Skip to main content

Waiting for Mortgage Approval

I wanted to title this blog post, HSBC mortgage services sucks. But then though better of it.
There have been so many highs and lows in this home buying process and right now we're at a particularly low ebb.
It’s been almost two months since we went into contract on the property and yet I'm still in HSBC mortgage services limbo. I still have not been approved for a mortgage. I thought about shopping around to other mortgage lenders but I had chosen  HSBC because I was already enrolled in their first time home-buyer program (First Home Club). As part of my enrollment, for 10 months I saved $188 in an regular HSBC savings account. HSBC would then match my savings by 4. Over the 10 months, I have saved $1880 with the financial match, this becomes $7520. This program is designed to assist home-buyers with closing cost.  I also had to attend a home buying seminar at a community organization.

Despite my student loans, I would consider myself to be credit worthy. I have had the same job for 5 years and been in my chosen field for 7 years. I repay my bills on time and have a 800 point credit score. I have two credit cards, but mostly rely on one card for recurring monthly bills. I pay my bills on time. I have been careful with money, putting away a portion of my paycheck each month into an high interest savings account. It’s daunting to me that I have yet to receive mortgage commitment.
I think that my mortgage lender is avoiding me. She has not responded to my  calls nor emails. Maybe my anxiety is causing me to be a bit impatient.
I've been soliciting advice from people who have been through this process before. One coworker was in contract for six months on her coop. Six months? good grief, I don’t think I can wait that long.
My real estate attorney, tells me that this is to be expected as in New York where it's not unusual for this process to drag on for several months, especially when you purchase a cooperative or condominium.  
After mortgage approval, the next step will be for the property to be appraised by the bank. Then I have to be interviewed by the coop board! I will keep you posted on any new developments.

Comments

Popular posts from this blog

Right Building, Wrong Apartment

A few days ago, I met with my attorney and we had a discussion about the two bedroom property that I made an offer on in October.  While he agreed that the space was good and the price was not bad, he was concern that the coop was being mismanaged. I have had some of the same concerns as well. I had been doing some reach online and the feedback has not been positive. I observed documents on Trulia, Zillow and Streeteasy that shows that in 2008 and 2009, at the height of the economic downturn, the property values on the cooperative started to nose dive. Then banks started to refuse mortgage applications for the building. The coops has yet to recover and the prices have continued their downward slide. Another pressing concern was that the coop has not properly budgeted for needed repairs and expenses. In 2012, The building had a operating cost of $6.4 million dollars but had only budgeted for $6 million. That means that the cooperative is operating at a loss. My attorney said that fo...

Commitment Letter and Appraisal

Today, I got news that I've been waiting for for several months.  I finally got a mortgage commitment letter!  When I got the congratulatory email today there was this sense of I don't know, joy and sadness at the same time. I wanted to scream from the rooftop and then I wanted to cry. I'm excited but past experience has made me extremely cautious. I have always said that I don't want to focus on the negative but there is this part of me that is feeling uncertain and doubtful. A lot has happened over the last several months and it would be heartbreaking to get this far and have to be disappointed. On the other hand, it appears that everything is coming together. Yeah, finally some good news.  We have a tentative closing date of October 1, 2013. But before we get to closing I will need to be interviewed by the coop board. Thankfully I had completed my coop application package in June and the only missing document was the commitment letter, which I imm...

Switching Mortgage Lenders

I think that in my last post, I prematurely wrote about taking a break from the property search. Yes, this has been a stressful time. While the feeling was genuine, it isn't a true reflection of where I am in the process.  I have been in this property search for sometime now and at this stage, I'm almost desperate to get to closing. I'm tired of attending open houses. I'm tired of  putting my search criteria in Streeteasy and Trulia and somehow hoping that the results will be different.  Though I was reluctant to search for yet another mortgage lender, I had to do just that.  It had all happened out of my curiosity and frustration that I walked into a  bank and asked to speak to a loan officer. It was free and didn't require a commitment. I told the loan officer about my concerns and the trials of the last several months. Then I asked about the cooperative that I made the offer on. And to my surprise he knew it well. He had just close on an apartment in that bui...