Thursday, May 7, 2015

NVR Mortgage Approval and the Paper Trail

Today we met with our loan officer (LO) at NVR Mortgage.  To get the process rolling on buying a new house you need to get a loan approval - presumably from NVR Mortgage.  Of course when it gets closer to the time you actually close on the house you can try to obtain financing from another lender, but I think at this stage of the game it makes the most sense to go through NVR Mortgage.  Our new community is not offering much in the way of incentives, in fact Ryan Homes recently raised the prices of the homes.  But they are giving $10,000 towards closing costs if you close with NVR Mortgage so that is nice.

Before our appointment I e-mailed most of our documents to our LO in advance so that made our appointment go very smoothly.  I thought our LO did a good job explaining all of the documents and walking us through the process.

At this stage of the game the most nerve-wracking thing about buying this house with Ryan Homes is that they do not allow contingent contracts, but we have not sold our current house.  And we plan to use the proceeds from the sale to pay the down payment and closing costs.  But since Ryan Homes does not allow contingent contracts we need to show on paper at least that we can buy the new house even if our house does not sell.  A classic chicken and egg problem - I'm sure made more serious by the recent housing bust.  So to show you have enough money you basically need to agree to empty every savings account you've ever had and then some - but make sure you can track those funds.  Because while it would be great to get that money from a money tree - Ryan Homes won't accept it without a paper trail.  So not that much fun.  But we got through it.  So at this point I think I can safely say we are buying a new house.  Yeah us!

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