Started applying for new purchase mortgage today and made a DUMB mistake!

[Anonymous]

Tuscani   -  That is funny.

Math_Rocks,

What is the $500 deposit for? If it is for the mortgage company, is it refundable if you choose not to do the loan? If it is non-refundable, I would look for a different company. You should be able to find someone that can get you the same deal without a deposit of $500 up front. The mortgage industry is struggling now, there is no reason you should have to pay that kind of money up front.

[Anonymous]

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Math_Rocks wrote:

You're both kind of funny but let me give you a little tip: most of us mathematicians have no common sense and are lucky to be able to walk and chew gum at the same time!

(No offense to any other mathematicians out there.)

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Math involves rational calculations (I think).  On the other hand, buying a house is probably the most emotional purchase a person makes in their life.

[paul]

@Math_rocks:

I am in a similar situation. Fico 708,698,714. I checked mortgage rates with Quicken,Wells Fargo and a local lender. The rates I got were very similar 6.6% + PMI, 7.52% , 6.5% in that order. However I would suggest you try BOA.They do a 100% financing and their rates are very competetive ,(< 6.5% ) with no closing cost. They need a FICO of atleast 700.I am just waiting for my Equifax to go up a little so i can apply.

About Quicken, if you havent paid the deposit , do consider that they need a PMI and the 500$ is non refundable. I did not feel comfortable choosing them.

[MidnightVoice]

I used to live with 4 mathmaticians in college.

Enough said  

[Anonymous]

Math, have you checked out Fannie May flex programs? I just got in on a 100% finance deal at prime with scores and income similar to yours. PM me if you want more info. I can hook you up with my broker.

Message Edited by devhip on 06-11-2007 10:18 AM

[paul]

Devhip:

Did you have to pay PMI too ?

[Math_Rocks]

Definitely, tell us about the PMI. I wish so badly that we qualified for a piggyback so that we could avoid the PMI but I cannot get our DTI ratio under 50 which apparently is the threshhold.

It turns out the local bank down there was "throwing" in some income for my husband which is terribly frustrating. If we had income to show for him, with mid FICO's over 700, we could be talking to ANYONE. So that put me back to Cap One which could do an 80/20 but only up to 150K and Quicken.

We just got back from our househunting trip and we made an offer on a house at 160K that is just perfect for our family. (Unfortunately, our offer is contingent on the sale of our home so we are sitting on pins and needles.) Since that ruled out Cap One, I talked to a broker down there. (She is the one that said 50% is the highest DTI for a piggyback loan.) We really liked her, but being a broker, there is 1% origination on every loan. We qualify for the 100% financing, though, at 6.625% (just like Quicken but paying 1 pt). However, the PMI is almost $130/mo. and that makes our payment a bit too high.

At this point, not knowing for sure if we get the house or we are back to square one, I would really like to figure out the financing end.

[paul]

I am not sure about the DTI though, they did not mention that to be a limitation for me on a piggy back loan. Maybe a policy of the loan servicing institution.