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El Mero Mero posted:/\/\/\/\It sounds like the poster's agent submitted the offer, but the seller's agent didn't transmit the offer to the homeowner, which, in the case of a seller's agent there's an actual contract usually in place with the listing agent or their brokerage. Oh I misread it. Yeah the sellers should offer to settle the matter for the spread of the sale price between the better offer and what they accepted. Makes them whole. Don't say or imply they won't make a complaint, only that they will not take it up in small claims court. Then make a complaint.
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Mar 8, 2021 05:32
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Sorry, I was kind of rambling. We had not technically submitted our offer when they accepted the other offer. The timeline was: Yesterday 3pm - see house 6pm ish - our agent asked for disclosures 9pm - our agent told theirs to expect an offer the next morning (I should have just offered yesterday evening, it had been on the market for a month, figured sleeping on the biggest financial decision of my life wasn't the worst idea in the world) 10:30pm - seller agreed to another offer (apparently without knowledge of our impending offer) Today 6:00am - check the listing online and see that it's pending, sellers' agent is unresponsive Afternoon - I leave the letter on the porch Later - sellers' agent blows up Evening - got a nice email from the sellers thanking us for the note and telling us we will be their next call if the current falls through End of the day it's a lesson to take ownership of the situation and pull the trigger if you know you want to. As a first time home buyer, it's easy to just go along with whatever your agent recommends but I've been reading this thread long enough to know agents aren't omnipresent. You have to drive the transaction and own up to the outcome.
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Mar 8, 2021 05:38
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Thanatosian posted:I thought the whole point of an 80-10-10 was that you didn't have to pay PMI...? What I'm saying is you can always, at any time, throw money at the principal until you hit 80% LTV and the PMI will go away. So if you are able to do this by summer, you'll only be eating a few months of PMI. I don't really see the point of the second loan here. I'd be very surprised if it made it significantly cheaper in this case and it certainly doesn't make it simpler.
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Mar 8, 2021 05:54
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alnilam posted:I've never heard of that arrangement but if you can afford to pay the remainder of 20% soon, why not just pay down the principal up to the 20% level when you can? That will kill the PMI. H110Hawk posted:Do not do 80/10/10 if you have 15%. Pmi is not that much money, way less than that 10% tertiary mortgage. You will just be lining some loan originators pockets by selling 3 loans at once, for far more "fees." those are the alternative to fha. Thanatosian posted:I thought the whole point of an 80-10-10 was that you didn't have to pay PMI...?
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Mar 8, 2021 05:54
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Oh i didn't realize jumbo was a factor, disregard my advice, or maybe don't, i just don't know about it
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Mar 8, 2021 05:55
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amethystbliss posted:Yeah, 80/10/10 avoids PMI entirely but it's negligible if it's just for a few months anyway. The way it was presented was that it is more about avoiding the jumbo loan requirements. Lender said jumbo loans are difficult to get now with less than 20% down so recommended this as a work around? He also recommended a scenario where the first loan was a larger amount and the second loan was only like $25k to avoid jumbo. We have no debt, a six month emergency fund, healthy retirement savings and credit scores in 800s so this seemed like a weird recommendation. I also suspected it was more about lining the lender's pockets, but thought I'd ask around. The articles I read about 80/10/10 made it seem like a reasonable option for our situation, but something still seemed off about it. The advice I'm getting from lender in similar situation is try to avoid jumbo as much as possible by capping the conventional loan amount and pay the rest in cash-- however if there's a house we find over that amount that they could do a "portfolio" loan which sounds like what you're describing. The difference in rates for a jumbo/conventional is about 1% so it makes sense to me to keep that low, especially for a 30 year term.
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Mar 8, 2021 10:04
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milkman dad posted:The advice I'm getting from lender in similar situation is try to avoid jumbo as much as possible by capping the conventional loan amount and pay the rest in cash-- however if there's a house we find over that amount that they could do a "portfolio" loan which sounds like what you're describing. The difference in rates for a jumbo/conventional is about 1% so it makes sense to me to keep that low, especially for a 30 year term. Get quotes (plural) on both options and run the math.
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Mar 8, 2021 15:41
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amethystbliss posted:Yeah, 80/10/10 avoids PMI entirely but it's negligible if it's just for a few months anyway. The way it was presented was that it is more about avoiding the jumbo loan requirements. Lender said jumbo loans are difficult to get now with less than 20% down so recommended this as a work around? He also recommended a scenario where the first loan was a larger amount and the second loan was only like $25k to avoid jumbo. We have no debt, a six month emergency fund, healthy retirement savings and credit scores in 800s so this seemed like a weird recommendation. I also suspected it was more about lining the lender's pockets, but thought I'd ask around. The articles I read about 80/10/10 made it seem like a reasonable option for our situation, but something still seemed off about it. As of Dec at least, Citi was doing 15% down jumbos with no PMI at very competitive rates. If you want to shop around at all.
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Mar 8, 2021 15:59
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The broker I am working with said 30 yr jumbos were only running around 0.125% over conventional. I didn't verify myself since we're under the threshold but I was still surprised.
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Mar 8, 2021 16:26
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Wow. It must be somewhat regional cause three brokers I talked to just 4-5 months ago told me it was more like a 1% difference and that less than 20% down was no go, with jumbo. We looked at a few houses just a little bit above the threshold and just assumed we'd have to pay slightly over 20% down to get the loan amount back to conventional territory. But also way fewer houses here are jumbo price vs, say, California. I wonder if lenders concentrate their better jumbo deals in very jumbo markets?
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Mar 8, 2021 16:33
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Yep, this is for bay area CA. It was also in the context of having 20% down, don't know if that makes a difference either.
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Mar 8, 2021 16:36
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Isn't everything in certain areas jumbos by nature of the market?
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Mar 8, 2021 16:48
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kw0134 posted:Isn't everything in certain areas jumbos by nature of the market? No. The line for how much makes a jumbo loan is different by market for this very reason.
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Mar 8, 2021 16:58
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poo poo, the seller came back and said they liked my offer a lot, i.e. I am massively overpaying.
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Mar 8, 2021 17:01
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I mean, if the market has the house at what you're willing to pay, you're not overpaying. You're just paying more than the next person and that means you could get the house. Also, they might see your offer as a cleaner/easier offer to go with and see less chance of the deal falling through. Right now, everybody is overpaying. That's just the way it is.
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Mar 8, 2021 19:16
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Motronic posted:No. The line for how much makes a jumbo loan is different by market for this very reason. Still insane either way.
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Mar 8, 2021 19:59
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A letter to the seller that you are interested isn't an offer. Make an offer, get an accepted backup, start the financing process
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Mar 8, 2021 20:56
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It's looking very likely that I've just bought a house. Guess I need to start shopping for mortgages. Is there some kind of spreadsheet or calculator that I can use to compare mortgages?
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Mar 8, 2021 22:24
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It's the lenders' job to provide a cost sheet for you that details the closing cost estimate and the monthly payment info. Just compare those across 3 or so lenders. Also are you actually obligated yet? You sound... surprised. Is there an inspection contingency? Have you given over the earnest money yet?
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Mar 8, 2021 22:27
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spf3million posted:The broker I am working with said 30 yr jumbos were only running around 0.125% over conventional. I didn't verify myself since we're under the threshold but I was still surprised. I just got a lock on a jumbo at 2.875% today, with less than $1000 in points. Granted, every broker I've spoken to is absolutely shocked at this rate, but still it's out there. Also, we finally got a signed contract! There was some weird feet dragging because the owner was insistent on a two week rent back, and told us they wanted it very very late (like after we signed the contract that didn't include it), but they gave on it after a week. There's absolutely no chance I take that risk with evictions halted. I'm a little worried about appraisal, as our broker thinks it will come in lower than our offer. We were exceptionally clear that we will not be covering any spread whatsoever should it occur, but considering how complicated the seller has made things a few times I'm still kind of skittish on it. I think we'll be ok as the seller has a purchase contract already signed and needs to sell this place so he can get his, but you never know 
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Mar 8, 2021 22:36
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lampey posted:A letter to the seller that you are interested isn't an offer. Make an offer, get an accepted backup, start the financing process Ya did "I cannot advise you to do that" turn into high fiving while quietly continuing to sandbag OP?
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Mar 8, 2021 22:39
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alnilam posted:It's the lenders' job to provide a cost sheet for you that details the closing cost estimate and the monthly payment info. Just compare those across 3 or so lenders. I haven't actually seen the house yet. There's a lot of YOLOing going on this week for me.
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Mar 8, 2021 23:13
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Saw a house in a perfect location that I probably would have bid the top of my budget for, listing says showings start tomorrow, I text my agent, he says they're not scheduling any showings because they already have multiple offers sight unseen.
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Mar 8, 2021 23:17
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Throatwarbler posted:I haven't actually seen the house yet. Maybe you ought to take a drive over to the house and at least walk around it if you can, like right now. Throatwarbler posted:It's looking very likely that I've just bought a house. Guess I need to start shopping for mortgages. Is there some kind of spreadsheet or calculator that I can use to compare mortgages? Just make some phone calls to some banks nearby. Lenders are used to this. You can just ask them over the phone for some numbers, then ask to have their rate sheet emailed to you. If they're unwilling, then hang up and call the bank right next door to them. When you decide on a lender, you can pretty much beast through most of their paperwork in a day.
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Mar 9, 2021 00:17
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My killjoy agent inserted a clause in the agreement that I need to at least see the place once before I'm totally committed, so I guess I'll go check it out tomorrow. I talked with a couple of lenders already and they throw out so many numbers I can't keep track, plus some of them also offer credits towards closing, presumably at the expense of higher rates? That's why I think I should have spreadsheet to keep all this poo poo straight.
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Mar 9, 2021 00:43
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Throatwarbler posted:My killjoy agent inserted a clause in the agreement that I need to at least see the place once before I'm totally committed, so I guess I'll go check it out tomorrow. Ask them what their "Box A and Box B totals" are, it's part of the Loan Estimate form you will need to get eventually from them.
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Mar 9, 2021 00:55
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Seller accepted my offer! Verbally, so I guess she can still go back on it, but they are getting her to sign the agreement today, and we are going back tonight to take measurements. We offered the realtors to make higher offers, but they actually declined, saying our offer was strong enough on its own and we shouldn't overpay. So, yay! And the lender agreed to a 21 day COE so we could be in our new house at the end of the month!
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Mar 9, 2021 01:44
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Throatwarbler posted:I talked with a couple of lenders already and they throw out so many numbers I can't keep track, plus some of them also offer credits towards closing, presumably at the expense of higher rates? That's why I think I should have spreadsheet to keep all this poo poo straight. The credits towards closing for me were just credits towards closing costs. This is different than point buys. After you agree to a mortgage rate, most lending institutions allow you to pay part a % of your principle in exchange of lower interest rates. For me it was something like $2,500 extra in closing costs for 0.1% less interest rate. I don't remember the exact amounts though because as you said, they throw a lot of numbers at you. Also, pay attention to the APR as much if not more than the Loan Rate. That APR is the actual amount of % interest you'll have each month. I had one lender offer a lower mortgage rate, but their APR was higher than a different one.
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Mar 9, 2021 01:57
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AmbientParadox posted:Also, pay attention to the APR as much if not more than the Loan Rate. That APR is the actual amount of % interest you'll have each month. I had one lender offer a lower mortgage rate, but their APR was higher than a different one. I do not understand how this works.
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Mar 9, 2021 03:09
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AmbientParadox posted:The credits towards closing for me were just I had one lender offer a lower mortgage rate, but their APR was higher than a different one. What the gently caress
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Mar 9, 2021 03:11
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Dross posted:I do not understand how this works. CFPB to the rescue quote:
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Mar 9, 2021 04:14
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Yep. One lender offered a mortgage rate of 2.6% but the APR came out to 2.85%. Another lender offered a mortgage rate of 2.65% but the APR was 2.75%. Again, these are not the exact numbers Your lender will offer points which is literally like you pay an additional 0.25% of your mortgage up front to lower the APR. All of this sounds really minor but consider this: A 30 year, $500,000 mortgage at 3.4% (3.55% APR) will mean $298,265 in interest paid. A 30 year, $500,000 mortgage at 3.2% (3.348% APR) will mean $278,441 in interest paid. That's $650 a year less for the entirety of the loan. So doing a minor point buy for say, $3,000 would pay for itself after year 5.
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Mar 9, 2021 04:34
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AmbientParadox posted:A 30 year, $500,000 mortgage at 3.4% (3.55% APR) will mean $298,265 in interest paid. I'm curious, adjusted for inflation, assuming 2%/year inflation, what's the actualized savings here I haven't done the math, buy I guess it's worth it for year six and seven, but seems like by the time you hit year 20 you're splitting hairs
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Mar 9, 2021 05:05
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An important question also being: who lives in a house for 30 years? The math can't account for that but you have to conceptually account for it.
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Mar 9, 2021 05:21
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135k over asking, 38 offers, tied for first with two all cash all contingencies waived, so I get 3rd place despite 30% down 
biceps crimes fucked around with this message at 06:03 on Mar 9, 2021 |
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Mar 9, 2021 05:28
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I feel like this thread right now is a weird contest for who can be the most punished. We just put another offer in for 70k over asking with an escalation for another 70k above, waived inspection, 20k earnest, 10k low appraisal. We won't get this house.
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Mar 9, 2021 05:55
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I got punished the most -- my offer was accepted! Granted, my market is nowhere near as departed from reality as most of yours. In the open house I turned on the hot water and noticed it came out at a drip. Hope that won't be an inspection sticking point that will torpedo the deal, we'll see. Inner Light fucked around with this message at 06:35 on Mar 9, 2021 |
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Mar 9, 2021 06:33
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gay_crimes posted:135k over asking, 38 offers, tied for first with two all cash all contingencies waived, so I get 3rd place despite 30% down Feeling really good about our $25k over ask last February
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Mar 9, 2021 07:05
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Hadlock posted:Feeling really good about our $25k over ask last February Yeah I felt pretty mixed last year when I purchased. Things already felt out of control and we scrapped our plans to go full house and shifted towards a condo and went in with a much lower budget and got a very special place. We still felt like we overpaid afterwards though. Looking at what's happening right now...sheesh. It's hard to even believe it. e: Relevant NYT article on all this from this week
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Mar 9, 2021 07:31
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I really feel for you guys trying to buy right now. I remember seeing prices shoot up about $30k on the houses my wife and I were shooting for between the time we "perused" the market in 2017 and when we started actually looking in 2018, but the situation you guys are experiencing is insane and I seriously don't know how I would have been able to buy a place if we hadn't lucked out and bought in 2018. A house two yards down from us was sold about 4 weeks after we moved into our place and it just sold again about a week ago for $110k more than the previous price. The usually over-zealous Zillow Zestimate literally wasn't showing prices that high. Zillow claims my home has appreciated $150k in the last three years, and that's without telling Zillow about any of the improvements we've made. In comparison, I lived in the same house in Central PA for close to 5 years starting in 2008, and that fucker appreciated like 5k over that whole time. poo poo's crazy right now, buy a house carefully and make sure you really can afford what's being asked of you.
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Mar 9, 2021 08:08
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