Buying a house update

achiduck · July 2012

This is going to be a P&R as FI and I are headed out for sushi to console ourselves. So the banks says while we can afford the mortgage payments, etc after renovating our place (even so it added a lot of value to the selling price) our income-to-debt ratio is a little on the high side and we can't get the mortgage. Pretty disappointed right now

jenny&will2014 · July 2012

I know you won't see this until you get back (i hope you ate some sushi for me too lol) but I am sorry that you didnt get a mortgage! on a positive note you won't have to deal with wedding and buying a house stress at the same time

lv2011 · July 2012

Aw! I'm sorry to hear that. I know it sucks when you're really looking forward to something and it doesn't go through. As PP said, on the brighter side, you don't have to plan and close/ move at the same time. Perhaps if it's still on the market after the wedding, you can get some smaller debt out of the way so that you CAN qualify. Fingers crossed for you!

music11 · July 2012

I'm so sorry to hear that!

FI owns a small house right now, and in the next few years we will be looking to upgrade, and move a little closer to my work. I'm worried about bank approval because I have a lot of student loan payments. I hope everything works out in the future--keep us posted!

tamrahelmer · July 2012

Awww ! I''m so sorry! Is this with a small bank or a bigger bank? I just ask because we ran into this problem while we were buying a house as well. It was because it was a smaller hometown bank though and they weren't willing to take the step. We got a second opinion at a different bank and it was not a problem at all! It might not hurt to check with another bank and hope the house isn't gone!

pengy16 · July 2012

Did you try more than one bank? I bought my house last year and the bigger banks wouldnt work with you if your over 18-22% (I had student loans in deferment with no set payment amount at the time so they high estimated which screwed me over) but the smaller banks will take the risk since they didnt have as many bad loans during the housing crash. Also I got a better interest rate with the small bank (the interest rate was 1.25% less than the big bank)

Otherwise try to pay down all the debt you can, try not to open any new debt, save as much as you can and try again in the set # of months the bank tells you to wait. If they didnt tell you, call them back and ask them what you can do and how long you should wait, if you have a good lender they will tell you all that information.

Sorry for your set back but hopefully you will get some good news next time around!

snuff9861 · July 2012

That sucks so much. So sorry you didn't get the mortgage.

achiduck · July 2012

It was at the bank that our current mortgage is at and it's one of the "big five" in Canada. I have an 18 month plan for us to be 100% debt free. I just didn't want to live here that much longer if we didn't have to.

On the plus side we did learn that if we didn't have that debt we would have qualified so that's good. We also learned that when we do buy a house if the purchase period falls before our renewal we won't have to pay any penalties for breaking the mortgage if we stay with the same bank.

So all in all, we're disappointed but we did learn a lot.

mrshall1027 · July 2012

I'm so sorry to hear that. I believe that everything happens for a reason and even though you may not see it right now, maybe it will pop up soon. Keep your chin up

EmilyD87 · July 2012

We just closed on our house last week. While I LOVE our new house, I am SO behind on wedding stuff because of it. My invitations came in the mail 3 weeks ago and I haven't even started on them. None of my DIY projects are even started because I didn't want to move them half finished. We were supposed to close the end of June but it was new construction and got pushed back.

Needless to say, your loan situation might be a blessing in disguise. I think I'm a little crazy to take on our new house and our wedding so close to each other. I love that even with the wedding you have a 18-month debt free plan. Our wedding will be paid off in a year and then we can focus on my student loans.

Buying a house update

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