This deal's getting worse all the time - We're out

We agreed to meet with the realtor this morning at her office to discuss details for the contract to put forward to the seller.

Before going over there, the lender called me to get a copy of our most recent bank statement. I got it all together and sent it over. Upon looking at everything she said it was looking lighter than we had told her. I explained the balance would be where we said at the end of this month when it comes time to pay the closing costs. She explained to me that it needs to be at the target balance a few weeks prior in order to get everything approved. I told her I could deposit some additional savings in cash. She said that would not benefit us in this case at this time.

Confused, I looked around online and found out that we were about to make a huge mistake adding cash to our account. It must be verified and bunch of legal stuff like that. I found this article. Check it out here.

I took this new information to the realtor. She said she would see if the seller could delay the closing cost a few extra weeks. The response came about a half hour later that the seller will not budge.

The seller is completely inflexible on all accounts. First, we offered over $4k more than the listed price. Second, they wanted to cut our option period in half. Third, they wanted to have all closing costs paid for in full 3 weeks. Fourth, they don't want to move out of the house for another 2 months from now. Last, they don't want to give us a solid date in which they would move out and don't agree to pay for lease back.

As Lando says, "This deal's getting worse all the time."

Maybe they have good reasons. But enough of this. We're out and moving on.


Additionally, we are looking for a new realtor. One who is more aggressive in helping us find something. But now after learning all of this, I kind of want to wait another month before getting into another one of these multi-offer scenarios.

UPDATE:

My supervisor recommended a realtor. I called her tonight and she has already sent a list of houses to browse.

The Chosen - The Sweet and Sour Deal

I took over checks to the realtor for the Option Money and Earnest Money today at lunchtime. Throughout the day, I received emails with copies of our offer, sellers disclosure of house condition etc...


The realtor called me shortly after lunch to tell us that there were offers higher than ours and wanted to know if we wanted to raise our offer. I gave her a big NO! She said she was glad that I stayed firm on our offer as she knows increasing will only make appraising even more difficult.


Then, the lender called me to tell me that there is pending disputes on my credit history against a zero balance that I opened a few months ago (see previous blog entry.) She basically needed me to sign a form allowing her to go in and have the dispute removed. I complied.


I got a call from the realtor later in the evening. She told us that the seller has chosen us. The higher offers would not appraise. We came in just under the threshold.


All is not so sweet and we have much to sort out before we can come to agreement.


The seller wants us to pay all closing costs in 3 weeks, which is a bunch of crap in my opinion. We will do it if it means making the deal happen but I'm not happy about it. The reason it pisses me off is that the seller still wants to stay in the house through March 5, well over a month after we have paid closing costs. It forces us into a situation where we may get stuck paying rent on our apartment and a mortgage payment.


So, tomorrow we have to put the ball back in their court and put the pressure back on the seller. If we can't agree, we'll pull the plug without another thought.

Establishing Credit for My Wife Who Has None

I have added my wife as a cardholder to 2 of my credit cards. Some banks charge a fee for this, some don't and some simply don't allow it. My 2 cards allow it and charge no fee.

She will get the benefit of my history with these two cards that report every 30 days.

90 days later we will set up a card account with Macy's who also report every 30 days.

The key to all of these cards is to charge 10% of limit and pay off each month.

Finally, we will establish an additional type of credit by opening an account with a store like Conn's and follow the same concept. I was told with a place like Conn's to carry the debt for about 6 months, 10% of limit and there will be no fee within that time frame.

The chances are small that any of this will be considered in our house hunt. I'm documenting it in the event that we don't buy for 6 months or more.

Pre-Qualification Letter, Disputing Credit, Additional Documentation

I wrote a letter of explanation on why I was out of work for a few months in 2012 and submitted that along with copies of my wife's ID to the lender as requested.

The lender sent us a pre-qualification letter and introduced us by email to a realtor. The realtor happens to be the wife of the realtor I spoke to in the beginning of our journey.

Additionally, today I set up an account with TransUnion, but didn't see a place to set up an account with Equifax or Experian. I opened disputes for an account that shows a zero balance but is still negatively affecting my credit score. I'm not disputing that it's mine, I'm disputing the balance, the validity, the lack of supporting documentation. Since their is nothing to collect, no one will pay to send someone to hunt down documentation on the collector's behalf. After they have neglected to respond within 30 days, it will have to be deleted. We shall see.