Home Buying and Mortgages...

[CENTURION44]

Why does this process have to suck royal ass...So many diff stories from my mortgage guy...almost worse than a car salesman...

Any words of wisdom would be greatly appreciated...

thanks in advance

 

[bw1]

What's he telling you? Do you have a realtor?

 

[Tres Huevos]

They know that if they quit talking your brain will become un-NUMB you might walk out.

 

[CENTURION44]

I do have a realtor and have already signed a contract to purchase a house...We are sorting thru the thousands of diff loans and trying to find one that suits our finances and plans...

One minute 10% down is enough for a good rate...then i get a call that we need 20% down...Ive been literally doing this for 8 days now..and running out of patience...

 

[CO B-man]

I do have a realtor and have already signed a contract to purchase a house...We are sorting thru the thousands of diff loans and trying to find one that suits our finances and plans...

One minute 10% down is enough for a good rate...then i get a call that we need 20% down...Ive been literally doing this for 8 days now..and running out of patience...

You will still have to pay mortgage insurance unless you get an 80/20 loan by only putting 10% down. If you are purchasing a brand new home never been lived in before you will more than likeley be blindsided with a $200/month increase to pay for taxes that were based on an empty lot in which the new home was not realized. They will have to not only catch up with the missing taxes they will also have to increase your escrow for future taxes. Just something to keep in mind. That was a nice christmas present for me right atfer a divorce and a $263/month increase!

 

[bw1]

I do have a realtor and have already signed a contract to purchase a house...We are sorting thru the thousands of diff loans and trying to find one that suits our finances and plans...

One minute 10% down is enough for a good rate...then i get a call that we need 20% down...Ive been literally doing this for 8 days now..and running out of patience...

If your mortgage guy can't give you straight answers, go to some one else. Have your realtor get on him/her

 

[mkazzbmf]

If its a "special" loan of any sort than its to be expected...By special I mean....stated(where you dont verify your income), 1st time home buyer, If your credit score is less than 620, If the home is unique, etc...... I do Residential mortgages for a living and I know that 99% of the time when it gets screwed up its the investment bank that is chosen to float the loan says yes yes yes all day to me until I get the loan rolling with them.....then they break the brokers balls and the shit just runs down hill to the borrower. If you want me to see what he is making off of you just for your peace of mind I can let you know once you have his commitment. Im kinda busy to take on any purchase deal right now but I will help you with any questions or anything should you need it.


Kaz

 

[CENTURION44]

If its a "special" loan of any sort than its to be expected...By special I mean....stated(where you dont verify your income), 1st time home buyer, If your credit score is less than 620, If the home is unique, etc...... I do Residential mortgages for a living and I know that 99% of the time when it gets screwed up its the investment bank that is chosen to float the loan says yes yes yes all day to me until I get the loan rolling with them.....then they break the brokers balls and the shit just runs down hill to the borrower. If you want me to see what he is making off of you just for your peace of mind I can let you know once you have his commitment. Im kinda busy to take on any purchase deal right now but I will help you with any questions or anything should you need it.


Kaz

Thanks...let me know if this sounds right..

My FICA score is 715...I have plenty of income..assetss and cash in the bank...I want to do a short term A.R.M. at 2.25% Hes telling me no because it wont be my primamry residence...so the bank would consider it a vacation or investment property..and I want to do 10% down...hes coming in a 7.25% with 10% and said i can only get the lower rate with the %20 down..and one thing ive learned is cash is king..so id like to hang onto it...

 

[CO B-man]

If its a "special" loan of any sort than its to be expected...By special I mean....stated(where you dont verify your income), 1st time home buyer, If your credit score is less than 620, If the home is unique, etc...... I do Residential mortgages for a living and I know that 99% of the time when it gets screwed up its the investment bank that is chosen to float the loan says yes yes yes all day to me until I get the loan rolling with them.....then they break the brokers balls and the shit just runs down hill to the borrower. If you want me to see what he is making off of you just for your peace of mind I can let you know once you have his commitment. Im kinda busy to take on any purchase deal right now but I will help you with any questions or anything should you need it.


Kaz

Thats cool. Why do Mortgage companies not warn about the taxes that I mentioned above. When that happened to me I was mad and called my mortgage company and she was like yeah that happens often with brand new homes as if she should have known that and forewarned me so that I could have been prepared and saving instead of getting hit with a $1300/increase??

 

[hammer37]

Thanks...let me know if this sounds right..

My FICA score is 715...I have plenty of income..assetss and cash in the bank...I want to do a short term A.R.M. at 2.25% Hes telling me no because it wont be my primamry residence...so the bank would consider it a vacation or investment property..and I want to do 10% down...hes coming in a 7.25% with 10% and said i can only get the lower rate with the %20 down..and one thing ive learned is cash is king..so id like to hang onto it...

I'm a mortgage broker in CA and saw your post. First, the reason why he wants you to put 20% down is because the 2.25% loan he wants to put you in a negative amortization loan. While the payment is appealing, you are deferring interest and your loan balance is going UP. Not a good loan for a purchase. In some scenarios, it can be a very beneficial loan for a refinance.

If he's quoting you 7.5% for a full documentation loan (verifying your assets, income, etc) I'd say you can do better. why not consider a Fannie Mae 80/10/10? That's 10% down and the lender does two loans to avoid the mortgage insurance issue. You can get in the sub 7's on your first loan and the second won't be bad either. You could also keep your cash and go 80/20 with no down payment. Best of luck....

 

[CO B-man]

I'm a mortgage broker in CA and saw your post. First, the reason why he wants you to put 20% down is because the 2.25% loan he wants to put you in a negative amortization loan. While the payment is appealing, you are deferring interest and your loan balance is going UP. Not a good loan for a purchase. In some scenarios, it can be a very beneficial loan for a refinance.

If he's quoting you 7.5% for a full documentation loan (verifying your assets, income, etc) I'd say you can do better. why not consider a Fannie Mae 80/10/10? That's 10% down and the lender does two loans to avoid the mortgage insurance issue. You can get in the sub 7's on your first loan and the second won't be bad either. You could also keep your cash and go 80/20 with no down payment. Best of luck....

Nice!

 

[mkazzbmf]

2.25% on a neg am loan sounds far fetched to begin with....Your prob looking at 3% to be realistic......7.25% does seem high but if its with no pts I would say thats not all that bad for an investment property. if its with pts its about .5% high in my opinion.


Kaz

 

[ZKaudio]

go with a direct lender ... and get a referral.

 

[jnevin]

You can go full doc to 95% on a second home with a rate of 3% but you will have M.I.

If you put 10% down, you'll be at 3% without M.I. Countrywide has an optional feature called TAMI, which is Tax Advantage Mortgage Insurance, meaning you can pay the M.I. in the rate and write trhe interest off. It's a loan with a neg am option, so if you're in an area that isn't appreciating, it may not be the greatest loan. The balance will stop growing when the balance 15% higher than it was when you took the loan out. It's a great loan if you want to stay liquid and would rather invest your cash instead of paying almost all of your payment to interest anyway.

Thing is, if your loan officer is ignoring you, drop him and find someone good. Countrywide has a Fast and Easy loan program that could close you in one day if title and appraisal are done.

 

[p0ink]

i hope i grow up to be a slum-lord one day.

 

[CENTURION44]

my broker is using countrywide..so you think i should just drop him and go direct...I am going neg. am but ill be way ahead of the game..the house i got was a steal plus once i do the work to it..itll be worth a bundle..in a year or two max...thats the deal..thanks for your help...its greatly appreciated

 

[CENTURION44]

oh and yes it is a no points loan...and i also looked into the piggyback loans but the second loan would be at 8.5% so not sure if that would be worth it...

Whats a good 30yr fixed rate with 20% down and my fica score???

 

[Maffiosa]

Drop this douche bag and get a new broker, he's stoking you. He's prolly in way over his head or he is trying to pork you. You have a very simple loan with a great credit score! You do need 10% donw for a investment or vacation property. If your buying in a good area where the comps are high and vaule in the properties are on the rise them a ARM is the way to go. Sounds like you know what you want, go find a broker who can help you! Been doing mortgage for 6 years now, its blows my mind how many brokers out there have no fucking clue what they are doing!

 

[jnevin]

oh and yes it is a no points loan...and i also looked into the piggyback loans but the second loan would be at 8.5% so not sure if that would be worth it...

Whats a good 30yr fixed rate with 20% down and my fica score???

Get an 80/10 with the pay option ARM for the first lien and a HELOC for the second. If you go directly through Countrywide, you'll be able to get them to come down on the rate easier. (I was a branch manager for them, they get pricing exceptions on almost all of their loans.) The second will be close to 9%, but it's interest only and as you pay it down, you'll be able to draw on it for whatever you need. Full doc on an 80/10 30 year fixed today (no points) would be around 6.5 depending on what your lender wants to make. The ARM comes with a 3 year pre-payment penalty, so make sure you know how long you plan to hold on to the property before everything is final.

 

[ZKaudio]

lol... I'm not even in the industry... I write the commission schedules for the brokers though.. have an intimate working knowledge of the back end.... (no pun intended)

 

[cboogsrun]

Why does this process have to suck royal ass...So many diff stories from my mortgage guy...almost worse than a car salesman...

Any words of wisdom would be greatly appreciated...

thanks in advance

shop around my friend. I just went to the bank and applied for a construction loan to build my house. The difference between some of the banks was enormous. half a percent of interest on 200k over 30 years was around 70$ a month. The amorization alone was in the thousands.

 

[CENTURION44]

yea i think im gonna just go with countrywide direct...with the 80/10

 

[manny78]

I'm in the same process right now and it's easy. You're probably dealing with the wrong people. I go to different banks, tell them I'm looking for a mortgage and that the best rate I got so far is XYZ % from ABC bank. The only questions I get asked are:

- what term ? 10-15-20-25 years ?

- How do you wanna pay ? Weekly, bi-weekly, monthly ?

- what is your cash down ? 25%+ means no insurance required

Btw I dont deal with a broker. They suck ass.

 

[solidspine]

Keep it simple make sure that is no prepayment and

then pay the thing off over the next 10 years,

Makes the points, interest everything very, very, very secondary.

 

[CENTURION44]

So whats the next step..The contract is in their attorneys hands and will be at my attorneys by the end of the week..I just got my packet to send off to the mortgage co...and that will go out today...How long do these things usually take...Is it within reason to have this done within 3 weeks/????

 

[jnevin]

So whats the next step..The contract is in their attorneys hands and will be at my attorneys by the end of the week..I just got my packet to send off to the mortgage co...and that will go out today...How long do these things usually take...Is it within reason to have this done within 3 weeks/????

What state are you in? Which bank did you decide on? If you went with CW and turned everything in with the correct information, the loan could realisticly be underwritten and approved with whatever conditions in 2 days. All you'd be waiting for would be title and the appraisal.

 

[CENTURION44]

im in NJ...and i did go with CW...

 

[jnevin]

im in NJ...and i did go with CW...

CW is very fast when it comes to processing and underwriting conforming loans. Title can take maybe a week, same with the appraisal. Once those are in, you should expect to be dome in a couple of days, fund in another day or two. They may shoot for the end of the month to close you to save you per diem interest. I've never done Jersey loans, so I don't know how long title and appraisals can take. If they qualified you for a fast and easy loan, it could seriously be done pending clear title and appraisal. Just be in constant contact with your loan officer. I'm hoping you went to a local branch instead of called the 800#?

 

[ksharp01]

Down here there is need for flood insurance also that is usually not disclosed until last minute to customers so you may want to just ask about that to. *my .2*
Good luck, I know it can be a pain in the a@@ but all worth it in the end.

 

[jnevin]

New Jersey just needs shitty Jersey insurance.

 

[ZKaudio]

^guido insurance.

 

[jnevin]

^guido insurance.

I haven't been back there for a while. What's the latest guido craze? When I was a kid, it was taz or bad boy club stencils on the back of their tinted iroc or 5.0 with those geigh ass lights under the car.

 

[Spartacus]

Keep it simple make sure that is no prepayment and

then pay the thing off over the next 10 years,

Makes the points, interest everything very, very, very secondary.

yeah I won't buy if I can't afford 15 years

 

[jnevin]

yeah I won't buy if I can't afford 15 years

I don't understand why people why people just try to pay their house off instead of take the lowest payment possible and stay liquid.

 

[Spartacus]

I don't understand why people why people just try to pay their house off instead of take the lowest payment possible and stay liquid.

I don't think it affects the payment to enough of an extent to do anything with the liquidity
for average Joe moving from a 30yr to 15 yr

 

[jnevin]

I don't think it affects the payment to enough of an extent to do anything with the liquidity
for average Joe moving from a 30yr to 15 yr

The thing is, people on the average refinance every 3-5 years, which is when a mortgage payment is almost all interest. Their effective rate in doing that is close to 30%. If people count on the equity they have in their home to bail them out of a jam, they're fucked. The only way to tap into it if things go sideways financially is to sell the house, which can take months. I dunno. Nevermind.

 

[gonelifting]

For "insurance" I opted for a 30 year mortgage instead of a 15 year so I could have the benefit of lower payments if that is all I could do, BUT.... I do pay off the loan as if it's a 15 year loan. The extra principle will bring the loan down to about 15 years and be paid off by then. The only difference is about $25 extra a month and I have the luxury of going back to the 30 year payment without the extra principle payment at any month I feel like I can't hack it any longer. It's working pretty well so far. I'm down to 12 years left on my 30 year mortgage I got 3 years ago.

 

[ZKaudio]

lol at the 50yr mortgages now

 

[gonelifting]

lol at the 50yr mortgages now

Holy shit!! Really? omg That's how they're getting out of this! Genius! I was wondering how it would be done. Refinance, here they come.

 

[ZKaudio]

they are very sweet from the broker side though.. unf. most people who can afford mil+homes are smart enough to realize the int. accrued on that b*tch.

 

[jnevin]

they are very sweet from the broker side though.. unf. most people who can afford mil+homes are smart enough to realize the int. accrued on that b*tch.

Most people that can afford mil+ homes would rather have the write off.

 

[gonelifting]

Most people that can afford mil+ homes would rather have the write off.

They could only write off the first million though.

 

[jnevin]

1 mil is reasonably significant.

 

[gonelifting]

1 mil is reasonably significant.

pffft.

I mean, yes, YES it is. To you kinds of people. I often forget who I'm speaking with.

 

[jnevin]

pffft.

I mean, yes, YES it is. To you kinds of people. I often forget who I'm speaking with.

I found $10M in gold boullion when I was cleaning my fish pond this weekend. That's just how I roll.

 

[strngthnhonor]

u have 715 fico. "plenty of income...assets and cash" and you're buying a 2nd/investment proerpty. and you dont know anything about loans/mortgages??? LoL.

weirddddddddddddddddddddddddddddd.

Thanks...let me know if this sounds right..

My FICA score is 715...I have plenty of income..assetss and cash in the bank...I want to do a short term A.R.M. at 2.25% Hes telling me no because it wont be my primamry residence...so the bank would consider it a vacation or investment property..and I want to do 10% down...hes coming in a 7.25% with 10% and said i can only get the lower rate with the %20 down..and one thing ive learned is cash is king..so id like to hang onto it...

 

[CENTURION44]

u have 715 fico. "plenty of income...assets and cash" and you're buying a 2nd/investment proerpty. and you dont know anything about loans/mortgages??? LoL.

weirddddddddddddddddddddddddddddd.

Do any of my posts give you the hint that i dont know anything about mortgages>??? I dont think so...one thing i do know is that im not the smartest person inthe world and was simply asking the advice of some reliable bors...no thanks to you...sometimes you just have to learn to zip it..