What are you trying to accomplish ? There are a few strategies you can use and if you don't use the entire credit you will lose it. Depending on how mortgage pricing is working on any given day, buying down the rate just to use the credit may or may not be cost effective. Ask for a lower price in exchange for some of the credit. But with a bank involved no cash back is allowed at closing. If you are forced to take the credit try a 2-1 buy down or something similar. A buy down is more or less just pre paying interest on the loan in exchange for a lower payment in year 1. Or ask if lender will let you do a principal reduction payment at closing with any excess credit. I hope this helps.... more
I am goin through with United Equity as well... I believe we started our process the same time as yours in Dec. 2010... we are at that point where we are waiting to be denied from Wells Fargo on the first mortgage, our 2nd was mortgage also with Wells Fargo was reviewed and denied within 3 weeks. Wells Fargo has been reviewing our documents for the last 6 months... no answer yet... but I have a co-worker who has used UEN, and her process is at a stand still because she is not comfortable with short selling her home to investors and then having the investors sell back to her at a lower price but at a higher rate... I thought it was illegal to short sell to someone and then have it sold back to you???, and now I am losing faith with UEN, because we will not short sell to any investor... and I feel like I just wasted my money on them... soon I will have to face it and realize that I may just have to short sell and move out... which is kind of sad cause we really like this house...
Before you go to the next step of either throwing in the towel, changing areas or waiting for a miracle by winning the lottery, try getting a second opinion. Please remember every lender is different and all loan officers are not equal. Although there are certainly some great ones out there, I run into some real winners. Please take the time and speak to another LO just to make sure your really capped at the lower sales price.
One of the things you can do if you do not have the minumum equity in your SoCal home is to pay down the balance to get to the right number. It may mean putting less down on the new home so you can pay down the old home mortgage. FHA requires 25% equity, conforming loans require 30% equity. VA does not have an equity requirement, so if you are a veteran think about using this.
In any case the lender you chose to work with for your new home financing is the one who should order your appraisal.... more