Your best option is to work with a lender that will take the time to walk you through what you need to do to raise your scores. FHA for example will require a 10% down payment if your score is under a 580 so it really is in your best interest to work on your credit.
Take a look at the recommendations from some of my past clients on my Trulia profile by clicking the link below my phone number.
Please feel free to contact me for more information or help.
Senior Mortgage Banker
Lending in ALL 50 states
Great Plains National Bank
Apply Online: https://secure.smartapp1003.com/102471/?loanofficerid=106115
The answer to this question can honestly go either way and will depend greatly on your income, credit score, and debt to income ratio. It will be best for you to speak to a licensed mortgage professional to answer this specifically to your situation.... more
One consideration I don't see identified below: I have owned three houses, including the one I am getting ready to sell now. I owned my first house for just seven years out of the 30-year amortization period, so my EFFECTIVE interest rate was MUCH, MUCH higher than the nominal 5.75% rate it WOULD have been IF I had owned the house for thirty years -- and this will almost always be the case because mortgage lenders "front-load" interest payments in their amortization / interest payment schedules, and they do so precisely because mortgagors [like me] almost never hold the mortgage for its entire term, resulting in a MUCH, MUCH higher rate-of-return for the mortgage lender. The same thing happened with my second house, and the same thing is about to happen with my third house -- in fact, on this 15-year fixed rate loan, I have paid almost all of the interest due on the entire note in just three years! Three great loans for the banks; three crummy deals for me. So, for everyone who does not realistically expect to own their home for the entire term of the loan -- and how many of us realistically expect to stay in that house for thirty years? -- their EFFECTIVE interest rate is NOT simply the lender's offered APR minus the (currently available, but for how much longer?) mortgage interest tax deduction.
Rather, their EFFECTIVE interest rate would be: (1) the SUM of (a) the total amount of interest they will pay under the proposed mortgage -- ask for the amortization / interest payment schedule -- over the number of years they realistically expect to stay in the house, PLUS (b) any finance charges ["points"] and other closing costs, if they are significant, MINUS (c) the total value of the (currently available, but for how much longer?) mortgage interest tax deduction over the number of years that they realistically expect to stay in the house; DIVIDED BY (2) the number of years that they realistically expect to stay in the house. It is this, EFFECTIVE interest rate, that should be compared with alternative investments and their expected rates of return, as well as the psychological "sleep at night" factors discussed elsewhere, when deciding whether to pay cash for a house, or to finance it.... more
Appraisers are required by USPAP (Uniform Standards of Professional Appraisal Practice) to ignore distressed sales, which are sales that occurred under distressed situations, like divorce forcing a quick sale, foreclosure/short sale. But if there's multiple sales like this, to the point where a good portion of the sales and inventory in the area are short sales or foreclosures, it'll have a huge impact on your home's value.
What amount of the homes for sale are shor sales or foreclosures? What is the price range for the homes that aren't?... more
Craig- A 203 K loan takes the Acquisition and Fix-up Costs totaled together minus
your down-payment to arrive at the loan amount to be considered. In the case you
mention: Acquisition cost is $ 60,000. That's what you are paying the seller , thats
the purchase price of the house, and so recorded. You may want to put a contingency
in your purchase offer that you must be able to secure the added fix -up funding.
The Program requires a second appraisal for "after fix - up value " . There are limits to
the amount you can finance for repairs related to the 2nd appraisal value. You must
qualify, the specified repairs must be priced at standard cost, and sufficient to bring
the house up to FHA property standards and local building codes.
There are " HUD CERTIFIED " 203K consultants that you can employ to help on
the fix-up end. The lender may require one. The Bank or the Sales agent should be
able to refer you . Good Luck! 203 k is involved , but a great program!
Bob Brubaker Highlight Realty West Palm Beach, FL.
Knowing that you are purchasing a house for $400,000 in Levittown, with 10% down, I am going to say that the $15,000 is definitely on target. With 10% down, I believe that the banks will not allow you to waive escrows, so I generally add 6 months worth of taxes in my good faith estimates.
On the FHA estimate, there are 2 things that you have to look for. If the $27,000 number includes the 1.75% up-front funding fee, you should not look at that as an amount needed to close because it actually gets added to your loan amount rather than being charged as a closing cost. Aside from that, without taking out my calculator, that person is probably also charging you points, which will be called either an origination fee, a discount fee, or a broker fee on your estimate. You also may want to verify the title insurance with your attorney, because the BOA estimate may not include the full cost, but rather only what the bank requires. No attorney would let you walk away from a closing table without a title policy for yourself.
I would be happy to work up a good faith estimate for you, and compare them to the ones that you have. The importance of having an accurate estimate is so that you have the correct amount of money at closing.
Please feel free to call me at 516-972-1687 and I will help you out.
Senior Loan Officer
Preferred Empire Mortgage... more
According to NYS DOS, if you had placed an "offer" in writing, it is not a "contract" until it is accepted AS IS by the seller, signed by them AND returned to you as such. Basically signed, sealed and delivered. If the sellers had made any changes, such as negotiating price, closing date, etc., they cannot change terms, sign and deliver to you to make a contract, obviously; you would need to initial and deliver those changes to the seller before it is contract.
Another item is the "life of offer" where you stipulate how long the offer you have placed is "good" for. Technically, if the offer is not negotiated, signed with changes initialed and delivered by the date and time stipulated, the offer has expired and has not become a contract, and is not legally binding.
So the question becomes, did you place an offer and was it accepted, signed and delivered? If not, you have no contract, just an offer that has not been accepted, unfortunately.
I really hope you have a buyer's agent working on your side.
Good luck!... more