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Drunk Tomato posted:Is it weird to contact a guy who flipped my house twenty years ago? I got his name from public permits, and it looks like he runs some sort of construction company now. Who cares if it's weird? It's not illegal or anything.
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Oct 12, 2017 20:15
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Drunk Tomato posted:Is it weird to contact a guy who flipped my house twenty years ago? I got his name from public permits, and it looks like he runs some sort of construction company now. The first call isn't weird at all, though if they don't reply that's it.
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Oct 12, 2017 21:00
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So I have what might be a pretty stupid question, but I am also considering buying a house, so that makes me stupid anyway. Basically there is this house I like, it's new construction and it's the closeout build for a neighborhood. It's been on the market for approximately 65 days, best guess is no one bought it because 1. It was an inventory home. 2. Construction was blaring all around it from other builders when it first went on the market as in there were 5 active builds with no more than slabs and a couple frames when they listed it. Original list price was $335,000 which is about mid-to-high for the neighborhood it's in, but it's also one of the bigger houses/lots in said neighborhood. Base price for the house was 285K, builder put in ~40K in options/upgrades i.e. hardwoods, covered patio etc. Now to the question... If I get an appraisal for the bank/loan at say 335K, but my purchase price is only 299,000 does that instantly give me that 11% in LTV for the mortgage? So If I then put the additional 9% down in cash does that satisfy the "20% down" requirement to avoid PMI or is the purchase price the value base for the bank and I'd need to put down ~60K? Idk why I never thought about that before, but it has me curious if I will be able to save 30K on the downpayment and put that towards furnishing and such.
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Oct 13, 2017 14:34
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No. The "V" in LTV is always the lower of the purchase price or appraisal. If you buy it for $299K, you'll need to put down $59.8K to hit 80% LTV.
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Oct 13, 2017 14:50
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SlapActionJackson posted:No. The "V" in LTV is always the lower of the purchase price or appraisal. If you buy it for $299K, you'll need to put down $59.8K to hit 80% LTV. Hey thanks. Stupid question indeed. I thought some states required appraised value for the LTV calculation, but as I read it I guess maybe that's just NY. Guess I'll be dropping boat loads of cash and my home theater/golf sim can wait 
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Oct 13, 2017 15:17
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SlapActionJackson posted:No. The "V" in LTV is always the lower of the purchase price or appraisal. If you buy it for $299K, you'll need to put down $59.8K to hit 80% LTV. You can roll the furniture into the purchase price and use the money as down payment to sort of achieve the same result. This may require a motivated builder but most seem to be fully able to do creative scammy purchase agreements. This may or may not be completely fannie freedie conforming. Heh.
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Oct 13, 2017 15:20
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Elephanthead posted:You can roll the furniture into the purchase price and use the money as down payment to sort of achieve the same result. This may require a motivated builder but most seem to be fully able to do creative scammy purchase agreements. This may or may not be completely fannie freedie conforming. Heh. You definitely can't do this in TX, and I'd be surprised if it flew anywhere these days. Anything not permanently attached to the house isn't real property and can't be foreclosed on, meaning the bank doesn't have as much of a security interest as the contract nominally suggests.
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Oct 13, 2017 15:35
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Homebuying adventures, halfway into a 30 day escrow: 1. Bank's home appraisal came back 3% lower than the contract price and 2.3% lower than the listing price. Bank tells me I need to put in more down, due to LTV, or rates will go up 1/8%. 2. Bank tells me that initial underwriter approval has not yet been achieved, despite already having a loan estimate and rate lock. ETA is next Tuesday/Wednesday. Our purchase contract tells us we should remove loan contingencies by Monday, which is prior to that. 3. Bank further tells me that final loan approval will only be a week after that. That will be more than 7 days past our theoretical loan contingency removal. My (buyer's) real estate agent is telling me there's nothing to worry about. I'm in a state of mild panic.
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Oct 13, 2017 18:30
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It's common to request the sellers extend the contingency deadline if you have some explanation and a new time estimate: this is usually better for the sellers, then losing the sale.
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Oct 13, 2017 20:02
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Mandalay posted:Homebuying adventures, halfway into a 30 day escrow: If I recall correctly our financing contingency was set to the same day the bank had to give us our final mortgage disclosures, which is 3 days before close if I recall correctly. Ask for that. Do not remote the contingency willy nilly. All three of those things are normal. Number 2 we had to ride our lender for daily underwriting updates because they didn't see fit to forward them to us as they came in.
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Oct 13, 2017 20:33
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Hahaha my appraisal came in 20% under my offer. So we'll see what happens, I guess. That's such a huge gap, I don't even know if it's good or bad. Probably terrible.
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Oct 13, 2017 20:54
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thebushcommander posted:Hey thanks. Stupid question indeed. I thought some states required appraised value for the LTV calculation, but as I read it I guess maybe that's just NY. Guess I'll be dropping boat loads of cash and my home theater/golf sim can wait You can have a certain amount of seller assist for the closing costs and depending on your state laws you can go above your actual closing costs and prepay your property taxes and insurance into escrow, or pay points on your mortgage to get a better rate. Also with new construction it is common to get a seller credit or rebate at closing, but again it depends on your state laws. You can ask your agent to lookup what rebates recent buyers are getting from new construction in your area but it can be hard to find out otherwise. The contract and net sale price is something that is supposed to be recorded but a lot of times you have to call the previous buyers agent.
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Oct 13, 2017 21:17
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totalnewbie posted:Hahaha my appraisal came in 20% under my offer. So we'll see what happens, I guess. That's such a huge gap, I don't even know if it's good or bad. Probably terrible. The bank is going to say "hey wtf man" and that's never good.
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Oct 13, 2017 21:43
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QuarkJets posted:Probably terrible. The bank is going to say "hey wtf man" and that's never good. Yeah, I know. I'm just waiting to see how much the sellers are willing to lower it by. Hey, maybe they lower it by the whole 20% and I get a cheaper house  /sigh we'll see
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Oct 13, 2017 21:48
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Our bank is asking us to pay $1,500 in points to make up for the appraisal being 3% lower than the contract price. I told them I can go to Wells who offered me the same rate/no points, and bank said there's nothing we can do, their appraisal will come back lower too. Ffffffff The crazy thing is that there's another house down the street that sold for 10% more per sq ft with the same number of bedrooms literally 0.08 miles away, 3 days after our contract was signed. totalnewbie posted:Yeah, I know. I'm just waiting to see how much the sellers are willing to lower it by. Hey, maybe they lower it by the whole 20% and I get a cheaper house Did anybody else bid on the house? Good luck Mandalay fucked around with this message at 01:59 on Oct 14, 2017 |
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Oct 14, 2017 01:56
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totalnewbie posted:Hahaha my appraisal came in 20% under my offer. So we'll see what happens, I guess. That's such a huge gap, I don't even know if it's good or bad. Though a family member just bought a place. The appraisal came in 2-3% below the accepted offer, and they just agreed to drop the selling price to match. So there is a (very small) chance you got yourself a 20% discount.
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Oct 14, 2017 03:00
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Mandalay posted:Our bank is asking us to pay $1,500 in points to make up for the appraisal being 3% lower than the contract price. I told them I can go to Wells who offered me the same rate/no points, and bank said there's nothing we can do, their appraisal will come back lower too. Ffffffff I know this is a lovely situation for you, but your bank is doing what every bank would do. LTV is hugely important to them (and *cough* their ability to sell your mortgage), and they don't bend on those. That's part of the reason why most contracts allow you to back out of the entire sale if the house appraises low. I'm a guy who also had to bring extra cash to closing for a low appraisal. If you want to look at it in a positive light that cash is still going towards the house, it isn't lost as a fee to some bank.
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Oct 14, 2017 03:27
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If the appraisal comes back low doesn't that mean your offer is too high?
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Oct 14, 2017 04:37
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There's always an argument to be made that the appraisal is just wrong. But generally yeah, you probably just offered too much
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Oct 14, 2017 06:14
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In a moving market houses will appraise low because they go off past sales. If no houses appraised low home prices would never go up. Fwiw I paid $8k or so over appraisal, and the house would now appraise $20k higher 2 years later.
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Oct 14, 2017 11:14
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Got a call from my realtor; the sellers won't lower the price at all. My offer wasn't even the highest. Chances are I won't end up buying the house, which is really a shame because it was pretty perfect for me. But 20% is a lot to make up.
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Oct 14, 2017 16:06
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20% is... not quite the biggest gap I've ever heard of, but it's close. It really sucks to get this close and have this happen, and you probably will be tempted to talk yourself into paying 20% more, but it's probably wisest to just move on.
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Oct 14, 2017 16:18
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Yeah, I will. Which means I have to look for a new house, now. Dang. edit: also out a thousand dollars. Some bullshit :/
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Oct 14, 2017 16:46
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You can always bump the down payment to meet the required LTV, right?
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Oct 14, 2017 16:48
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You could, but I would hope you're working with some information that the appraiser isn't to make that jump
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Oct 14, 2017 16:53
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I don't think I mentioned, 20% is 70k. Pretty sure the mortgage company isn't going to give me a loan on a 350k house that has a 280k appraisal. Even if I get another appraisal and it comes back 320 or something, I don't have enough to make up the difference. So it's pretty much not going to happen. Too bad, I really like the house 
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Oct 14, 2017 17:12
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This is why you never fall in love with a house.
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Oct 14, 2017 17:54
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couldcareless posted:This is why you never fall in love with a house. Or be so used to disappointments in love that this is just familiar and comfortable  But seriously though, yeah, I just need to keep a cool head and start texting my realtor about other houses.
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Oct 14, 2017 18:06
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totalnewbie posted:But seriously though, yeah, I just need to keep a cool head and start texting my realtor about other houses. Has your realtor offered an explanation for why he suggested an offer so far above where it appraised? Or has the appraiser explained why it appraised so low? The appraisal is negotiable if you can find comps (excluding FHA/VA specialty loans), which is something your realtor should be bending over backwards to help you with right now. 20% is a huge margin for them to be off.
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Oct 14, 2017 18:22
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H110Hawk posted:Has your realtor offered an explanation for why he suggested an offer so far above where it appraised? Or has the appraiser explained why it appraised so low? The appraisal is negotiable if you can find comps (excluding FHA/VA specialty loans), which is something your realtor should be bending over backwards to help you with right now. 20% is a huge margin for them to be off. He said that his offer wasn't even the highest. Appraiser done goofed. Or the appraiser is the brother of someone who offered at $280,000 
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Oct 14, 2017 18:27
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Even with comps, it's at the top end. I don't think other appraisals will come in at 350, which is what I would need them to. 320, 330, maybe, but even then I don't really want to throw another 20k in cash at it and the sellers are completely unwilling to budge on the price. My realtor's opinion is also that 350 was high and he told me so before I made the offer. While I'm sure he also wants this deal to go through, his opinion is what I said above. He did say that 280 is stupid low and I agree, but the sellers had received another offer of 20% down/more money with some contingencies while mine was 5%/not as much (though I doubt it was that much lower) with no contingencies. If the sellers really aren't willing to negotiate even a little bit then I'm not really interested in shelling out another 500 bucks for an appraisal to tell me that I need to give another 20k outside of the loan.
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Oct 14, 2017 18:34
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totalnewbie posted:350k ... with no contingencies. Uh, what? What market are you in that commands that low a price and no contingencies? Have you considered your realtor might be high?
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Oct 14, 2017 18:45
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H110Hawk posted:Uh, what? What market are you in that commands that low a price and no contingencies? Have you considered your realtor might be high? Sorry, I think that's the wrong word to use. Maybe "conditions" was a better word.
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Oct 14, 2017 18:52
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Ugh. We put our house on the market and got a full price offer within a few days. Standard stuff, 3 days to secure financing, 14 days to do inspection, 30 day close. After two weeks, the guy asked for a four day extension to get the inspection done, with keeping the same closing date. We say fine. The now 18-day window to do the inspection ended on Friday. Thursday night we get told that he can't secure financing and he intends to pull out of the deal. We say gently caress that poo poo, he had three days to secure it per the contract, what's going on. We demand a letter from his bank saying he was denied. The letter comes in, and it's clear he just wrote it in MS Word and sent it over, so our realtor is trying to get to the bottom of it. This basically cost us a wasted three weeks and will now cause us to have to make another mortgage payment. In short, that buyer can go gently caress himself.
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Oct 14, 2017 19:36
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totalnewbie posted:Sorry, I think that's the wrong word to use. Maybe "conditions" was a better word. Usually "no contingencies" means waiving the inspection, appraisal and financing clauses
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Oct 14, 2017 19:44
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Drunk Tomato posted:Usually "no contingencies" means waiving the inspection, appraisal and financing clauses Yeah, I realized that after H110Hawk had a minor stroke  That's not what I meant at all.
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Oct 14, 2017 19:49
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totalnewbie posted:Yeah, I realized that after H110Hawk had a minor stroke I am always on the lookout for stories for the BWM thread (RIP).
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Oct 14, 2017 20:20
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I'm sorry I wasn't able to contribute more to these forums
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Oct 14, 2017 22:16
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Omne posted:Ugh. We put our house on the market and got a full price offer within a few days. Standard stuff, 3 days to secure financing, 14 days to do inspection, 30 day close. After two weeks, the guy asked for a four day extension to get the inspection done, with keeping the same closing date. We say fine. The now 18-day window to do the inspection ended on Friday. Thursday night we get told that he can't secure financing and he intends to pull out of the deal. We say gently caress that poo poo, he had three days to secure it per the contract, what's going on. We demand a letter from his bank saying he was denied. The letter comes in, and it's clear he just wrote it in MS Word and sent it over, so our realtor is trying to get to the bottom of it. This basically cost us a wasted three weeks and will now cause us to have to make another mortgage payment. 3 days to secure financing as in 3 days to apply for a loan and get a pre-approval letter, probably. No one can get loan approval in 3 days. It took our bank about 50 days, on a 60 day purchase agreement
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Oct 14, 2017 22:36
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Andy Dufresne posted:I know this is a lovely situation for you, but your bank is doing what every bank would do. LTV is hugely important to them (and *cough* their ability to sell your mortgage), and they don't bend on those. That's part of the reason why most contracts allow you to back out of the entire sale if the house appraises low. I'm a guy who also had to bring extra cash to closing for a low appraisal. The $1,500 in points sure feel like "a fee to some bank." Unless you mean you put down more in your down payment?
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Oct 14, 2017 22:50
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