If you live just east of York, Pennsylvania, then youâ€™ll want to change the zip code for your questions so that you get answers from that area. You listed a Berkeley, CA zip code, and agents here have no clue about building costs in PA.... more
It's true that ther may be some variability between lenders, but you will want to discuss this with a lender who handles a wide range of loan products. I would recommend you talk to a senior representative with a reputable mortgage banking company (different from a mortgage broker), in that they represent many of the major companies and can also make loans from their own funds.
I'm a realtor, not a lender, so I don't do loans, but if you would like a reference to a couple of great lenders that work in your specific area, you are welcome to email me or call. Just FYI, I don't receive referrral fees from lenders, so I only refer to lenders that have demonstrated superior customer service skills and programs.... more
It really depends on who the lender is. As stated by others below, it is typically better to do the ASK up front, as you are more likely to get concessions in the first round of negotiations. Most rarely will renegotiate, even on repairs, but you should definitely ask. If they have a line item in their internal budget for a closing costs credit, they may say yes. If no, it is unlikely that you would ever have gotten it. Try to keep in mind that the banks are already taking a huge loss on the property, including many more expenses and add on's that you know about, so if they say no to your request, step back and evaluate whether you are still getting a good deal. if so, and if it fits your budget, don't let ideas of "what they should do" spoil your enjoyment of the property. Go with the good deal, and don't worry about the rest.
Yes I work with a lender that specializes in 203K loans. We're planning on doing a seminar in Berkeley April 2 around 10:30am.
203k loans are a fantastic alternative to traditional FHA loans or conventional loans especially when buyers are looking to purchase any 1-4 unit property that needs work. They work great for REOs and "as-is" properties where the sellers can't or won't pay for repairs.
FHA and 203k have the same basic guidelines in order to qualify but 203k loans really open up a world of opportunity for buyers that would otherwise be shut out of a property because the condition.
feel free to contact me if you'd like more info... more
Good for you for considering the repair/replacement costs of homeownership. Many homeowners rely on appreciation and refinancing to cover these costs, but we've seen where that can lead. It sounds like you're more interested in a detached home than a condo or townhouse. In a well-managed HOA, these costs would be built into the HOA dues, to fund the "reserve." If you are going to establish your own "reserve" for a detached home, you are taking a step that many homeowners overlook.
A quick note regarding closing costs, once you get to the point of selecting a lender..... Due to a new RESPA rule (the Real Estate Settlement Procedures Act), your mortgage lender may overstate the closing costs in the initial Good Faith Estimate (GFE). This is because in general the lender is "locked" into the fees stated on the GFE, even though many of them are third party fees, and would have to "eat" whatever increase occurs between the time of the GFE and the Settlement Statement at close of escrow. The rule is designed to protect buyers from unscrupulous mortgage practices, where fees are added or increased. Some lenders may make available to the buyer the underlying worksheet, which may provide a more realistic picture of expected closing costs, although they need to be careful not to run afoul of the requirement of the rule.
Best of luck!
Red Oak Realty
You are not being impatient. If you've supplied all the necessary information and paperwork, it should only take a day or two. Also, the lending model is important. Liz mentions RPM, which is good, and there are a couple of others as well who have local underwriters, a pool of great local appraisers, and local funding authority. Good luck to you!!
Red Oak Realty