Credit Run for Everyone on Deed/Mortgage?
Do they need/pull the credit reports of everyone going to be on the deed or mortgage even if the parties don't own equal shares? Thoughts? Discuss?
Categories: mortgage Tags: deed, deed-or-mortgage, everyone-going, mortgage, mortgage-even, own-equal, pull-the-credit, the-parties
Mortgage questions
I'm hoping that someone can help me answer some questions about getting a mortgage. DH and I have owned two homes previously, so I've been through the process but our situation has changed since last time we applied for a mortgage. Currently our combined gross income is $150,00. My scores are EQ703 TU714, DH's scores are EQ596 TU614. DH's scores were much higher until a couple years ago when we ran into financial difficulty due to the fact that we had to move out of state for me to finish school. We were paying mortgage and rent at the same time and had considerable debt due to the fact that I was in school full time and we have 3 kids. No excuses here, just trying to paint an overall picture for you. We both have 2 - 30 day lates (8/07 & 9/07) and a 60 day late(2/08) on our previous mortgage. DH has 3 cc's that were CO and 2 have been settled. The only reason we haven't settled the other one yet is because for some reason it is reporting that we are paying as agreed, in return giving him all those pretty green 30 day marks on that account, and I don't want it to update if we pay it and cause his already crummy score to drop more. If we get a mortgage, and yes I know it's a big if, we will happily pay the CO at closing. I also have some late payments on a couple cc's from 2007. My Chase which was closed has a 30 (1/08), 60 (8/07), 90 (9/07), 120 (10/07) lates, I've tried numerous times to GW but they are ruthless. The other is my BofA that was also closed, I got them to delete my 60 and 90 late but they never notified the CRA's and I'm not sure what to do about that because I don't want the dispute to count against me. I do have a letter from them saying they will delete it. Other than that my report is clean. CC utilization is up to 50% right now but I'll be getting that back down to about 9% this month. Our DTI with rent of $2000 a month is about 22%. We found a house we love. It's $430K and FHA limit is $373K. We only have 30K to put down. So do I have any other options? We do not qualify for USDA because we make too much. I'm hoping to get DH's middle score up to atleast 620 by the time we apply if not than I guess it's pretty much a no go, right? Even though my score is higher? If anyone can explain how applying jointly with a bad score and a good score works I would appreciate it. My gross is about $6300 a month so I don't think I could qualify on my own. DH had never had a credit problem before so it's been very discouraging for both of us. I'm bummed because it's the only decent house we can find in the right school district and close to my work. Two very big factors in house hunting. We are being forced out of our current home because our landlord is being foreclosed on or we would be waiting another year to even look. There are no rentals in the area that would work either so I'm sort of at a loss right now... Thanks in advance for any help.
Categories: mortgage Tags: apply-if-not, bummed-because, combined, fact, landlord, mortgage, overall-picture, school-district, score, situation, time, work
Prequalification
I was prequalified for a mortgage of $171,000. Now I found a home and offered $145 and asked seller to pay closing costs. I then went to another LO and because I have only been on my job for 1 year and 9 months, she can't use my overtime to calculate how much I qualify for. She has to use my base pay which makes me only qualify for $125,000. She said if I waited until June when I am on the job for a full 2 years then she could figure that into it. I was on unemployment for 6 months before I started this job. I also went to school and went into a different line of work. Anyone have any experience with this or can offer an insight? She is also telling me not to rush into anything as lots of houses (foreclosures) will be coming on the market this year. I should also hear back about the offer I made today.
Categories: mortgage Tags: asked-seller, calculate-how, different-line, months-before, mortgage, offer, only-qualify, overtime, pay-closing
USDA Loan and Credit
Does anyone know any lenders who would approve a USDA loan in New York State with a 620+ mid-FICO score and 4 months left on a 5-year Chapter 13 due to extenuating cicumstances? I am familiar with USDA underwriting guidelines, but I can't find any one who actually lends on those guidelines...most are telling my mortgage broker 660+, and I'm just not there yet. I know the obvious answer is to wait 4 months until discharge...but the house I'm renting is being sold now. I've moved many times for my career and am disheartened to be THIS close and have to uproot my kids into yet another rental.
Categories: mortgage Tags: actually-lends, being-sold, career, kids, months-left, mortgage, mortgage-broker, obvious, obvious-answer, rental
WF bought my mortgage
I just bought a short sale. (Seller owed $168,000 to Wells Fargo.) I bought it for $140,000. My mortgage company (Mortgage America) sold my mortgage back to Wells Fargo. I guess they like my house. LOL Irony amuses me.
Broker negotiated shortsale?
Anyone have any experience on these? We put in an offer on a house this weekend that is a prenegotiated short sale through a broker. Apparently what happens with this is that the broker purchases the house from the bank, then turns around and immediately sells it back to us for a profit. I'm ok with this, this is a great house, great neighborhood and has everything we really want in a home. My understanding is that this has to be completed through the 100% USDA financing due to seasoning issues. We started with an offer of $143,000 plus seller pays closing costs, to close on April 30. The sellers agent returned to us this morning a counter offer of $152,000, them paying closing costs and closing by March 31st. Is it remotely possible for closing to go THAT fast????? Especially with a USDA loan? We have hired a real estate attorney to protect our interests, and my mortgage broker and realtor are great. They're saying there is no way to close on this house within 22 days. I would appreciate any information anyone has on this situation. Thanks Again!
Categories: mortgage Tags: Broker, closing-costs, from-the-bank, interests, mortgage, mortgage-broker, sellers-agent, situation
FHA and income question
My loan officer emailed me today and asked me to file my income tax for 2009.I hadn't planned on filing until after closing.She has my W2"s.She said I can't make as many deductions as I made last year because it drops my income and the FHA loan is based on my taxable income after all my deductions. I thought it was based on your gross income.I donate to charity,have children ,mortgage interest payments,work/education costs etc.I base my deductions every pay on these.If I don't take them I will have to end up paying taxes. Does this seem normal ?
Categories: mortgage Tags: deductions, education-costs, gross, income, income-tax, loan-officer, mortgage, taxable, taxable-income, year-because, your-gross
Bank of America: No Fee Mortgage Plus ?
Back in 2007 I remember mortgage companies were losing A LOT of business due to Bank of America and their streamlined mortgage with virtually no fees. Has anyone used this program to fund their loan? From: http://www.thetruthaboutmortgage.com/bank-of-america-no-fee-mortgage/ "The program effectively eliminates out-of-pocket closing costs that a typical mortgage carries such as application, appraisal, underwriting, doc drawing, and title and escrow fees. It also guarantees closing within 25 days or the first mortgage payment is waived. And any consumer approved for a mortgage who chooses to close with another bank or lender will be paid $250. " There is a simple answer provided here: http://www.mtgprofessor.com/A%20-%20Type%20of%20Loan%20Provider/no_fee_mortgage_plus_is_bank_of_america_a_white_knight.htm BUT -- I wanted to consult the forums for first hand experience! Anyone?
Categories: mortgage Tags: america, another-bank, bank-or-lender, business-due, closing-within, companies-were, mortgage, program, simple-answer, streamlined
Thinking about buying a house, nervous and lots of questions…
Hello all, I am thinking about buying a home. I am very nervous and dont know anything about buying a home. I wanted to ask a lot of questions to our supportive myfico community and advice me accordingly. I live in NJ and work in NY. I was thinking about buying a property in Virginia Beach because I am looking to move there in the future and its only about 5-6 hrs away. I would live with a friend in NJ during the work week and then drive down during friday evening and come back Early Monday morning. Would I qualify for an FHA with this living arrangement? If so, can everyone recommend some FHA lenders with low closing costs and no points? Another thing I am confused about and I am embarassed to say this is that I do now know anything about appraisals and property values, however, I was talking to the mortgage officer at Wells Fargo and he said that it doesnt matter how much the home appraises for, the home is valued at what you paid for it. What I am trying to say is that, I am looking at a home, asking price is 108K and the city tax value assessment for 09-10 was 155K and it would appraise for that much, so does this mean that after I buy the home, I loose the 47K of equity? And lets say if down the line, I need to tap into this equity and get a HELOC, I wouldnt be able to? Lets say, if I dont qualify for the FHA and this is seen as a second home or vacation property than would I still qualify for the 8k of tax credit? How much would you guys say to offer below the asking price? I am sure I will have more questions and I will post... Please help me out answer some of these questions and I would really appreciate it. Home owners know how difficult it was to go through this process and any information I get from everyone will be immensely appreciated! Thank you.
Categories: mortgage Tags: down-the-line, during-the-work, early-monday, loose-the-47k, mortgage, property-values, virginia, virginia-beach, wells-fargo, work
Advice on Lowering DTI
I'm trying to arrange my finances so I can hopefully apply for a mortgage next year (and a half if need be). The money I would be putting away for a downpayment is $500 a month (sometimes $750, but the extra $250 I will keep as an emergency fund). I want to pay off debt, but strategically I'd like to allocate it so it lowers my DTI the fastest. Here is the info (balance/limit/minimum mo pmt): Chase: $4067/$7K/$83 Citi: $5659/13.5K/$136 BoA: $2775/$7K/$49 Personal loan: $173/mo - scheduled payoff date: 05/15/2013 Auto loan: $444/mo - scheduled payoff date: 05/30/2015 Student loan: $275/mo - never ending! Haha kidding, they will all end in 15 years, 2025. Currently my DTI sits at 55% if I were to get a mortgage that would cost me $1100/mo. I currently make $46/yr. As much as I want to pay off off the credit card debt, my initial thought was to use the $500/mo towards the auto loan as that is a big part of my DTI, then I could refinance in a year to lower the monthly payments. The advice you all give is great and I appreciate your feedback!
Categories: mortgage Tags: auto, credit, credit-card, currently-make, emergency-fund, fastest, finances, initial, initial-thought, monthly, mortgage