so stressed.. mortgage stuff... vent/ advice(nbr)

cbcarden

Ok so my fiance and I are looking for a house.  We are over apartments! Our last apartment experience was horrible (my first apartment, his second). We moved in end of June 2010, and from the beginning we had problems. We were on the outside, and evidently, our living room wall had major water damage so the wall was like chipping and falling on into the carpet. You couldn't have microwave/ toaster oven on at same time or the breaker would throw. The tenant's toliet above us had a bad seal or something, so his water leaked into our bathroom. Not to mention how bad lady bug season was. UGH. Needless to say workers were constantly tracking through our apartment. Our german shepherd isn't people friendly, so I would have to make arrangements or take off from work to stay with him. I HATED it.

So instead of sticking to our lease, we told them we wanted out and why. They still insisted we had to pay lease fees so we just paid them to be done with that place. We decided to stay with my parents until we found a house to rent or buy.

Well we got a pre-approval for a rural development home which is 100% financing. Since we don't have huge amounts of credit history, we may have to provide documentation of like two accounts we have had open for over a year (which we have many).  He asked how long we rented, and for some stupid reason, I decided to lie and say a year instead of telling the truth.... His response was like there's a year of rent and utilities. And he asked if we paid in check and I said some of the payments.  Gosh I have dug myself in a hole!!!!!!

 So here are my questions 1.) Should I go back and tell the truth or continue to lie?

2.) What kind of documentation would they want? Would the apartment complex still have records? I thought about saying we paid online with a bank account that I have now closed since I don't live close to that branch anymore, but I do not know if "the bank" would still have history of "so-called debit transactions"  I just do not know what to do.  I am about to be like screw it. We will just rent for another year.

 Another question, if by some sweet miracle my lie doesn't bite me in the ass. I got an introduction email with like estimates based upon my pre-approval.  There is like a settlement cost clause.  Just wondering if that is paid up front out of pocket or added to mortgage amount. It is stuff like title insurance, appraisal, up-front mortgage payment, a whole bunch of inspections, credit report cost, tax service fee.  Just curious because it totals an estimated $14000.

So thanks if your still with me for reading all this.

jayleigh68

I would tell the truth. Your bank should have all records of money that came out of the account. The apartment will also have your payment history. The $14k sounds like your closing costs. These are typically paid separately frOm the loan but you can ask the seller to pay all or part of them. Buying a house is a pain in the butt and waiting a year won't ease the process. Though it may help with saving up money.

chrisandchris06

yes your credit report often tells the truth too.  Buying a house is very scary but so worth it.  Research about FHA, see if you or your FI can get gifted any add'l money you need for closing costs and/or down payment (from your parents or like we did- our 401k)  it can be done.  GL  you could also just save your money in the meantime living with your parents or find a rent to own or rent a house if that is not a possibility.

chrisandchris06

also- you can get back bank records.  I did online for mine, and my apartment manager submitted a letter of recommendation to our mortgage co bc we were upstanding renters

melisa.hesson

The rural housing program is great - my BIL is building a house right now on the same program.  He loves it, but he did say he had to put a substantial amount down.  Also, not sure if your program does this the same way, but the local people in the same group have to all help build the houses - its not like funding a house to be built.  Their house will take over a year to build because everyone in the program builds everyone else's house at the same time...

If your trying for rental history, we were able to say we paid rent to my parents when we lived with them and that got us our full year...not sure if you could do the same, but its worth a shot! 

triplenine

14k is losing costs that are in addition to your mortgage. They are usually paid the day of the closing. Ours were 12k so that sounds about right. As fir the truth, just provide the other stuff, not the renting stuff. Also, are you going thru a mortgage broker or directly a mortgage company? I definitely don't recommend a mort broker. We went directly to wells Fargo and it was much more pleasant. .

greengirl0909

Our closing costs were rolled into our house payments.  We paid nothing up front either time we've bought a house.

futuremrsgorski

Our house was new construction in a planned community.  Since we bought a little less than a year before it was built and we were able to move in, the builder wanted us to make "good faith payments".  They took what our closing costs were going to be and broke them down into monthly payments to be paid while the house was being built.  It was a struggle financially since we were still renting at our apartment at the same time, but it helped us get a better control of our financial situation.  When closing time came it was great to know we only had to make one part of the closing cost that was left.  

As far as the lie.  Just be prepared to tell the truth when/if they ask.  You are giving them your financial statements anyways when you give them your bank information so if they really want to look into they have the ability.  

You are in a highly stressful time, but relax in knowing that there is an end to the madness and hopefully a big beautiful house that you get to raise your family in!