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Did I get shafted or am I stupid?

ObiWan
We went to a bank with our account statements and paycheck stubs to get pre-approved for a mortgage.....bank pre-approves us for $178k. I made an offer on a house in May for $145k....the seller refused and came back with $155k...we accepted.

We were trying to use a VA Loan and I am funding fee exempt....bank wanted a crazy amount for closing costs still.....it costs $1k just to record a deed here.

So we made another offer to the seller for $161k for the house (was appraised over that) and the seller would throw $6k towards closing. Simple enough to help us out right?

The bank refused to give us a mortgage. They said it was "collusion with the seller".

Am I too cheap?...trying to get away with having the seller ""PAY"" towards closing costs?? The bank has been doing nothing for 2 months.....and wanted another 1 month extension to our contract....they said if I paid another $200 to have the appraiser "retype his paperwork to reflect the new purchase price of 161k", we could get the house financed and closed.......WHAT? They just previously said I was colluding with the seller???



I don't see how people buy homes in this inflated market. I was trying to do a VA loan and am funding fee exempt....bank wanted too dang much. I lost money.

Is this a common practice of banks? Sellers can't ""PAY"" towards closing????
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Comments

14 comments

Date Votes
  • 11BravoCrunchie
    Go with a different bank.
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  • RustyBones
    You really just need to go to a different bank.
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  • Captplaid
    To bad Hairy isn't around anymore. He usually offered great advice in these situations. Might want to email him.

    In the 90's this type of loan was very typical. This was a common way to make a "no money down" house purchase. It wouldn't surprise me that banks quit doing these kind of loans after getting burned.

    We worked with two different banks and one financial institution (Huntington)recommended by my employer. We never had these problems. They were very quick and efficient.
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  • whompuss
    Countrywide Mortgage handles everything online . We got our house refinanced for $210k, an appraiser came out which is normal, all paperwood was handled by mail, telephone or online, the closing attorney drove out to our house, along with a notary, to close the deal. It was quick, painless, and cheap. google Countrywide Mortgage and it'll get you to their web site.
    Since our good experience I've told friends, several have gone the same route and got the same outstanding service.
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  • rogue_rob
    Try USAA for financing. They do pretty good work.
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  • ElMuertoMonkey
    Which bank is this? I'd like to avoid it if at all possible.
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  • SuburbanNoize
    iw ould not reccomend coldwell banker, the process they put us through to get pre-approved was simple, the process after took about 2 months, they wanted soooooo much personal imformation, and we had to write letters explaining the most stupid stuff. Dont go with them. at least not in florida.
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  • jimbowby
    [8D]--Yea, ObiWan-whompuss is right, I've had my last 3 Real Estate contracts with CountryWide--Outstanding--

    --Call 1-800-669-6607 and go thru the menu for information, good luck-

    --[:D][:D]--JIMBO
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  • HandgunHTR52
    To answer you original question, yes the seller can pay closing costs. When we bought our first home (using a VA Loan, BTW) the offer that we gave was about $5,000 more than what they were willing to sell for, but we stipulated that the seller pay closing costs. We had no problem. I left the closing with more money than I went into it with.

    The problem may be that the original contract did not include the statement that the seller pay closing costs. That shouldn't be a problem for the bank. As far as the appraiser goes, if the house appraised for over $161K, why does it matter? It sounds to me as if the bank is trying to rip you off. Some of them hate the VA loans because they don't get to charge your for stupid stuff like PMI and you don't have to put anything down, so they don't get cash out of the deal.

    I agree with the others that have said get a different bank.
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  • sig232
    As foreclosures increase and rates go up banks are pulling in the money and making it more difficult to obtain loans. A common practice. To increase their bottom line they will fee the heck out of you because fees are instant income to the monthly bottom line. Loan interest is not, it is spread over the life of the loan.

    Banks will do a lot more for you if you are willing to give them cash in the form of fees. Shop around to avoid this game. Other banks may need to get more money out to lend and will therefore offer more attractive terms. Its all about a banks personal porfolio, how much is in loans at that institution and how many problem loans they have currently, this will have a strong effect on their desire to lend at all and at what cost to the borrower.

    Shop all the sources until you find someone who has to get some money out there to earn them interest, they will offer much better pricing.
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  • tsavo303
    you need another bank. you should have shopped around anyway, they willl screw you on the rate ALWAYS if you dont
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  • Sav99
    Simply go to another lender. V.A. allows for up to 6% seller concessions. There is no "up front MIP" with a V.A. Make sure that the realtor states the 6% concessions on the P.A.
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  • ObiWan
    Thanks all.....I was thinking I may be a little cheap trying to conserve investments....I wish I could use USAA...they don't do mortgages here.

    The bank was Bank Pacific. Which only leaves two more banks on this crap island that do VA Loans.

    The local economy is collapsing so it was a good thing I didn't get the house...........people are fleeing this island for the States left and right.
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  • Colt Super
    Pay attention to what Sig says with respect to financial matters - he is a high-powered expert.

    Doug
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