise. Title company acknowledged that they caught it after they sent it, and our suspicions were correct as to the explanation. They said they had already sent the revision back to the lender.
    01.19 Woke up to the corrected Final Closing Disclosure. All looks correct now. The 6k discount looked nice, but wasn't correct. Our cash to close is now $6k more, but $5k less than our original loan estimate. Signed immediately.
    01.20 Checked in with Title company about homeowner's insurance policy that is needed for closing. They said the lender will take care of it. I check back with insurance company, and they say they are surprised they haven't heard anything from lender about it, and don't have any details for the policy that they need. I reach out to my Loan Officer and prompt her to call the insurance company. Everything gets sorted by the end of the day, but I will need a new Final CD and Settlement docs tomorrow.
    01.21 I wake up to the Final CD from lender. Sign immediately and forward to Title company who acknowledges receipt and says she will update the settlement docs. My wife transferred over utilities scheduled for tomorrow. She also went to pick up the cashier's check. Received updated settlement docs from Title company, and Loan Officer's assistant informed us that we are "good to go for tomorrow" and told us "Congratulations on reaching the finish line."
    01.22 Final walkthrough on our way to the house. Everything looks exactly the same. We head to the title office to sign papers, and they are ready for us 30 minutes early. Signing is a breeze and not nearly as bad as people make it sound. We drove two separate cars to the final walkthrough full to the brim with our stuff!

    And that's it! Now we own a(nother) house. We have spent every waking moment since driving hours back and forth and moving our stuff. Now we have 85% of our stuff already moved in, and definitely not unpacked.

    This has been THE most anxiety inducing process I've ever encountered, but I do live a spoiled life. I do wish that realtors, and especially banks / loan officers, lenders, and processors were more understanding that not everyone has been through this. No one ever told me I was "conditionally approved" or that I had my "final approval" or that my file was "out of underwriting" or that I was "clear to close." A little bit more upfrontness, better communication, and explanations could've gone a long way.

    I'm fully prepared to never buy a home again. Haha! We plan to rent out our first home to make some extra income, but know nothing about that process. That will be our next feat.

    Thanks again r/RealEstate

    TL;DR Started looking 12/16. Found house 12/17. Offer accepted 12/18. Closed 01/22. Hounded everyone to close quickly. 37 days all together. 35 days from submitting purchase agreement to credit union.

    submitted by /u/poppycockpickle
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    94 showings and 2 offers sight unseen for a fixer upper in SE MI so far...

    Posted: 26 Jan 2021 08:00 AM PST

    So I inherited a house in SE MI. Its a 1500sf ranch with a basement built in 1980. Its clean and the well maintained, but zero updates. Carpet and flooring it clean but totaled. The cabinets are super old. Fromica counter tops. None of the appliances work. I didn't bother painting but I did clean everything out except for a few pieces of furniture to "stage" the house a bit. Its a total grandma house. The only thing going for it is the location. Its in a super nice school district. I thought my realtor was full of it when he said he wanted to get 70 people to see it and expected 10 offers. We listed last weekend and start showings this weekend. I cannot believe the response. 94 showings scheduled so far. And we've received 2 offers from people that haven't even seen the house. Flippers, I guess? I'm now wondering if I under priced it? I'm not concerned about getting the max offer as much as I am finding a buyer that will buy it as is and close as quickly as possible. I would never consider paying the price that we listed at but now I guess we are gonna get well over. Now I'm worried about picking the right offer out of many. And the house becoming a super spreader site. I feel so bad for people desperate for a house. This market it totally decoupled from reality. Utterly bananas.

    submitted by /u/jaguarspots2020
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    Tenant just evicted (Western USA) - notwithstanding CDC COVID moratorium. If eviction is the right move, don't assume the moratorium is a guaranteed no-go.

    Posted: 26 Jan 2021 10:56 AM PST

    I'm an attorney. One of my clients just called to confirm that he evicted a tenant who hadn't paid in 4 months. The constable was at the property with the client and the handyman was just then changing the locks.

    The client had assumed that because of state and federal restrictions on evictions, he couldn't evict. In my jurisdiction, this is not true. Instead, the courts require that certain notices be given to the tenant along with the normal eviction paperwork. The tenant must then take action to notify the court that they qualify for protection under a moratorium order. If the tenant takes no action, they will be evicted (assuming the rest of the eviction is solid of course).

    Moral: You may have a variety of reasons you don't want to evict someone right now - but don't let a moratorium be the one thing stopping you. Chat with an attorney to see if your eviction action is likely to succeed in your jurisdiction - the chances of success may be higher than you think.

    EDIT: As u/GordonAmanda pointed out below, many jurisdictions have rental assistance money out there, if you just look. I personally think taking what steps you can to prevent an eviction and help people stayed housed during this time is the morally right thing to do, so I would encourage you to look at all possible options before eviction. But as I said, don't let eviction moratoriums be "the one thing" that stops you from moving forward with an eviction, if that's the course you need to take.

    submitted by /u/IndyHCKM
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    Zillow won't let me edit home facts or photos even though I have claimed my house

    Posted: 26 Jan 2021 08:20 PM PST

    For some reason all of the photos and facts I updated on my home listing reverted back to how ti was before I claimed the house. It still shows I claimed the house, but when I go to edit the photos or facts it gives an error message that says, "We're sorry, currently home facts and photos can't be directly edited on Zillow for this property. As the data for this home is sourced directly from a third party, it must be edited with them.

    If you are the current homeowner, please contact the agent you worked with to purchase this home and request a change to the data where it is originally sourced. Once edited there, it will be updated on Zillow."

    ​

    What do I do? I don't even think the agent who listed the house even works in real estate anymore, and I don't understand why that would even matter. I should be able to have exclusive access to my own houses listing on Zillow!

    submitted by /u/Bionicler
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    Mass amount of re-listings?

    Posted: 26 Jan 2021 06:38 PM PST

    I was checking in on houses in my metro area (MSP) tonight and noticed that a HUGE number (in our price range, mid-$300-$400k) have been relisted . These were homes that came on the market, had an offer accepted in 3 days, and have been contingent for a few days to a few weeks.

    Did something happen in the housing market today ? Is it something to do with financing ? Looking for a sign that it will be easier to get my offers noticed ... On the flip side, I do feel for the sellers in this situation. Not fun to have deals go through!

    submitted by /u/lorakinn
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    Ghosted by seller’s agent

    Posted: 26 Jan 2021 10:29 PM PST

    For context, this is in SoCal.

    Put in an offer on a property three weeks back and got outbid. However that sale fell through and the property went back on the market last week. Put in higher bid on same property the second time and seller's agent replied saying the buyer had accepted and offer but asked if I would be interested in going on a backup position. This happened on Saturday 1/23.

    Now is where things get irritating and confusing for me. The property is still listed as "active" on the MLS and Realtor.com despite the seller's agent stating the seller accepted an offer. They are also not willing to let me know what position of a backup I would be. Lastly, the agent is not responding to the question of whether or not the sellers are accepting other offers, even after explaining I would like to submit a new bid if they are. So to be on the safe side I have signed the backup contract and agreed to their contingencies, one being that it's a 45 day contract as a backup instead of the usual 30 day.

    The owners are flippers and have at least one more property on the market currently. I know this is a business for them, so I can't understand why they and the agent are not answering my questions. And I certainly don't understand how the listing is still flagged as "active" if they supposedly accepted an offer and have multiple backup offers including me.

    I don't know if this is normal or if they are just being non-communicative assholes or if maybe it's personal? Advice?

    submitted by /u/vagipalooza
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    What are some of your nightmare client stories?

    Posted: 26 Jan 2021 12:31 PM PST

    My fiancé is a realtor and I've had permission to post his experience. He's had these clients (an older couple around mid-50s) since November of 2020. He listed their home and was also asked to be their buyers agent (paperwork all signed and dated).

    The process of selling their home has been an absolute nightmare. They had a radon issue, mold in the attic, a possible encroachment on the property, and multiple other issues on which they've been combative on fixing.

    Beyond that, while their home is still active they wanted to see homes and put offers on them. The market is hot and with their contingency to sell their own home all 5 of their offers on different homes got denied. My fiancé showed them 70 (yes 70 actual homes) within the span of 2 months and the clients have been unrelenting and picky on each and every one. Mind you, these homes are over an hour away from where we live so you can only imagine the amount of miles and money spent on gas.

    Fast forward to January of 2021 and they've finally received an offer on their home at asking price. The only problem is that they need a survey done to ensure there isn't an encroachment on the property and the clients refuse to pay for one.

    But the kicker of the story is this. My fiancé was fed up of showing them homes and denied them one home on the day of our engagement. He said it was an important day for us and until the survey is done and their home moves towards closing then they'd have a great chance of getting accepted.

    They dropped him from being the buyer's agent after the denial of one home. Made him drive countless hours, won't accept a referral so he can at least make some of his money back, and are still being combative about the damn survey.

    The offer is on hold until the survey is done and all I can say is that these are the clients from hell.

    submitted by /u/rouh-i
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    What are the full logistics of buying a quadruplex as a first home to live in, while renting out the remaining units?

    Posted: 27 Jan 2021 02:27 AM PST

    I was considering on buying a quadruple as a first home with my partner. Let's say that our loan qualifies us to a SFR for $645,000. And we want to buy a quadruplex that's selling for $1,000,000. Would my loan amount change if I decide to buy a quadruplex instead? Because the remaining units rent can be used to offset the mortgage? And also, do I get taxed on the rent I collect from the tenants, since that would be used to pay the mortgage? Sorry in advance everyone because I have no idea how this works..

    submitted by /u/jqucla
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    Offer fell through, what happens to earnest money deposit/inspection costs?

    Posted: 26 Jan 2021 12:36 PM PST

    Hi, first time homebuyer here. We put an offer on a house that got accepted, and paid the earnest money deposit already. We also paid for an inspection. The seller is refusing to make any repairs (we have an FHA loan so they need to be done before closing), and apparently there was another offer for 10,000 above ours where the buyers are fine with the seller not making repairs. We can't afford to make all of the repairs on our own before closing, so it looks like this house is not happening for us.

    My question is, will we get our earnest money deposit back in this situation, as well as the inspection costs that we already paid for? Or are we out of luck?

    submitted by /u/hangingdenim
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    Residential RE investors with a mortgage, Escrow question

    Posted: 26 Jan 2021 07:31 PM PST

    What's the book say when refi'ing an investment mortgage as it applies to escrow ie the bank collects the taxes + insurance from me every month vs. personally making those payments myself.

    My lender is charging me $700 less on discount points if I choose to escrow the money. They also will reduce the total loan amount by $2k if I bring $2k in closing to put towards the escrow account.

    So I'm saving a one time of $700 + $2k if I'm looking at it correctly but I lose the ability to make potential investment money on the taxes because I'm paying it monthly vs. annually.

    Any suggestions are appreciated. Thanks!

    submitted by /u/herschelpony
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    Are Buyers Tricking Sellers by Submitting High Wining Offers Only to Negotiate Down After Appraisal? (Denver)

    Posted: 26 Jan 2021 10:47 AM PST

    I'm currently looking to buy a home in Denver which is a really hot market right now. Homes have a median time on the market of 4 days and typically close 1-2% above list price. I have submitted several above-list offers only to be told by the seller that they received a MUCH higher offer.

    From my understanding, it is common in Denver to have an appraisal gap contengency of 5-10k which I have included in my offers as well since my offers were above the list price and above the comps. To me, it doesn't make sense that people would be willing to bid 5-10% ($20K+) or more above listing when the comps don't support the price.

    My question is, what would stop an unethical buyer from submitting an offer on a home for significantly more than the list price in order to win the contract, only to wait for the appraisal to come back somewhere around the original list price (and comps) and then negotiate with the seller to get a price that is closer to the list and only pay a little above listing covering the appraisal gap in cash. At the very least, from the buyer's perspective, if you lose the sale after wining the initial offer, you are at least better off than not having the offer accepted in the first place.

    To me, this is what it looks like is happening based on what homes sold for last month compared to their list price and what the listing agents have said about the offers that are beating mine.

    submitted by /u/Humanosaurus_Rex
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    Baby Agent Needing Advice

    Posted: 26 Jan 2021 09:51 PM PST

    Hi everyone! I'm looking to get some solid advice on where to generate some call lists. My brokerage is newer and we don't have people just calling in because it's a well known company and I need to generate leads but im at a loss for how to generate those leads.

    I'm looking for low cost ways to generate these leads. Im not afraid of cold calling I just need the leads lol

    submitted by /u/KaySprings
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    Seller sold property while under contract

    Posted: 26 Jan 2021 07:32 AM PST

    Hello everyone -looking for some help here:

    I was under an Agreement of Sale for a home until 1/31. Closing was supposed to happen 1/29 and the seller apparently sold the house to someone else as a cash sale a couple weeks ago.

    Currently my title company is trying to see what solutions they can work with all parties.

    I have only talked to one lawyer so far who seems to think I can only sue for damages for my inspection/appraisal costs.

    Does anyone have any experience with this? I was doing a full 203k where the property was going to most likely have equity in it, and there are no properties like this in my area.

    I am in the state of Pennsylvania

    submitted by /u/dregan777
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    Are appraisals coming back anywhere near purchase prices right now? (NC Triangle)

    Posted: 26 Jan 2021 02:29 PM PST

    Just seeking some insight from those who have bought or sold in my area or others recently, or from professionals.

    I'm in one of those hot markets where I have bud 8 and 13k Over ask with no contingencies and lost. 20k over is winning it in some cases. So say I bid 20k over. Are appraisals coming back anywhere near purchase prices right now?

    This is in the $150k-$200k price point

    submitted by /u/everylittlemarvel
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    New Construction Appraisal

    Posted: 26 Jan 2021 08:00 PM PST

    This might be a dumb question, but is it normal for a lender to request payment for an appraisal for a new construction home? I'm purchasing my first home, and the in-house lender is asking for my credit card information to pay $600 for an appraisal inspection/report. We're still a few months out from closing. I just want to know if this is standard procedure - thank you in advance!

    submitted by /u/jasonsan
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    Best way to choose an agent?

    Posted: 26 Jan 2021 08:32 AM PST

    We are selling our first home and moving to a new state for my job.

    What is the best way to choose an agent to sell our house and choose an agent in the new city for buying a house?

    Also the place I am moving for work is right on the border between two states. About half of my coworkers live on one side, the other half live on the other. Is it a safe assumption that realtors in the area are licensed in both states?

    submitted by /u/poultrey_wolf
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    I’ve heard so many horror stories about HOAs. What are some positive stories out there about them?

    Posted: 26 Jan 2021 05:16 AM PST

    I should note, I'm asking this question from a place of total ignorance, because I don't yet own a home and I personally don't know anyone who has lived in an HOA that has talked about their experience. There are so many stories on Reddit about the red flags, lawsuits, and nuisances of having to deal with an HOA, but I was wondering if anyone has a completely positive experience with one? Why live in an area with an HOA versus one without one?

    submitted by /u/qiuqiu156
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    Is lead abatement required in GA now?

    Posted: 26 Jan 2021 07:19 PM PST

    I'm trying to refinance my mortgage to take advantage of the low rates. I was supposed to close this week, but now the lender is requiring testing for lead (it's an 80 year old house - there's going to be lead paint). Is this required now in Georgia?

    Any chance of just shopping for another lender?

    submitted by /u/pitathegreat
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    Seller's and Listing Agent Ghosting Following Closing

    Posted: 26 Jan 2021 07:05 PM PST

    My wife and I have bought our first home in Pennsylvania in the last week. The seller's agreed to an amendment to make repairs. The city the home is in required an inspection, which the sellers scheduled for the morning of closing. The results of the inspection dictated the sellers make repairs and have a reinspection. The sellers made most of the repairs after settlement and my wife had the plumber invoice them for the remaining repairs.

    Before we can move in, the city needs to come out to reinspect the property. However, they will not do it because the sellers have yet to pay for the initial inspection. The listing agent has been ignoring all contact with our agent since before the settlement, and did not appear at the closing with his clients.

    My wife and I are pissed because we paid upfront for the repairs the seller's did not complete but signed for in the amendment, and we cannot begin the move-in process without the reinspection. We have no idea what to do since the Listing agent is not contacting anyone.

    What do we do? What can we do?

    submitted by /u/Seedofsparda
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    Is this normal? (Utah)

    Posted: 26 Jan 2021 12:36 PM PST

    I'm looking to buy my first home in Utah, somewhere south of Ogden and north of Lehi. Looking online, it seems that so many listings have multiple offers within 24 hours. I see comments like "no more views. Best offer by 5PM today." These places are selling FAST! Are people buying them sight unseen? Or are they just fast?

    submitted by /u/HoosierTrip
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    Buyer's Representative Fee on Estimated Cash to Close worksheet

    Posted: 26 Jan 2021 06:33 PM PST

    I have a preapproval letter and Estimated Cash to Close worksheet. There is a line item under Estimated Closing Costs which includes the following:

    Buyer's Representative - (Optional) - $250

    Can anyone explain what this means? Is this some additional commission to the buyer's agent on top of the sale? And it is "optional?"

    submitted by /u/GoldenPostMind
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    Building replacement house while living in original

    Posted: 26 Jan 2021 06:21 PM PST

    I'm considering buying a house+lot which has the house located at the edge of the lot. The house is not well maintained and there are many new constructions in the area so there is really only value in the land. My plan is to live in the old house while building a new house on another part of the lot.

    ​

    My questions are regarding the permitting aspect:

    1) Is this something typically prohibited

    2) Ultimately I will have to get some confirmation from the municipality but don't even know what to ask them, what are some critical things to ask?

    3) This municipality has a "Pre-Application Meeting" process to discuss prospective developments but they want to review site plans. I want to avoid developing plans for some high-level questions. Should I be going through this pre application meeting or is there typically another way to get the answer?

    ​

    Thanks!

    submitted by /u/RotatingDoritos
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    First time doing this...Pre Approval question.

    Posted: 26 Jan 2021 06:18 PM PST

    I am a first time home buyer at the age of 23 here in central PA. If I got preapproved at 109k. I told the bank I wasn't sure of the exact amount of money down depending on the time that would vary. If I would put more money down does that increase what I would be able to look at? Is that pre approval letter, technically with 0 down since I didn't specify the amount I would be looking. Just a general question!

    submitted by /u/flyxmolo
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    International Real Estate (Mexico)

    Posted: 26 Jan 2021 06:11 PM PST

    My sister is a somewhat successful small business owner in the US, and has it in her mind that she really wants to buy a $500k brand new construction condo in Puerto Aventuras, Mexico. She has enough for a strong down payment and can easily afford the remaining mortgage. I looked it up and it apparently is considered a very safe, gated location on the coast near Cancun, and it's very beautiful. She sees it as a great vacation area, and when they're not there, they plan to rent it out on Airbnb.

    I am extremely risk averse and think it's a bit extravagant, and worried that there will be complications because she is not a Mexican citizen, but I am admittedly very naïve in the subject. I am also probably overly worried about safety and violence in the area, but it's very possible that I am overreacting to overly dramatic US news about Mexico that may or may not be painting an accurate representation about safety in the region.

    Is there any basic advice on buying property in Mexico, or suggested research that I can recommend to her? I just want her to make a good financial decision, and above all to be safe. Really appreciate the insight, thank you!

    submitted by /u/Vanglorian
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