Good point. Financing could fall through for many number of reasons.
One thing that I don’t know if is being talked about much is how prevalent waiving contingencies is in this red hot market. Our agent basically told us that if we didn’t waive the inspection contingency there was almost no way to win an offer. On another offer recent, I kept a financing contingency and lost out to an offer that waived it. Does that basically mean they would be able to pay cash, or just confident in ability to line up financing?
I’m just sitting here, watching my fucking payment go up every fucking day, until my house is finished.
Fuckin hell. Can’t even do a lock yet. House might be finished April 30th. Might be finished June 16th. Fuck maybe July although they promised June 16th, but there’s no consequences if that doesn’t happen so I don’t believe it.
House structure is seemingly all done or whatever, but they need power to put everything else in… and PG&E is taking forever to hook up the development to the grid.
You still do the inspection, and you might not get the mortgage, but you can’t get your deposit back from the problems found. Buyer takes all the risk.
Someone threw a rock into my bay window and we decided to get it replaced completely since its original and shitty. Salesman told me it’d be installed by (last) November. Guess what?
Thankfully my limiting factor was 100% having enough for a down payment. It’s still a no brainer to buy fuck me dude this jump is going to cost me 6k per year.
I waived all contingencies when I bought my apartment a few years ago. Our broker said that was standard practice in NYC, but I hadn’t heard of it being done in other parts of the country. Made waiting for underwriting pretty stressful, since we had to make a 10% deposit that gets lost if the deal doesn’t close.
Millennials love not owning anything, building no wealth and being essentially indentured servants to property owners. That and avocado toast are their two favourite things.
Any estimate on how many deals fall through? It seems like the bank would be pretty incentivized to approve most loans if someone is willing to pay the price, especially given the highly competitive environment. I’m at 3% earnest money as suggested by our realtor, so it wouldn’t be the end of the world, but it would be the most expensive thing I’ve ever purchased besides a college education I suppose.
And now thanks to Caffeine I have survivors guilt about not having my interest rate go up 200 bp during the frankly awful experience we had with finally becoming homeowners. Just once I would like to endure something shitty and not have survivors guilt about it lol.
I don’t have statistics. I think one of the main risks is that the property appraises at less than the offer price, which could cause some underwriting problems if you are up against a loan-to-value constraint. However, it seems like the appraisers that the banks hire tend to come up with valuations pretty darn close to the accepted bid.
In my case, getting a low appraisal wouldn’t have mattered since my building sets limits on the amount of financing permitted that are stricter than the bank’s requirements. The main problem was that the bank drug its heels finishing the underwriting process to such an extent that I had to threaten to switch banks before they began moving more expeditiously.
“Hey we need your 1099 from Bumfuck Bank from 2016
That seems stupid but ok here
More days go by, closing date now within a few days
“Great news you got approved with conditions!”
What the fuck are the conditions I gave you my entire financial history
We need another letter from your employer saying you still work there
Lol they move slow and closing is tomorrow, what the fuck, also I have more cash than the home price and you have my bank statements so this seems like overkill
Lol don’t care fuck you
Get stupid letter, close, rage about title insurance
You just gave me flashbacks to buying my house. I was mid 20’s, single, and had been basically covered in flop sweat throughout the entire process, terrified that something would go wrong somewhere along the line. Closing was scheduled for a Monday morning. At 4:30 on Friday afternoon, immediate boss and the Big Boss round up everyone on the floor and tell us that half of the team is going to be laid off effective immediately. Everyone is given a letter with our name on it and a message telling us if we’re fired or if we can come back on Monday. I was so convinced that (a) I was going to get fired and (b) the lender was going to find out at closing that I could barely walk the 5 steps it took to go receive my letter.
[Luckily, I wasn’t fired, but I still get chills thinking about it]
Ive also been saying this for years now so dont mind me. Im going to be 80 on my deathbed, a 1 bedroom condo in LA will cost 70 million dollars , and my last words will be “Its a bubble! It has to pop sometime!”