Well our house has actually been under construction for some time (based on our pre-approval), but we have now officially put in our application. We don't anticipate any hiccups, although we certainly expect some due to the nature of the process.
The lowdown:
Purchase price - 415k
Downpayment - 5%
Income - $130k (joint)
Scores - 700, 701 (mids)
DTI - 42% (with new house)
I'll update here with various goings-on in the mortgage area, such as when it goes to UW, and what conditions they may throw back at us. We're going to apply with both the builder's lender as well as a lender referred by a relative, so I'll compare that as well.
Wish us luck!
So we got the info from both the builder's lender and the referred lender. Boy, those builder's lenders haven't changed...
BL:
Rate - 4.125
Orig. Fee - 5500
Closing funds - 19000
(This is all with the builder throwing in 3000 in closing costs)
RL:
Rate - 3.875
Orig. Fee - 2900
Closing funds - 15000
So the BL wants more in fees (just listed the origination fee here), meaning we need more up-front at closing AND our monthly payment would be higher due to the higher interest rate. Basically charging us twice while trying to claim they're giving us money.
Needless to say, we're going with the referred lender. We may actually end up going with an 80/15/5 loan to avoid mortgage insurance, which would raise the rate a little, but saves us money in the long run. For the initial stages, the lender hasn't asked for anything so far. We're still around 2 months away, so we don't expect too many items popping up in the immediate future.
origination fee
The origination fee is just that - a fee for originating the loan. Think of it as an administrative fee. Not sure why you haven't seen it on here before. Either not many people mention specifics, or you just haven't read enough posts. This is our third house and we've had one on each...
Well we're getting closer and closer. There hasn't been much movement the past month-plus, due to construction issues, but it looks like we're on track for a mid-September close.
Mortgage-wise, we got approvals on both the primary and second mortgages yesterday, with the following 'conditions':
1. Confirmation of student loan payments once they're out of deferment
2. Remove dispute on old account (didn't even know we disputed it, so I'm sort of confused there)
3. Updated paystubs/bank statements
4. Old paystub from original application date (guessing they misplaced the one they already had?)
5. Had to change DL addresses for the second mortgage company to reflect the new property address (am I the only one that thinks that's weird?)
Nothing we can't easily handle, so thank goodness for that!