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Leperflesh posted:I did this and it was a very good thing. fwiw, I think you should care more about who services your loan vs. who actually owns it. That said, usually loans are sold servicing released so whoever buys your loan (and securitizes it) is also servicing it (they'll generally service for the life of the loan).
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Mar 11, 2014 01:51
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I might have messed up when I was shopping for financing but things turned out OK. I checked Mint for online lenders and apparently none of them wanted anything to do with me since the purchase price was so low. I was told by a friend who is a realtor to check out a few online companies (that I've never heard of) and they only have my CU beat by a little. Like, I'm getting 3.5 instead of 3.35 or something. For some reason I have more faith in an CU than an online company. Anyway, question. When my wife and I bought our first house (4 years ago in December) I just let her handle everything since she worked at the bank and I was just a goon that was  about that $8,000 dollars from the gooberment. So I never really thought about escrow stuff until recently. Is it possible to pay the taxes and the insurance separately instead of letting the bank handle it? Because it seems better to just pay your tax bill at the end of the year. I'm not sure how insurance would work.Sephiroth_IRA fucked around with this message at 02:37 on Mar 11, 2014 |
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Mar 11, 2014 02:33
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Since I didn't follow advice and bought an old house anyway, is there a thread somewhere about rehabbing? I'm starting to find myself over my head with my windows.
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Mar 11, 2014 02:44
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Orange_Lazarus posted:Anyway, question. When my wife and I bought our first house (4 years ago in December) I just let her handle everything since she worked at the bank and I was just a goon that was Depends on your type of loan. FHA always require an impound account, VA I think will let you waive under certain restrictions (not sure about that), and conventional can typically waive (with 20% down, 10% in CA) though there is often a fee charged. Not sure if you're asking about your current home or a future purchase, but you can try contacting your current servicer to see if they will waive escrows for your current loan. Usually you would request this as part of your original loan closing, but some lenders/servicers will let you do it after closing subject to a minimum credit score or some other requirements. Edit: forgot conventional LTV limits, fixed Captain Windex fucked around with this message at 19:05 on Mar 11, 2014 |
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Mar 11, 2014 02:47
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Stultus Maximus posted:Since I didn't follow advice and bought an old house anyway, is there a thread somewhere about rehabbing? I'm starting to find myself over my head with my windows.
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Mar 11, 2014 02:48
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Captain Windex posted:Depends on your type of loan. FHA always require an impound account, VA I think will let you waive under certain restrictions (not sure about that), and conventional can typically waive though there is often a fee charged. Not sure if you're asking about your current home or a future purchase, but you can try contacting your current servicer to see if they will waive escrows for your current loan. Usually you would request this as part of your original loan closing, but some lenders/servicers will let you do it after closing subject to a minimum credit score or some other requirements. Thanks, It's for a new purchase, we haven't reached closing yet and it's something I realized I never brought up with my loan officer. I've emailed him and I guess I'll see what he says tomorrow.
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Mar 11, 2014 03:26
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So on the addendums on the listing for the hud house my wife and i are interested in is a PDF of what appears to be a powerpoint slid with the following text:quote:The Atlanta HOC is currently offering a I can't really find any information about it besides people posting on websites. The realtor who gave us the MLS listing for this place is not a HUD licensed broker, but the pres of the company she works for is. I don't want to step on her toes but it appears she can't bid on this property for me, and doesn't seem to know much about HUD homes in the first place. How do I bring up the bidding issue? If she's not eligible for the commission and has to hand all that off to her boss is she really going to act as a 'true' fiduciary? Anyway, I am wondering who will do 203k loans and how/if I get approved for that vs the regular FHA w/ 3.5% down I'm already approved for. I'm on a pretty tight schedule as the owner occupant exclusive deadline for bids is midnight Thursday. I need her to tell me what comps look like, I know two people who have bought on that block in the last year. We are hoping to get an inspector in there tomorrow, I probably need a separate guy to look at the pool, and I need to get the 203k poo poo figured out. Help. edit: utilities??? e2: if i'm the only bidder, is there a threshold where a lowball bid will be rejected? They are asking $195. We want to bid where we could do all of the work and get the house at that price or cheaper. Ballpark we are guessing is 20k (paint, replace all carpet, hvac, kitchen appliances, POOL!). That's putting us around a 175 asking price. This is all assuming this would put us in line or cheaper than comps. Can I go lower than 175 and expect them to accept the offer? PuTTY riot fucked around with this message at 07:47 on Mar 11, 2014 |
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Mar 11, 2014 07:31
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PuTTY riot posted:Is a HUD home with insured escrow a Do Not Buy? Is there a big reason I shouldn't consider the $100 down payment incentive offered in my state? PuTTY riot posted:So on the addendums on the listing for the hud house my wife and i are interested in is a PDF of what appears to be a powerpoint slid with the following text: This is more a response to your earlier post, but how much does this house cost that $100 is a significant incentive to buy it? I can't imagine being swayed by that almost negligible amount of money.
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Mar 11, 2014 07:46
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I was under the impression it was a $100 down payment instead of a ~$7,000 downpayment on a 200k loan, not a $100 outback steakhouse giftcard. Am I really that dumb? edit: quote:HUD is offering several new sales incentives on HUD homes that will make these homes more affordable for homebuyers. The incentives vary from state to state, but may include the following: There's also the $0 down USDA loan program that our family makes a lil too much to qualify for. Sorry for the walls of text and stream of consciousness posts. It doesn't work so well in the gray forums. I guess the meat of it is that I need a HUD certified broker and the lady who showed me the house isn't. PuTTY riot fucked around with this message at 07:54 on Mar 11, 2014 |
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Mar 11, 2014 07:48
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PuTTY riot posted:I was under the impression it was a $100 down payment instead of a ~$7,000 downpayment on a 200k loan, not a $100 outback steakhouse giftcard. Am I really that dumb? My gut reaction was that it was a $100 credit, but I hadn't considered your interpretation. I suppose that might be a more persuasive incentive if true, but I don't know why they'd require you to bring $100 to the table; since the difference between putting down $0 and putting down $100 is almost 0% in the context of purchasing a home.
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Mar 11, 2014 07:53
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Huh? Its the difference between $100 and $7000 downpayment on a $200,000 loan
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Mar 11, 2014 07:59
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PuTTY riot posted:Huh? Its the difference between $100 and $7000 downpayment on a $200,000 loan I understand what you mean. I just meant it's weird to require a $100 down payment at all, since $100 is basically nothing when buying a house.
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Mar 11, 2014 08:06
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its the government, who loving knows.
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Mar 11, 2014 08:13
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There's apparently a thing called a 203k consultant and there's a creepy looking dude who reminds me of my old shop teacher a few towns over who is licensed and also a licensed inspector. I think I know who I need to call in the AM.
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Mar 11, 2014 08:47
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PuTTY riot posted:I was under the impression it was a $100 down payment instead of a ~$7,000 downpayment on a 200k loan, not a $100 outback steakhouse giftcard. Am I really that dumb? Why is the Atlanta Home Ownership Center currently offering $100 down payments in states that aren't Georgia, to say nothing of cities that aren't Atlanta?
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Mar 11, 2014 15:15
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MickeyFinn posted:Why is the Atlanta Home Ownership Center currently offering $100 down payments in states that aren't Georgia, to say nothing of cities that aren't Atlanta? Federal grants do not recognize state lines when they are direct funded.
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Mar 11, 2014 15:43
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According to my processor I would have to make a 20% down-payment instead of a 10% to avoid having to pay escrow, that doesn't seem worth it. My captain obvious guess is the banks prefer escrow because that's money they can get a couple percent or more on over the year?
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Mar 11, 2014 17:51
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Orange_Lazarus posted:According to my processor I would have to make a 20% down-payment instead of a 10% to avoid having to pay escrow, that doesn't seem worth it. It's a risk-mitigation tactic that benefits them at your expense*. They collect the money from you up front so that you can't forget to pay your taxes and lose the property to a tax sale, which would also wipe out the mortgage. I would be fairly surprised if they're allowed to invest that money in any significant way. I believe escrow accounts are pretty tightly regulated. But I'm hardly an expert on that front, and I've been surprised before. *Edit: You end up paying the same amount (in theory), but the expense I'm referring to is the opportunity cost of what you could or would do with that money before you had to use it for taxes. Cranbe fucked around with this message at 18:02 on Mar 11, 2014 |
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Mar 11, 2014 17:59
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MickeyFinn posted:Why is the Atlanta Home Ownership Center currently offering $100 down payments in states that aren't Georgia, to say nothing of cities that aren't Atlanta? HUD HOCs are regional offices that handle insuring FHA mortgages and the selling of HUD homes for their area - the Atlanta office covers Alabama, Florida, Georgia, Kentucky, Illinois, Indiana, Mississippi, North Carolina, South Carolina, and Tennessee. Edit: sorry Lazarus, forgot to mention in my prior post that 20% down is a requirement to waive escrows on conventional (except CA which is 10%, yay state laws). Cranbe is correct, it's basically risk mitigation - tax liens take priority, if you don't pay the county they can foreclose over the lender and leave them with an even larger loss. Captain Windex fucked around with this message at 18:38 on Mar 11, 2014 |
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Mar 11, 2014 18:30
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Just got the inspection done. notes: new roof needed new hvac likely needed (original) new carpet floors ok but need replacement to resell same with a 1993 master bathroom pool ?????????????????????? insulation good, the house was loving freezing and it has been way warm out. he got some readings w/ his FLIR thing some minor 'you could probably tackle it yourself' drainage in the front no mold, no termite damage, but was treated for termite at some point in time because of holes in mortar no obvious leaks except a dripping toilet shutoff Neighbor was super nice guy said he had to call out nolan ryan for some olsham action. no cracks anywhere, but guy said if our bid is accepted to hire a struct engineer just to be sure. I need a good pool guy, but the pool is covered by some homebrew lumber+plastic+wire concoction that will take a lot of physical effort and possible danger to remove. It's a vinyl pool. I'm expecting to replace vinyl, pumps, maybe filter but guy said it looked newish, not original to pool. I don't know how expensive pools can get to repair or remove, like what beyond the vinyl could gently caress us over, but the deck looked fine which makes me feel better about it. I am going to sit down and work out the numbers, and I'm hoping the 203k consultant guy calls me back. My wife is adamant about firing the realtor because she doesn't trust her, and I'm inclined to agree with her. That's a whole different deal though and we can go with someone licensed to do this kind of deal, because while her office is, she's not hud licensed. I'm hoping the 203k consultant will call me back and recommend someone. Am I crazy for thinking that really doesn't sound that bad if we can get the house for low enough that we get some  instant equity when all the work is done? We don't think anyone else is looking at this home right now so a lower bid might actually be possible.
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Mar 11, 2014 18:54
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PuTTY riot posted:Just got the inspection done. notes: If you are going to force them to drop the price - make sure you get real quotes not "oh I could DIY it for this much".
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Mar 11, 2014 20:05
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Orange_Lazarus posted:According to my processor I would have to make a 20% down-payment instead of a 10% to avoid having to pay escrow, that doesn't seem worth it. My escrow payments are held in an interest bearing account so I actually earn a few pennies a month on it. I've had a house with escrow and without and I vastly prefer the escrow account. Any particular reason you don't want escrow?
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Mar 11, 2014 20:26
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FCKGW posted:I've had a house with escrow and without and I vastly prefer the escrow account. Any particular reason you don't want escrow? I am the same way. We had a chat about it a few pages ago, the main reason people want to avoid escrow is because of the chance they'll gently caress it up and lose your money, or leave you on the hook for taxes and penalties. Hasn't happened to me, but it certainly has happened to other people.
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Mar 11, 2014 20:51
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Right now I have a house and I'm doing escrow, the payment is $150 a month give or take just for my property taxes. I if had debts I would much rather use that money to put toward interest bearing debt instead of giving it to the bank to hold for 0-.01% over a year. Then you have people that want to avoid minor inflation (I know it's chump change) and/or invest that money during the year. Basically the same reason many people lower their income tax withholding so they can have more money today and pay the bill at the end of the year instead of getting a fat check to buy a TV with come tax time. I have no clue how home owners insurance is handled if you don't escrow. My guess is it would be up front or a monthly payment. To me all of that isn't worth an extra 10% down though, at least not at this time. Sephiroth_IRA fucked around with this message at 01:05 on Mar 12, 2014 |
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Mar 12, 2014 00:28
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I'm currently waiting for underwriting to go through on our mortgage (conventional). The insurance policy was sent to our lender yesterday, and the appraisal came back for the sales price. The inspection had just a few minor things to fix, but nothing at a major cost to the seller. * One window was missing a sash seal * Bathroom mirror in the basement had a crack in the corner, the inspector considered it a safety hazard * The master shower needs some caulk The sellers of the house are PCSing across the country to California, and the husband has to be there this Friday--leaving his wife and kids behind. They're anxious to be together and are hoping to move up the closing date if they can. We've only been under contract since last Sunday night, so I think we are still moving at a pretty fast pace.
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Mar 12, 2014 00:49
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I asked my loan processor this morning and haven't gotten a response yet so maybe BFC can tell me. I was told I would need a 20% down payment to avoid escrow. I don't feel that's worth it so let's say I do 10% today. Is it generally possible to get rid of escrow after that or are you stuck with your lender? I really just want to know that for educational purposes because it's going to be awhile before I decide whether or not it's worth making additional principal contributions on the new property.
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Mar 12, 2014 01:13
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FrozenVent posted:How about taxes? when I said mortgage I meant "payment"(which includes taxes)
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Mar 12, 2014 03:46
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Orange_Lazarus posted:Is it generally possible to get rid of escrow after that or are you stuck with your lender? Typically, you have to refinance to get rid of escrow. There may be some lenders who will let you drop it along the way, but you shoudln't expect that.
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Mar 12, 2014 03:52
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I need some advice or some clarification on something. After my inspection my realtor sent a repair request to the listing agent. Now she is asking me if I mind if an attorney holds the money IF they approve the repair request. My concern is if I accept that money will my lender force me to make the repairs before closing? I'd much rather buy the home and do the repairs myself/afterwards/take the time to find a contractor I like instead of with being rushed to do those repairs before closing. She keeps asking me if I mind if an attorney holds the money but I haven't even been told if they approved the repair request and how much they're offering me. I have a feeling something is amiss.
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Mar 12, 2014 15:15
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Orange_Lazarus posted:holds the money
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Mar 12, 2014 16:29
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Basically what I'm being told is "If they offer to make repairs (or partial repairs which is my guess) would you like an attorney to hold the money" and I'm thinking, um why wouldn't they just pay the repair person directly or give me the money? Why are you asking me that now when we're not even sure if they've approved repairs or not? I told her I'll hold off on answering that until I get a response on the repair request. Sephiroth_IRA fucked around with this message at 17:33 on Mar 12, 2014 |
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Mar 12, 2014 17:25
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Orange_Lazarus posted:Basically what I'm being told is I assume she means if the repair request is responded with them offering cash at closing for the amount that a quote comes back for the repairs.
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Mar 12, 2014 17:34
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Is there a reason why she would want to know that now instead of later when she's actually received an offer/decline? I just don't want to get stuck in a situation where "OK they're offering you $1000 to help cover the cost of the repair quote of $5000" and I'm contracted to take the money/use a certain contractor. I have people and family that could probably fix most of the stuff at the house for next to nothing. Man, I'm starting to really dislike realtors. I mean I get it, they're splitting 6% on a $50k house but geeze man I would treat the 50k customers just as good as the $250k customers if I was in that business. Next time I'm either going with a friend or I'll learn do everything myself. Sephiroth_IRA fucked around with this message at 17:50 on Mar 12, 2014 |
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Mar 12, 2014 17:46
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Sephiroth_IRA posted:Man, I'm starting to really dislike realtors. I mean I get it, they're splitting 6% on a $50k house but geeze man I would treat the 50k customers just as good as the $250k customers if I was in that business. Next time I'm either going with a friend or I'll learn do everything myself. Perverse incentives ahoy. Your $50k house is not 1/5th of the work of a 'typical sale' on a $250k home, but they'll take away 1/5th of the commission. I think realtors are very, very over-compensated for the amount of work they actually do.
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Mar 12, 2014 18:16
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canyoneer posted:Perverse incentives ahoy. Your $50k house is not 1/5th of the work of a 'typical sale' on a $250k home, but they'll take away 1/5th of the commission. I agree, and it's even worse in an expensive market. 6% on a "cheap" 500k house is a big loving chunk of change. Naturally the COL is going to be higher than in a cheap market so they need to get paid more, I get that. But the COL is not 5x higher than an area where 100k houses are common.
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Mar 12, 2014 18:20
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SlapActionJackson posted:Typically, you have to refinance to get rid of escrow. There may be some lenders who will let you drop it along the way, but you shoudln't expect that. I don't know if that's typical for all markets. When I bought in California, FHA, Nov. 2009, all the mortgages I was offered (through a broker) required escrow for the first year, but you could choose to shut it down after that at any time. I still use escrow because I find it convenient to make monthly payments instead of bulk payments for my insurance and taxes, but I certainly don't have to refi in order to get rid of it. And in fact if I refinanced, I assume the issuer of the new loan might require a year's escrow since it's a new loan - that was the case when I refinanced in 2011, but possibly that was just for the lender I went with on the refi. Also I saw some talk about "the bank" managing people's escrow accounts and I find that curious. My escrow is with a neutral third party, I am credited all interest earned by my money, and the escrow company is at fault if they fail to pay my taxes or something. To me, the word "escrow" is by definition a disinterested third party... if you pay your "escrow" to the bank, that's more of a prepayment than it is an actual escrow account. Now, it is true that my bank collects the escrow money from me, since I use a direct transfer monthly of the full amount (principle, interest, escrow), but they immediately send it to the escrow company who keeps it in trust on my behalf. I believe the bank pays the escrow company's fees. Maybe the laws about escrow are different from state to state, though.
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Mar 12, 2014 18:55
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Sephiroth_IRA posted:I asked my loan processor this morning and haven't gotten a response yet so maybe BFC can tell me. I'd be a lot more concerned with being able to avoid pissing away hundreds of dollars a month on PMI or MIP insurance by having 20% down then anything escrow related...
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Mar 12, 2014 21:01
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Fancy_Lad posted:I'd be a lot more concerned with being able to avoid pissing away hundreds of dollars a month on PMI or MIP insurance by having 20% down then anything escrow related... That was my primary concern a few weeks ago and I got a loan at my credit union that doesn't have PMI. It required 10% down which is what I'm paying. I have never heard of MIP before but a little reading suggests that only applies to FHA loans with a down payment of 3.5% or less? I also don't think PMI is that expensive unless you're buying a really expensive property or something. I paid PMI on my last house and I think it was literally only $15 bucks a month. canyoneer posted:Perverse incentives ahoy. Your $50k house is not 1/5th of the work of a 'typical sale' on a $250k home, but they'll take away 1/5th of the commission. How difficult is it for a person to become their own realtor? I've heard it only costs like $100 bucks or something to create a corporation and that would mean (I guess?) I could use that as a proxy so the seller wouldn't no I was representing myself. Sephiroth_IRA fucked around with this message at 23:53 on Mar 12, 2014 |
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Mar 12, 2014 23:45
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Sephiroth_IRA posted:How difficult is it for a person to become their own realtor? I've heard it only costs like $100 bucks or something to create a corporation and that would mean (I guess?) I could use that as a proxy so the seller wouldn't no I was representing myself. Most realtors are basically part of a oligarchy/mafia type organization. Getting your realtors license is easy, but what you really need is membership to your local circle jerk society of realtors, which typically means 1-2 years spent working as their bitch. If you're not a member of the secret society, you don't get the same privileges and access that they do, and they basically will direct their clients to anyone but you. Realty is the last bastion of the most corrupt sort of crony capitalism in the US. You are getting hosed with a realtor taking a percentage of the sale proceeds, this is not in question. Are you less hosed than trying to fight their organization? Hard to say.
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Mar 12, 2014 23:59
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Leperflesh posted:When I bought in California, FHA, Nov. 2009, I don't have any experience with FHA loans, but I've done several conventional purchases and refis. In all cases the existance of the escrow account or lack thereof was written in to the legal note. It was either in or out. No time based or other criteria for removing it if it was in the note.
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Mar 13, 2014 01:42
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