First time Home Buyer

[Anonymous]

I was pre-approved on something called the "My Community" program, which sounds very similar to the "Community Commitment Program."
When I was approved it was at about 6.3%, but in the past 2 weeks it has gone upto about 6.7%

This is a decent program w/ 100% financing. The interest rate is not quite at the Prime level, but it is still pretty good.

[Anonymous]

Cool.  My fiancee and I are planning on buying next year ourselves.  Working on GW letters to see if I can improve my scores some more.  100% - sweet.

[Anonymous]

I agree with devhip - don't take "funny money" you'll regret later.

My wife and I just locked on a 30 year fixed at 6.75% with a credit score of 802.  Rates are changing (going up) fast.  The problem you may have is that you normally can't lock the rate until you sign the purchase contract on a particular home.  Check with your lender to see if you can lock the rate now in order to avoid having a higher rate once you find the house.  I also agree with trying to avoid the PMI by putting more down if possible.

Just my thoughts - everybody (especially mortgage brokers) has different ideas on how you should structure your mortgage.  Bottom line is do what is right for you.    

Message Edited by DionLawOffice on 06-10-2007 08:22 AM

Message Edited by DionLawOffice on 06-10-2007 08:59 PM

[Anonymous]

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@Anonymous wrote:

I agree with devhip - don't take "funny money" you'll regret later.

My wife and I just closed on a 30 year fixed at 6.75% with a credit score of 802. Rates are changing (going up) fast. The problem you may have is that you normally can't lock the rate until you sign the purchase contract on a particular home. Check with your lender to see if you can lock the rate now in order to avoid having a higher rate once you find the house. I also agree with trying to avoid the PMI by putting more down if possible.

Just my thoughts - everybody (especially mortgage brokers) has different ideas on how you should structure your mortgage. Bottom line is do what is right for you.

Message Edited by DionLawOffice on 06-10-2007 08:22 AM

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6.75 with 800 Credit? That seems high to me?
Can you provide some more information for such a high rate?

[Anonymous]

Everyone should keep in mind that it's not just your score that gets you a low rate but it does have a big part in the rate. I have seen people with 620 fico get better rates than 720 fico. Many of you won't believe this but I have a borrower now with a 566 fico that I gave a 8.625 and because she has 100K in her 401K, great payment history, and very low loan to value and she just got an uplift to go prime at a 5.875 30year fixed rate.

I don't want to mislead anyone!!! She is paying 4points or $5,280 on $132,000 loan amount. I am paying off all of her debt and saving her over all $900. OK... 4 points is a lot right?

A loan amount of $132,000 with the rate at 5.875% for 30 years = 780.83   30 YEARS

Now take the $780.80 + $900 $500 = 1280.80 put this into the loan... Now she will pay it off in 11.98 years. If she did 1680.80 she would pay it off 8.28 years.

A GOOD TIP... ON A PRINCIPLE AND INTEREST PAYMENT. TAKE YOU PAYMENT AND TIMES IT BY 1.25 AND APPLY THE EXTRA TO YOUR MORTGAGE AND YOU WILL CUT THE LOAN IN HALF.

Try this on a mortgage calculator if you don’t have one... Google it.

Sorry!!! Got of track.

Fico - 620 plus is where you want to be but 700 fico you can get more done.

DR (debt to income) - To be prime you need to be at 38% or less but you can get away with 45%

Assets - 3 to 6 months in the min... If you have a lot of assets you can get a prime loan at 52% DR and I say 52% because that is the highest I have ever done.   

Doc type - Full doc is always the best way to get a lower rate. Any time risk is involved the rate will go up.  See examples below.

Reduced - Stated income, Employment and Assets verified

No Ratio - Employment and Assets verified, Income NOT stated or verified

SISA - Stated income, Stated assets but Employment verified

NINA - Income, Assets, Employmeny NOT verified

Purchase or Refi? First time home buyers seem to have the best rate. Then goes Purchase... Then Refi.

Example... Let’s say you have a 750 - 800 Fico and you have no assets because it’s all in your business. So we can't prove assets. As for income... You don’t pay yourself and we are going to prove your income with tax returns. Let’s see... Most tax returns I see borrowers write everything off to show a loss and the net is what we need. If we use the tax returns the DR will be too high. This loan would be a SISA (Stated income/Stated assets).

A borrower with a 620 Fico that could go full doc, show assets, no late of any kind, and same job/field for min of two years would get a better rate.

DionLaw is 100% correct!!!!!! Do what is right for you!!!

You can give the same loan to ten loan officers and get ten diffrent quotes! Even if its from the same company.You should be able to give the LO your information and they should ask all the right question, go over every item of your credit report with you, and most of all do what is best for you and not the LO's pocket. The way I look at it is if I take care of my borrower it may lead to a referral.

Message Edited by OneMortgageGuy on 06-10-2007 01:28 PM

[Anonymous]

Timothy,

The 6.75% financing was a 30 year fixed, jumbo loan (650,000.00), no points, stated income (self employed - i.e no doc), locked last week.  Mortgageguy may correct me, but rates recently went up.  About the only deal I have found better is the same loan at 6.50% that I'm trying to lock this week.  If you know of a better deal please let me know, and I'll jump on it.  My understanding as of this coming week is that they will be going even higher.  The only way I know to be at a lower rate is to buy points (then, of course, one can buy it down to any interest rate they wish).

Mortgageguy,

What are you seeing out there for no point 30 year jumbo loans?   

[Anonymous]

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@Anonymous wrote:

Timothy,

The 6.75% financing was a 30 year fixed, jumbo loan (650,000.00), no points, stated income (self employed - i.e no doc), locked last week. Mortgageguy may correct me, but rates recently went up. About the only deal I have found better is the same loan at 6.50% that I'm trying to lock this week. If you know of a better deal please let me know, and I'll jump on it. My understanding as of this coming week is that they will be going even higher. The only way I know to be at a lower rate is to buy points (then, of course, one can buy it down to any interest rate they wish).

Mortgageguy,

What are you seeing out there for no point 30 year jumbo loans?

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All you had to say was Stated income, no points.

[Anonymous]

Yes, could have just said stated, no points.  Reason for all the detail is because mortgage shopping is a pain in the @$$.  Perhaps with more detail someone may know of even a better deal that may be out there - especially someone in the mortgage business     Also, if I can save someone from re-inventing the wheel and going through what we have been dealing with in the last month that would be good too.

Back to the two people currently mortgage shopping - If you can lock at a reasonable rate now, I would do it and then keep shopping.  By locking now I don't think you are committed to that loan, but it would create a safety net if rates keep quickly rising.

Interesting thread for everyone in the middle of the mortgage headache.  Hopefully more people with chime in with what they are finding.  

[Anonymous]

Hey there Timmothy,

Just curious and I apologize if I missed it somewhere, but your getting a loan for 650,000 and how much are you putting down?  Without seeing everything its hard to tell, but i'm pretty sure I could get ya 6 5/8 with Bank of America.  If you would like to know more just send me a pm back.  Good Luck!

[Anonymous]

My fiance and I both got divorced two years ago.  She has a home that is 100% financed 80% first 20% second.  Other than her house, that she had little equity in, she doesn't have much in the way of 401k.  Neither do I.  I'm pretty much starting over...

The good news is that our combined income will be $150k+, and we think we can save from $30 to $50k towards buying a new house in one year.  But at that time we will have only about $20k in a 401k.  So our assets are pretty slim.  Our monthly expenses would be about $5 to $7k, if something happens.  I guess that means that if we have $20k in the 401k, we would have 3 to 4 months.

Do I have this more of less right?  Should we get more of a nest egg in assets before getting another house?

btw, my scores are above 660, and here's above $700.