So let me just say this. I officially hate banks, appraisal companies and insurance companies. We were supposed to have closed on this house 3 weeks ago, but we are still waiting. I erroneously thought the quicker we took care of our responsibilities with the home purchase, the quicker we would be able to close. This, if you haven't figured it out yet, is completely not the case. We had all of our inspections and paperwork filled out within the first week of this whole mortgage process. The appraisal alone took 8 weeks! It began with the appraiser who was contracted by the bank farming the appraisal out to another appraiser who failed to submit it when she was done. The bank failed to follow up, so after a slew of e-mails and phone calls from both us and our Realtor the bank finally received it and we were back to waiting. After a few days we hadn't heard anything so we were back to harassing the bank yet again. We then found out that the appraisal wasn't good enough and the bank had sent it back to be reworded and have more comps added. Finally a week later we were back in business. The appraisal came back and was forwarded to the PMI company. Our contact at the bank told us she would call us to set up the closing that afternoon, as soon as they heard back from the PMI company. Three days later we had still heard nothing. We were back to harassing the bank. We finally found out that we were turned down for PMI. It never even occurred to me, or the bank, that this would be an issue. I went onto the great land of the interwebs and found numerous forum and blog posts about people having similar issues. Ours was refused over lack of comprables, size of the acreage and the existence of a barn, among other things. So we began the process of trying to find a money tree or some other source of the remaining 15% of the now necessary 20% down payment. We were lucky in the fact my parent were able to help us out.
My main reason for posting all of this is my concern on how this type of problem is growing. If my parents hadn't have been able to help me, I wouldn't have been able to get my farm. Even if I had been able to scrape together that kind of money, I would have been out of funds and unable to actually start my farm until I was able to save the funds up again. Other people may not be as lucky as we were and a situation such as this will cause others to postpone, or worse, give up on their dream of self-sufficiency.
Updates to come when we ACTUALLY close!