Buying My First Rental Property

For the past couple of years since the purchase of my first home on August 2019, it seems that all my family and I have been doing is working on the house. Examples of home improvement projects are below: 

• Remove old shelves that were throughout the living room 
• Remove old wobbly countertop that was between the living room and kitchen 

• Sand popcorn ceiling that was throughout the house 
• Paint the inside of the entire house  
• Remodel the kitchen with brand new tiles, cabinets, countertops, and appliances.  
• Refinish hardwood flooring throughout the house 
• Remove old hardwood floors in the first-floor bathroom and install new tiles 

• Remodel the second-floor bathroom, starting with removing old tiles, cast iron bathtub that weighed a ton, bathroom sink, toilet 
• Insulate the bathroom, install new bathroom tiles, walk-in shower, new bathroom sink and toilet 
• Insulate the attic, remove the old sheetrock, and install new wood paneling throughout 
• Create patio area in the backyard for barbecues and family get-togethers 
• Not to mention the 50+ tons of dirt that we have removed from the backyard 

• Install brand new plumping including a new water/boiler combo unit 
• Install new electrical system including a new electrical panel 

Some upcoming projects we have planned are to install a new deck and make the basement a living space. The house has finally come together and the only logical choice to make now is to buy a second home and relive the fun all over again!  

So that is exactly what we did. We began our house hunting and after a couple of weeks of looking for properties, we decided to put an offer on a condo in Winthrop. Two days after we put in the offer, I got a call that our offer was accepted 15k below asking price. It was time to start the mortgage process. I reached out to three lenders to compare quotes. The first lender was the one that we used for our first property, the second was when we refinanced our home, and the third was a referral from a friend. We went with the referral because the lender gave us a better interest rate, was local, and the fees that they charged to originate the loan were minimal compared to the other two lenders. I guess we got what we paid for because although we got a better interest rate compared to the other two lenders, the process and the experience was awful compared to the previous two lenders, who were exceptional.  

The transaction started fine. The loan officer went over the preliminary numbers on the initial disclosure document with us and we signed it. Then he sent the updated closing disclosure with incorrect information, and the agreed-upon fees had changed. When I pointed it out, he said the changes would take effect on the next closing disclosure and not to worry. After a week, I reached out to the loan officer for an update. He said they were finishing the documents and getting a property appraisal done. He finally sent me the updated closing disclosure with the correct information. I asked the loan officer about next steps. He responded there would be radio silence and we wouldn’t hear back for a while because they would be working in the background to ensure that all documents and appraisal were done to close on the property. After a week, I reached out and he said all was good; they were still working on gathering all the documents. A second week passed. I texted and called but heard nothing. My email received a vacation out-of-office. The next day, I got an email from the processor assuring me that everything was moving along. She said they were still gathering all the required documents and would have the final numbers soon. A week before our closing, I got an email telling me that we had insufficient funds. She said we were short by 9k even though I was looking at my bank account and saw that I had 20k over the amount needed for the down payment. I thought to myself: This can’t be. How is it possible that I am short by 9k when I have more than enough to cover the down payment? I asked if she had the updated bank statements and transaction history and she responded yes. When I asked which month’s bank statement she had, she answered the one from May, even though it was the end of June. We had made the initial deposit for 15k in June so of course it wouldn’t appear on the prior month’s statement. Thus, their calculation was coming up short because they weren’t seeing the initial deposit.  

It blows my mind that these professionals could miss something so simple, which could cause you to default on the loan and potentially cause you to lose your initial deposit. Eventually we were able to get the commitment letter, went to the closing table, signed the closing documents, and finally got the keys to our second property. What I learned from this experience is that some of these lenders do not prioritize customer satisfaction and experience. When I think about it, perhaps when we as IT members work on projects and support tasks, we should take the time to proactively keep people informed of progress. We should also double-check our work to avoid mistakes and save our customers from frustration. By taking care of these tasks on our end, we can truly make a difference in our customers’ experience.