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Post by redskyatnight on May 1, 2008 6:28:34 GMT -5
I'm buying a house. The first mortgage guy I talked to ran my credit and says I am elligable for a VHDA loan. I need 3% down for an VHDA loan. The second one says I can put $2000 down which is less than 3%.
The third says I'm not eligable for VHDA because the ex still has me on the equity line of the house we lived in (yes, he should have taken me off a year ago, but he hasn't and I think it will take a court to enforce it), but FHA will loan it to me with 3% down.
I know a great down payment is helpful, but 3% is all the money I have. I won't have anything left over and I need appliances and paint.
All three of these people seemed to know what they were talking about, but all three are telling me something different. Argh! How do you choose a good mortgage broker?
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Post by Mod (PQ-Kermie) on May 1, 2008 7:50:27 GMT -5
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Post by crushy on May 1, 2008 7:53:07 GMT -5
My reply to you kind of depends on how much you want the other brokers to know about the other. Ultimately, you are the one purchasing the service and making the investment. I would try to tie each of them down on specifically what it is about your credit that does or does not allow you to qualify for which loans. Yes, putting a larger down-pmt down is optimal, but given your situation and having had a couple of houses myself, $3,000 isn't all that much in the end. If it will get you in more comfortably and given your tight situation with appliances, etc, I'd probably be looking at getting in for as little down as possible. This is assuming you'd have to finance appliances and some loans or cards for those purchases can get quite high in interest. Better to pay a little more at your loan rate than a financing rate available for appliances, not to mention, it makes them tax deductible. This would also be a very minimal change in your monthly pmt compared to another bill. There are so many things that make us, our credit and our needs unique, but this is where I'd start. I just don't want to see you going with someone that says they think you can get in for little down and then not qualify...that's why I'd try to tie them down and do some personal digging. Your debt to income ratio is big. Also, are they all looking at the same credit bureau rating? When was the last time you checked your credit report? This could make the difference they are relaying to you now vs what actually happens. In the end, I'm with PQ, ask the experts. Good luck! Crushy
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Post by jules on May 1, 2008 9:49:08 GMT -5
My suggestion: do the 30 day lock with the best rates each are offering, and then get in writing all of the details, such as monthly payment and a complete breakdown of the closing costs (which would include the broker fee, if there is any). If you are planning to escrow, don't forget about homeowners insurance and taxes, figure out what those monthly payments will be on top of your mortgage and how many months your lender requires up front to be deposited into your escrow account. I think 6 months is standard. Once you have all of the info, you can make the decision that is best for you. In my opinion, one broker is as "good" as another -- what matters is who can get you the best deal. Another option is to go to your bank directly and find out what they can offer you. I did this when I had to refinance -- spoke directly with the bank who held my mortgage and said, "Look, I'm happy with your service, and would like to keep my business with you, but you need to make it worth my while." They gave me a bunch of discounts as a courtesy -- my new rate is actually lower than my original one. And speaking of refinancing, I'm sure it says in your divorce decree how long your ex has to refinance and get your name off of the mortgage. If that time has passed (and a year is crazy! generally it's 30 - 60 days), you do need to enforce it legally. The easiest way would be to go through your lawyer. Finally, it is definitely not any of my business, but... might you consider holding off on making the purchase until you have a bit more saved for your downpayment and things you'll need to buy upon moving in? Or did you happen to find a particularly great deal you just can't pass up? It only concerns me because it seems like everyone who bought houses in the last few years with these special deals like low downpayment, 0% down, etc. are now facing foreclosure, which I can only imagine would be a complete nightmare. I believe that most advisors recommend at least 10% down. Up to you of course, and sorry for butting in, and perhaps I'm just really financially conservative, but talk of little or no downpayment makes me nervous.
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Post by crushy on May 1, 2008 10:02:00 GMT -5
It's very dependent on self-awareness and self-discipline. I agree with Jules 100%.
I went into my first house with the min down and my 2nd with a healthy down to avoid jumbo loan status as well as gleening a return on our discipline and choices not to over-extend. Am I glad I took the initial risk? Yes. Am I willing to take a risk right now? No way (given my personal situation).
I think conservative is obviously the way to go. I didn't really see myself as a risk-taker until thinking on this post. I'm very grateful I bought my first house under the terms I did and could afford at the time. I worked for a mortgage company, so I was well-informed. It was all still very conservative, no ARM, good rate, etc, but like Jules suggests (assuming I understood her right), it's easy to become lulled into some sense of financial security believing if you squeeze the end of the tooth paste now, it won't come out somewhere else, hence, the self-discipline.
Crushy
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Post by freckles on May 1, 2008 10:45:53 GMT -5
If You Pay a Extra $50.00 on Your Payments its like paying 2 Payments That One and the One at the end The Frount Payment and the Back Payment
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Post by crushy on May 1, 2008 11:15:15 GMT -5
Freck is right. Matching your principal portion each month makes a world of difference. It's almost scary how many people don't understand that concept. You also have to be sure to mark your additional principal pmt to go to principal because if you don't, they will drop it into your escrow. Pay attention to your escrow analysis and like Jules said, you have to make sure they have built your T&I into your pmt. Most mortgage companies won't allow you to sign on a new loan without an escrow account, but it happens and it's sickening to see the new home-owner's faces when they realize their pmt is higher than they originally thought or had qualified for.
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Post by redskyatnight on May 2, 2008 6:36:08 GMT -5
Holy smokes, you guys are a wealth of information!! Thank you for all you thought out replies. There is so much information in this process, that I am a bit overwhelmed. I've already signed a purchase agreement, the inspection is today and I'm locking on a 6% mortage today. I'll suck it up for a couple months for the downpayment.
Again, I really appreciate all the suggestions and knowledge from all of you.
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Post by crushy on May 2, 2008 8:13:49 GMT -5
Good for you! I'm happy for you! I think you'll feel better once you're locked in. I know it's scary and overwhelming, but I was talking to a friend a few days ago (she's looking at flipping duplexes), I bought my first house and doubled the equity within 7 yrs. I remember thinking about how sick I was after I'd signed on the first loan and now, can't even recall the terms. I'm stretched pretty thin now since I didn't expect to have this mortgage pmt on a single income, but it will be worth it. I've fought like he!!, rented an apt on the main floor (to my mom no less - this would take another 17 threads...I don't recommend it), etc to keep my equity, but it's FINALLY worth it!!
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Post by crushy on May 5, 2008 16:00:49 GMT -5
Hey, Seyfert...
How's the house thing coming along? I bet your kids are excited.
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Post by redskyatnight on May 6, 2008 5:33:57 GMT -5
That goodness for house inspections.
The house has "significant structural damage" on all four corners and differential movement that is beyond acceptable tolerances. There is also a host of other problems dealing with electrical, plumbing and mold. The home inspector recommended licensed contractors fix the problems and a structural engineer evaluate the damage to the walls and foundation.
The seller has 5 days to say if they will fix the 11 items on the addendum. I think it is unlikely they will have licensed contractors fix all the problems and will back out of the deal.
I was very disappointed on Friday, the day of the inspection, but there's nothing I can do about it except be thatnkful I did not buy it will all those problems.
The kids were disappointed too, but we'll keep looking as soon as I hear from the seller.
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Post by crushy on May 6, 2008 8:44:20 GMT -5
Whew! I'm glad you found out now. I've been hearing something on the news about a couple that bought a house from their Real estate Agent (he'd actually lived in it himself) and even after an inspection, there were 7 fake vents, literally no furnace and on and on. It's $90,000 to bring it up to what it should have been if the Inspector had done his job and if the Agent had any scruples. Has anyone heard this story? I don't know if it was local here or not. I'm sure something even better will come along and you'll be glad this happened. Maybe you can work on getting pre-qualified for when you do find the right place. I'm sorry to hear your kids were disappointed. Crushy
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Post by freckles on May 6, 2008 10:02:31 GMT -5
Or they could cut the Price in 1/2
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Post by crushy on May 6, 2008 12:33:33 GMT -5
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Post by redskyatnight on May 7, 2008 0:12:53 GMT -5
That stinks for those people. I was lucky and went with a company that had a glowing recommendation from my an old friend who is also a real estate agent. Plus, I was present for the inspection and asked a ton of questions.
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