No matter which way you turn to try saving money, mortgage lender says it won't work!
We are looking in our area at the houses that are in the more affordable range, which are fixer uppers and foreclosures. But every time we try to ask the mortgage lender we are preapproved with how can we do it we get a no-go answer from them. For example:
Fixer upper: We alerted them to a house we were interested in within our budget but that needed repairs, especially the finish floors. They said a loan that covers improvements could only be gotten if it increases the value of the home. Plus, the loan could only be approved by getting a licensed contractor to submit an estimate and then the estimate would be reviewed by "a team" with the mortgage lender and only if they approve can you get the additional loan. In other words, lots of red tape and no guarantee.
Foreclosures: We see cheaper homes that are listed as foreclosures, but they all indicate the sale must be made in cash. Even though the mortgage lender we're preapproved with has a program that allows you to offer a cash payment (essentially the lender buys the house and then sells it to the buyer at the same price plus a convenience fee) , the plan will not cover a house in foreclosure.
Every time we find a way that we might be able to save money the mortgage lender instantly shoots it down. I can't understand why with the market so bad (in terms of affordability, availability, and high mortgage interest rates) why can't lenders be more flexible?