Home refinace attempt going badly... 15 year 2.75% no points.

[crazyal]

After the process I went through since Jan 15th... it was anything buy easy and it should have been a cake walk based on 38% loan to value, 834 credit score and 21 years on the job... and I paid down my mortage by 1/3...

I have a couple of friends/co-workers that decided against even applying because they do have credit issues or no equity...

I can honestly say I have even less understanding of how banking/lending works the older I am...

Back in 2003 I bought 42 acres of land for a great price. I really didn't want to pay cash as I wanted to build on the land in a short amount of time and wanted to use the money to make construction loan go easier. I figured that I would pay for half and borrow the rest since it would get rolled into the construction loan. Most banks wouldn't even deal with me. They couldn't understand that I had stock that I was going to sell to pay for the land/ building the house. They dragged their feet for over 4 months, by which time the stock (which I hadn't sold yet) went up by about 20%. Because the stock went up I had even more money. You would think that was a good thing yet to the bank it set off all sorts of red flags and it took another two weeks before they were happy again. By the time I did sell the stock it was up almost 25% from what it would have been if the loan went through quickly. My credit score was/ is through the roof and have an excellent job.

I used the extra cash to buy a dump truck, dozer, and backhoe. It took me two years to clear a lot, build a road, and dig a hole for the foundation. When I went back to the bank they were tripping over themselves to loan me money. If I had let them my house would have been fitted with solid gold toilets. Within two years it went from not giving me the time of day to wanting to put me into the largest loan they could. Go figure.

 

[clemsonfor]

cause you proved that you could pay it?? I mean you have a through the roof score already so that dosent make sense?

 

[murphy1244]

cause you proved that you could pay it?? I mean you have a through the roof score already so that doesn't make sense?

Loans on land are close to impossible to get, once his infostructure was in his values went up.

 

[ultrarunner]

Somewhere there has been a huge shift in policy...

My Real Estate friends said loan approval is much faster than it was even going back a couple of months...

Part of it could be Real Estate Appreciation in some markets...

Beginning December appraisal 380k and 520k end of January just doesn't make sense on my home.

Today's paper said for the last 5 months the median home sales price has risen 20% EACH month!

 

[300UGUY]

In our area, there are finally some homes being built, after several years of almost nothing. Interesting thing here is that they are already running out of contractors. You see a construction job now, all you see is gray hair on site. All the younger folks have left the biz, the state or both. The houses being built are smaller and cheaper, but wages are a lot less now.

 

[dmccarty]

I drive by a place the prefabs walls and such for houses. The place sits next to a cement plant. The prefab place has had a very empty parking lot for years but in January I noticed the parking lost was almost completely full. The cement plant has had help wanted signs up for months. I think the prefab place is selling to large company developers so they must have demand. There is a development that has been building for years that I drive by daily. It has been going very slow with complete halts to construction at time. It is now building slowly again.

Later,
Dan