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Boof Bonser posted:Please forgive if this has been asked a million times but what kind of closing costs can I generally budget for? (I'm in CA if that matters.) I've been hearing ~$9,000 on a $250,000 house but that seems high. Let me know if you want the name of a good reputable mortgage wholesaler in San Diego. Guy was also my realtor and have refinanced through him once and am evaluating doing it again. My closing costs for a re-fi of $460k with around .6 LTV is around $3600.
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Jan 22, 2016 04:40
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QuarkJets posted:If you disagree, then I think we should make a thread in D&D to talk about it. Because this is a topic that interests me but it is starting to veer away from relevancy to the thread. QuarkJets posted:lol at the Just Cause fallacy that you threw in there  No, I'm good. We can stop talking about it.
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Jan 22, 2016 04:44
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Boof Bonser posted:Please forgive if this has been asked a million times but what kind of closing costs can I generally budget for? (I'm in CA if that matters.) I've been hearing ~$9,000 on a $250,000 house but that seems high. The best way to find out is to go talk to a lender and get their estimate of what closing might cost. Any lender should be willing to provide this information on demand, even if you're not on the cusp of buying something. Note the fine print at the bottom: bankrate's numbers exclude "title insurance, title search, taxes, property insurance, association fees, interest and other prepaid items." I'm not sure why they chose to exclude all of this extra stuff, but it can add up to a lot (probably not an additional $5k, though). It also looks like they didn't include homeowner's insurance on that list, and I believe it's pretty standard to have to pay something toward that at closing. e: On closer examination, they at least include inspections but possibly not all of the inspections that a house usually needs, although that can change on a case-by-case basis QuarkJets fucked around with this message at 05:09 on Jan 22, 2016 |
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Jan 22, 2016 04:55
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QuarkJets posted:The best way to find out is to go talk to a lender and get their estimate of what closing might cost. Any lender should be willing to provide this information on demand, even if you're not on the cusp of buying something. I'm assuming they exclude those because those are actually part of the cost of ownership rather than cost of closing? But yes, you should pay attention to them. Actually I'm not sure about the title insurance/search part. Ours was included in our lawyer's fee. edit I'm also pretty sure it wouldn't bump it from 1.5% to 3.6% of purchase price. Rurutia fucked around with this message at 05:01 on Jan 22, 2016 |
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Jan 22, 2016 04:56
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Rurutia posted:I'm assuming they exclude those because those are actually part of the cost of ownership rather than cost of closing? But yes, you should pay attention to them. No, I mean costs that you have to pay in order to close, specifically, rather than the continual costs that you pay every month thereafter. Title search and title insurance are paid at closing or are prepaid You usually have to pay some amount of interest, the amount depends on your closing date It's extremely common to have to pay a bunch of money toward insurance in order to close (a year of premiums in a lot of places) Most states have taxes that are only paid at closing, such as transfer taxes, which bankrate chose not to include (this is not the same as the Tax Service fee, which is the fee charged to make sure that your yearly property taxes are being paid correctly as part of your typical payments)
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Jan 22, 2016 05:07
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Right, I'm referring to the interest, insurance, property tax advance, association fees and prepaids, because those are credits towards the recurring costs so are effectively costs are ownership. You pay them at closing, but they're not a cost of closing. Does that make sense? I'm not sure about the title search and insurance as I said, mine was included in my lawyer's fee. I also wasn't aware of the transfer tax thing, we didn't have one and reading about CA transfer taxes it sounds like it's a seller paid item, but I'm not sure. edit In any case, the transfer tax looks like it's 0.11% in CA? Title search and insurance is like $400. It shouldn't bump up the % estimate much in any case. Rurutia fucked around with this message at 05:17 on Jan 22, 2016 |
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Jan 22, 2016 05:15
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If you can't move in before paying it, then it's a closing cost. It is a cost that you pay at closing. $400 for title. $275 for transfer tax (on a $250k property). Roughly $1000 for insurance and $200 in escrow fees. We're talking about $2k in additional costs over the bankrate estimate of less than $4k. That's a lot
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Jan 22, 2016 06:31
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Thanks for the info. Are these fees generally paid to various entities, through an escrow service, or to the actual lender? It would be pretty sweet to just roll them into the loan but I'm not sure if that's allowed because it would result in the bank giving a loan for about $4,000-6,000 more than the property is worth and banks don't tend to like being under-secured.
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Jan 22, 2016 06:37
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Boof Bonser posted:Please forgive if this has been asked a million times but what kind of closing costs can I generally budget for? (I'm in CA if that matters.) I've been hearing ~$9,000 on a $250,000 house but that seems high. What type of loan are you getting? VA loans and some other types have higher origination fees and require pest/mold inspections that other types of loans do not. The sellers have to pay for many of the inspections for a VA loan. The city you are in has a big impact on closing costs. I paid 1.2% in city transfer taxes, but if I was in the next city over it would be 1.7% that. Most smaller or more rural cities do not have a transfer tax. Does the city or county have any additional taxes or inspection requirements? The only thing you can really control is the time of the month that you close. It makes a small impact on the amount of interest. I think it was $500 difference between closing on the 5th, vs the 30th of the next month for me, with closing near the end of the month being cheaper. You can possibly shop around for a the title search and insurance I would get a GFE from a lender that breaks down what all of the closing costs are and then you can see if they are individually higher than normal. With a VA loan you can go over 100% LTV and roll the costs into the loan.
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Jan 22, 2016 07:35
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So, the Home inspection found that the owners finished the basement but didn't get a county permit. Now, they are refusing to build a egress window so the deal will probably fall through. Our original scummy lender ordered the VA appraisal about ten days ago, and now say it's too late to cancel. Should we pay for this appraisal that we don't need anymore? We were going to use another lender anyway, what if we don't pay for the appraisal?
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Jan 22, 2016 07:44
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lampey posted:I would get a GFE from a lender that breaks down what all of the closing costs are and then you can see if they are individually higher than normal. One thing to note is that the GFE no longer exists, it along with the TIL and HUD-1 were replaced with 2 new disclosures - the Loan Estimate that you'll receive initially and the Closing Statement that you have to receive at least 3 days before the loan closes. The CFPB mandated the use of the new disclosures starting in October to cover the same information all in one document and make it easier for borrowers to understand features of the loan as well as compare the initial figures to final figures as they're pretty similarly formatted. As for the VA appraisal - do you know if they've actually gone out and done the inspection already? I'm not familiar with VA appraisals specifically, but at my bank for conventional loans you could cancel at any point up until the appraiser actually went out to the property and no charge was made. You could even cancel between the inspection and the report being completed, but the appraiser would charge a trip fee of ~$150 or so. Generally appraisals can also be transferred between lenders though a fee may be charged (sorta, it's not actually transferred but functionally it's close enough), however VA loans have some weird requirements with regard to their appraisals so I'm not sure what options are really available to you.
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Jan 22, 2016 08:14
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Boof Bonser posted:Thanks for the info. Most of the fees are paid to escrow directly. Some might not be; for instance, you might just cut your inspector a check instead of charging through escrow. YMMV. Some loans let you roll closing costs into the loan. Sometimes banks will even cover the closing costs if you're buying a foreclosure from them and also using them for your loan. If you're doing a conventional loan, then you're just going to have to pay for them yourself unless you can get the seller to pay for them; closing cost concessions is one of the few ways to get compensation from the seller while not upsetting your lender. Ideally you should be paying at least 20% down anyway, so it's not like having to pay closing costs is much more than that
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Jan 22, 2016 09:05
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intervoid posted:I originally put 5%. So LTV is still ~95%. My house is about in the middle of the road price-wise for my neighborhood. I asked if there were any additional costs, and he said the only cost for me is the closing, which would be ~$2200. I understand the extending payments, hence putting skip in quotes.
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Jan 22, 2016 13:01
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DaveSauce posted:So far the only places I've checked for mortgages are our credit union, and a bank recommended by someone at work. It would be foolish not to check zillow given the amount of money at stake. You may not find anything better but there's a good chance you will for almost 0 effort.
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Jan 22, 2016 13:55
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Andy Dufresne posted:It would be foolish not to check zillow given the amount of money at stake. You may not find anything better but there's a good chance you will for almost 0 effort. That's great and all, but if I do find better rates/closing costs, how do I separate the scummy BS from the legit offers?
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Jan 22, 2016 14:25
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Why would you think there's scummy stuff on Zillow? Tons of us in this thread have used it and I haven't heard a single horror story.
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Jan 22, 2016 14:30
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Andy Dufresne posted:Why would you think there's scummy stuff on Zillow? Tons of us in this thread have used it and I haven't heard a single horror story. Being a big website on the internet that relies on advertising dollars, I just assumed that they perform no vetting, so Bob's Discount Mortgages can advertise super low costs and then jack everything up at the last minute. If that's not the case then I have no problem checking it out. It's totally an assumption on my part.
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Jan 22, 2016 15:15
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Zillow mortgages is a referral service for the banks. Many of them show exact dollar figures for closing costs without requiring any identifiable information from you. They also have reviews so you can see how the bank did service wise. I used Aimloan and I am pretty happy overall. They were not lightning fast but I closed on time.
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Jan 22, 2016 15:33
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It's fair to be skeptical, but Zillow is getting paid off the referral fees, just like a realtor would if they had referred you to your bank or credit union. If you go directly nobody gets those fees but it doesn't alter the price. For better or worse the industry is tightly regulated. Good faith estimates carry a lot of weight. You should have these from the other lenders you've worked with already. eta: I also used Aimloan, no problems with a quick closing.
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Jan 22, 2016 15:35
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Dik Hz posted:Sounds fishy to me. Get the full loan sheet. This guy has got to be making money either at your expense or the bank's expense. Also, check zillow for current rates. He might be making money by getting you to sign for note above the current rate. It does seem like rates are a bit lower on Zillow, but the rate he is offering me is the same rate I already have... hmm. If things check out (aka no additional hidden costs), does this seem worthwhile?
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Jan 22, 2016 17:47
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You could always take that bid back to your original lender and ask why he's charging you so much in closing costs. They have the option to waive some of those.
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Jan 22, 2016 17:49
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After reading and being inspired by this thread I got a few quotes and the cheapest one so far on 30-year fixed is through Consumer Direct Mortgage 3.75% 0 points total of $1,221 in costs including appraisal, attorney's fees etc. Currently I'm at 4.625% so its about a 20% discount to my current rate. I've been in this house for 23 months and owe $220K on an estimated value of $280K so this looks like a pretty good deal IMO. I should have been more aggressive shopping rates when I purchased but the builder was offering a lot of incentives to finance through their originator. heated game moment fucked around with this message at 18:53 on Jan 22, 2016 |
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Jan 22, 2016 18:47
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Is there any way to find out ahead of time which servicer a lender uses? I've had to deal with Ocwen a number of times for work and they are loving horrible. I want to avoid them like the plague.
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Jan 22, 2016 23:10
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Boof Bonser posted:Is there any way to find out ahead of time which servicer a lender uses? I don't know however it actually doesn't matter because they get sold all the time, mine changed a few months ago, it's annoying as poo poo and their terrible site doesn't work on Chrome at all. The bank my brother went with services all their own loans so the servicer never changes, which is pretty great, I don't know how common that is though.
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Jan 23, 2016 00:14
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My spouse and I have decided we'd like to buy a home. We're first-time homebuyers and could use some guidance. I know we can walk into a bank and ask for a pre-qual, and we will likely do that soon (we're also looking into taking some homebuyer education classes). What I'd like to know is 1) What's our credit score now? Credit Karma puts us both in the 660 range, but I know that number is notoriously inflated. Will the lender run a full credit report before saying we're pre-qualified? Should we buy our scores from a bureau/all 3/FICO now and work on improving our scores before we apply for a pre-qual? I had a bankruptcy discharged in 2009, hoping that won't pose a problem. Also 2) how is DTI actually calculated? We have a few credit cards, one car payment, and one consolidated student loan in ICR between us (plus rent, phones, car insurance x2). Do we just add up the minimum payments for all the debt and divide by our monthly gross? Do phone/auto insurance/utility payments count? Does rent count? Also also 3) how do we find out whether we're eligible for down-payment assistance programs? Grants? We grossed ~$60,000 last year in a county with a 2015 HUD median income limit of $77,000.
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Jan 23, 2016 05:33
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Wow, there's a lot going on there, maybe you should start your own thread. How much money do you have saved up so far and what are your expenses right now? Why is your credit score in the basement?
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Jan 23, 2016 06:27
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slap me silly posted:Wow, there's a lot going on there, maybe you should start your own thread. How much money do you have saved up so far and what are your expenses right now? Why is your credit score in the basement? We're doing quite well now: both employed in stable full-time desk jobs, getting yearly raises, and have made on-time payments for everything for the past 12+ months. We just got married last July, although we've had joint finances for a little under 2 years. It may take several months to rehab our credit to conventional-approval level, but I think 650 is enough to qualify for alternative programs? At any rate, we'll keep renting for as long as it takes to get in shape. We don't care about getting a great rate, we just want to qualify without having to go the shady private mortgage route. If I'm calculating our DTI correctly (including rent, car payment, student loan, and minimums on all cards divided by gross income) our DTI is below 25%. Google seems to think that's really good.
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Jan 23, 2016 07:56
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For your credit, go to https://www.annualcreditreport.com/index.action first. You won't get the score, but you can get a free report from each bureau once per year. How much cash do you guys have saved?
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Jan 23, 2016 13:12
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A few thousand, we're hoping that we can get some down payment assistance and only have to put in <$2000 into the transaction though. Maybe through the SONYMA program, which is NY specific.
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Jan 23, 2016 15:57
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martyrdumb posted:A few thousand, we're hoping that we can get some down payment assistance and only have to put in <$2000 into the transaction though. Maybe through the SONYMA program, which is NY specific. Is there a reason this is so pressing? Why does this have to happen now? Even if you're able to get a very low down payment loan, there are closing costs, maintenance that needs to be done right when you get a house, painting, furniture, etc. Buying a house, especially a first house, is really expensive. If you go in with basically $0 of savings (or negative savings, with credit cards and loans and such, which sounds like it may be the case), then best case, you're in for a tough few years of being house poor and on edge hoping nothing breaks. Is there a reason you can't save for a year or two and buy a house then? It would give both of your credit scores time to come higher (though if they're what CK says they are, you'll be able to get a loan, it just might be an expensive one). It would give you both more time at your jobs. Depending on what the price range of houses around there is, you might be able to save enough to avoid PMI, or at least to have it for a shorter period. Even if you can't avoid PMI, having a larger down payment lets you do a conventional loan (instead of FHA or something similar), which tend to have lower interest rates, and don't need a refi to get out of PMI. It also gives you a cushion if you need to move in a down market. There's a lot of reasons waiting a few years would be a good thing. Only you can decide if your reason for not waiting outweighs all of that. Grumpwagon fucked around with this message at 16:27 on Jan 23, 2016 |
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Jan 23, 2016 16:12
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martyrdumb posted:minimums on all cards Regarding down payment, FHA loans have gotten rather expensive because of the insurance costs. The NY program you mentioned is just a way to take out more loans or increase your interest rate, and has complicated restrictions. These are a terrible idea for you because you can't even pay off your credit cards. Am I saying that too strongly? Rein in your excitement a little bit and figure out a 2-year or 5-year financial plan that gets your cards paid off, loan balances reduced, and money in savings so you'll be able to revisit the house idea from a stronger position. martyrdumb posted:We don't care about getting a great rate slap me silly fucked around with this message at 17:20 on Jan 23, 2016 |
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Jan 23, 2016 17:08
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So question on Zillow mortgages: What's included in their fees they show? Some show as low as $88....so I'm going to go ahead and call BS on that. The 2 places we're looking are more or less listing the following as part of closing costs (not including insurance/tax/etc stuff paid in advance): Origination fee Appraisal Fee Credit Report Fee Tax Service Fee Flood certification fee Closing/Escrow fee Lender's title insurance Owner's title insurance Mortgage recording charge The origination fee alone is on the order of $2,000 (for a $330k house), and the rest of the fees add up to something on the order of another $2,000. So which of the above fees are included in the number shown on Zillow, and which ones will I need to account for at closing?
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Jan 23, 2016 17:27
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Grumpwagon posted:Is there a reason this is so pressing? Grumpwagon posted:Even if you're able to get a very low down payment loan, there are closing costs, maintenance that needs to be done right when you get a house, painting, furniture, etc. Grumpwagon posted:Is there a reason you can't save for a year or two and buy a house then? slap me silly posted:Buying a house when you can't even pay off your credit cards is just not a good plan. I'd say hold off on getting invested in this idea until your credit is better and you have some money saved up. Thanks for the FHA info, that is a program I know almost nothing about. martyrdumb fucked around with this message at 01:00 on Jan 24, 2016 |
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Jan 23, 2016 18:31
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Oh, good, I was imagining huge amounts of loans and things. Downpayment assistance and FHA loans are just bigger loans, often at higher rates or with extra expenses and obligations attached. That's a bad idea for reasons that have been discussed a lot in this thread, mostly that you pay more than necessary at the same time put yourself at much higher risk of being underwater on the loan and unable to sell. Grants - I know less about this in general, but the NY one you mentioned was for a tiny amount of money ($3000 max) and had obnoxious terms. There just isn't free money out there for poor people to buy houses - either you have to have the money yourself, or you have to sell your soul to the company store. Maintenance costs - this web page is a little simplistic but gives some food for thought maybe. Hundreds of dollars a month, anyway. It's also very possible that something will unexpectedly gently caress up right after you move in that will cost you a couple thousand to fix. Happened to me. I'm ignoring your DTI question because how big of a loan the bank will give you is completely irrelevant. You need to figure out what your financial position can support and work from there. If you can truly afford to buy a house, DTI isn't going to be an issue. Of course that is just my personal opinion about what it means to afford something 
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Jan 23, 2016 20:04
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martyrdumb posted:What would be a reasonable budget for maintenance? We are not looking for a fixer-upper. We own an apartment full of furniture already. Painting is cosmetic/optional. Oh, we noticed a pipe leaking in the back of the kitchen sink but we can't afford the $900 to fix the problem this month. Next month rolls around and we can finally get a plumber out, but hey, now there's mold growing inside the back kitchen wall because of all the water. It's $3k for mold remediation and then we'll have to replace all the kitchen cabinets and the tile backsplash because they need to rip out all the moldy drywall and the mold got into the cabinets. Also there's mold in some of the food we had in the cabinets, need to replace all that. Oh and the standing water seeped down into the subflooring and if we don't rip out the linoleum and replace the boards it'll just rot all the way down through the floor and AHHHHHHH If you don't have at least a few thousand dollars laying around to fix problems instantly as they come up, you risk getting into a terrible terrible situation with your house. Don't do it. Have a solid buffer because you are going to spend money on your house, it's not if, just a matter of when.
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Jan 23, 2016 21:32
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Unless you buy a fixer upper, and then "if" doesn't exist and "when" is "always". I'm going to go replace a kitchen faucet now, be back later.
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Jan 23, 2016 22:08
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martyrdumb posted:We are not looking for a fixer-upper. The Tread Title posted:Joke's on you, ALL houses are money pits. Case in point: Guy at work just bought a house. Inspection went fine. A week goes by, he discovers standing water in his crawl space. During inspection, it was only slightly damp, so the inspector assumed it was a small leak or something...turns out it's lovely drainage, and once the rain picked up it was fairly evident. Further, previous owner tried to fix it on the cheap, so while they "knew" about the problem, they "fixed" it so they're not liable. $3500 turns in to $1500 because he got a handyman (same one who fixed it previously) to do it on the cheap. Yup. And then 2 ago, he wakes up to the smell of gas. Turns out while fixing the crawl space, contractors might have hit a gas line. Nobody knows for sure, but he had to get that fixed immediately of course. And while getting it fixed, he finds out his heater was never serviced, as evidenced by the original instructions, still in the plastic bag mere inches from a flame source. The plastic bag was partially melted, of course...could have been a real bad fire. So in less than 3 months, he had to spend over $2000 to fix existing problems on a house that the inspector said was just fine. Don't forget about roofs...seems like every house we've been interested has a roof that is nearly due for replacement. DaveSauce fucked around with this message at 23:19 on Jan 23, 2016 |
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Jan 23, 2016 23:06
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DaveSauce posted:So in less than 3 months, he had to spend over $2000 to fix existing problems on a house that the inspector said was just fine. I'd think you were talking about me, except that it was a completely different set of problems that I spent over $2000 in the first three months on for a house that the inspector said was just fine.
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Jan 23, 2016 23:09
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DaveSauce posted:Don't forget about roofs...seems like every house we've been interested has a roof that is nearly due for replacement. Also, my garbage disposal exploded three days after closing. Literally exploded. The blades in it "liberated" according to the plumber. That was $600. Do never buy.
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Jan 23, 2016 23:25
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martyrdumb posted:Missed paymenst after a bankruptcy, crappy credit score You are going to need to wait until th BK or the subsequent derogs are off of your credit report. Missed payments AFTER a banko is an automatic turndown for every underwriter I have ever met. Unless your score improves enough for a computer generated approval nobody will underwrite you until those drop off. therobit fucked around with this message at 00:34 on Jan 24, 2016 |
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Jan 24, 2016 00:12
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