Porchlightscott

Hi Pam,

The biggest concern you should have is the remaining term of the lease. This would concern you as well as the lender. A lender will require that the lease extend at least 5 years beyond the term of the loan. If you are buying all cash and do not need a loan, you want to make sure that the lease payment is not renegotiated and does not have a scheduled increase in payments in the near future.

From my experience, that would be my biggest concerns.

Good luck!

Scott - Sat Oct 25 2008, 18:38

Cesar,

As long as you continue to make payments on the other home they can not force you to sell or take your home from you. If you consider Bankruptcy however, a judge may have different ideas about how to put you in a position where you can more easily afford your monthly obligations.

Let me know if you would like someone to contact your lenders on your behalf at no charge. DO NOT pay anyone upfront to help you negotiate with your current lenders. Too many scams out there. - Thu Aug 21 2008, 09:44

Your agent is paid by the seller for finding a buyer for the home, you are not responsible for compensating your agent. Typically there is a 72 hour response time for the seller to accept or counter your offer. Once this time has passed the contract (offer) is void. - Sun Aug 17 2008, 19:54

And they don't require 3% down, they max out at 95% LTV but have silent second mortgages - 4% for Orange county. I do a lot of these loans. - Thu Aug 7 2008, 17:44

Right, 7% for the 30 and the interest only 35 and 7.125% for the 40. The rate is irrelevant. The difference in payment from 6.875% and 7% is a couple of bucks. You would use a first mortgage of 95% and there is down payment assistance of 4% that has no payments for the life of the first mortgage.

It's a really good program for first time home buyers. You wouldn't happen to work in a public school or community college? - Thu Aug 7 2008, 17:38

I don't usually like to use this forum to solicit business but if you have any questions about the CalHFA first time home buyer programs you can give me a call on my cell. 714-336-8286 - Thu Aug 7 2008, 17:34

The rates tend to be a bit higher because of the lender paid mortgage insurance and built in fees but it's a great loan program and the rates are still very reasonable.

You may also want to look into the CalHFA program. You would only have to come in with 1% and they have a 35 year / first 5 interest only and a 40 year fixed as well. - Thu Aug 7 2008, 17:31

Another note: The credit score requirements are becoming more and more strict. You would need a very minimum score of 680 - are you ok there? - Thu Aug 7 2008, 16:59

Anurag, you may want to verify that you can get Mortgage Insurance. As of Friday, August 1st the Mortgage Insurance companies will not insure over 90% loan to value PERIOD in California, Nevada, Arizona or Florida. If you lender is unaware of this you may want to keep looking. - Thu Aug 7 2008, 16:53

I understand where you're coming from Tony. It's simply a matter of you not being aware of the loan program he was looking for. You got a great deal on a conforming 30 year fixed. Congratulations.

FHA loans under the temporary conforming loan limit increase are slightly higher and Anurag got a pretty good deal.

I obviously was upset you and I apologize.

Congrats again on buying your home! - Sun Jul 13 2008, 23:47

The taxes are based on purchase price, not loan amount. I've got this conversation flagged so i'll keep an eye out if you've got any other questions. I still think you're fine. - Sat Jul 12 2008, 13:42

Check to see if your tax rate is only .92 - 1.15 is more common. Also, with taxes due in November most lenders are collecting 9 months and not 6. That's my experience. You're also missing the interim interest from the day you close to the first of the following month. What's your estimated close date? - Sat Jul 12 2008, 12:11

The prepaids don't sound right. You should have tax impounds, insurance impounds (unless it's a condo) and interim interest. I don't want to sound like all the others that say "call me" for the answers, but if you want to shoot me over the GFE i would be happy to decipher it for you.

Many lenders are providing fee agreements that state exactly what the fees are - origination, rebate etc....A GFE does not have to be accurate and it many times is not. It just depends on the honesty of your lender.

According to Flagstar rates from Friday (wholesale rates) 6.625% would be par with no cost and no rebate on a loan amount over $362,790. It's possible that Luke works in Retail and can offer better rates. - Sat Jul 12 2008, 10:41

No, it simply means that you have locked in "that day's" rates with that lender. You may change lenders and you will have an opportunity to lock your rate at that time.

Your lender should be willing to be completely transparent and show you what they are making on the loan and a breakdown of their costs. It is not unreasonable to ask the lender to make between 1 & 1.5% on a purchase loan. Whether they make it with origination or rebate would be something you can discuss.

Ask for the GFE and a detailed review of all costs. Ask your lender to see the rate lock. - Sat Jul 12 2008, 09:58

Again, it sounds like you've made good decisions. Enjoy your new home! - Fri Jul 11 2008, 23:45

That question can not be accurately answered without knowing everything about the loan. There is a 1.5% PMI fee from FHA - if that is not being paid by the seller or financed into the loan that could contribute to your "closing costs".

Also, if you are putting 3% down on a $435,000 our loan amount falls under the temporary loan limit increase that is in effect until the end of this year. That loan amount will carry a higher rate. 6.875% sounds reasonable. I'm sure you could find a lender that would offer less but not significantly less.

I have to also respectfully challenge the answer by Tony Vega because as a lender I know that 5.875% is not available on a 30 year fixed without it being at a cost. Also, $2,000 is not close to being possible for "all closing costs". There is something not right at all with that scenario.

Closing costs on a purchase will also include your impound account - lenders are collecting 9 months of advanced property tax payments currently. Your tax impounds alone will be over $4,600. It sounds to me like you are getting a pretty good deal.

Unless you have reason to believe that your lender is not being transparent with you. Ask them to show you everything they are making on the loan. You may even want a second opinion on the GFE.

I honestly believe that tony vega is a plant from a mortgage company or he's being grossly misled by his loan officer because there are many things wrong with that answer on so many different levels.

Congratulations on your purchase Anurag - it sounds like you're in pretty good shape! - Fri Jul 11 2008, 23:17

No, in California under prop 13 the property taxes and the assessment only takes place upon the transfer of title. In the past, the assessed value was traditionally much lower than the appraised value. However in this market, the assessed value could be much higher than the appraised value.

If county records show liens on the property that would be a more accurate indication to what's owed on it. - Fri Jul 25 2008, 13:55