Pre- Pre Approval!

[Anonymous]

Krissy,

Yes the advantage of FHA is low down payment, JustRock has a unique situation and I don't think it was fair of him to scare you into thinking you would need that much money. Now, he is correct on the loan amount, when you apply you will be approved for a certain amount, so it may not be the $150k you are looking for and if that is the case you would need to either negotiate the price down to what you were approved for or like in Just Rock's case, pay the difference. Also not all state down payment assistance programs require you to save money to get the assistance. In my state, you get up to 3% assistance, now the way it is done is the state gives you a 2nd loan and as long as you stay in the home for 3 years and pay your mortgage that loan is forgiving after 3 years. If you sell your home before the 3 years, then it comes due and has to be figured into your selling price or you pay the difference.

[Anonymous]

After reading your responses, i immediately went and did some research and found some programs that require counseling and paperwork that would take some time so I thank you for alerting me to start that process now rathert than later.  Even if i had to go to 10k for a 150k loan I would.  I get so many conflicted stories from others who have purchased homes with little money down i was hoping to get that also.  But what I am finding is that your score and report mean a lot in this process, even with a FHA loan I really want to shoot for a 680 mid score.  I dont want to have the minimum score and a minimum down payment, because from what I can tell that lessens your purchase power and you have little room to negotiate.

[Anonymous]

Azriel,

Thank you , i know he meant well but that 28k blew me away.  I understand why now and I am glad he explained it better.  Just as you stated there is a similar program in my state PA that will help with the 3% and consider it a sec loan.  I am still plugging away at my credit so I have less than a year to my goal.  I am shopping for programs now that will help with down payments

[justrock]

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@StartingOver10 wrote:

Part of the difference could be 1) real estate taxes 2) Homeowners Insurance and both of their associated escrows. Do you have a buy down price in your figures JustRock?

Having said that, it does sound like there the numbers should be reviewed, $28k closing costs (including down payment and pre-paids) on $159k is still about double the typical expense I see here in S Florida for an FHA loan.

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My settlement charges, according to my GFE,  are $10, 977.  

Origination charge        $925

Appraisal                      $350

Credit Report                $  12

Tax Service                  $   75

Flood Cert                     $11

Upfront MIP                  $2518

Title service/ins            $598

Owners title ins            $880

Recording chrgs           $355

Transfer tax                  $732

Initial escrow                $3710

daily interest                 $90

Homeowners ins          $720

This does not include the $645 for my home inspection and the $650 for the lawyer, so I needed over $12,300 PLUS my downpayment of $5600.   I am in New York, but not NYC (Ulster County).  I made offers on 3 different houses and not one seller would contribute a penny towards closing costs.  

[StartingOver10]

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@justrock wrote:

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@StartingOver10 wrote:

Part of the difference could be 1) real estate taxes 2) Homeowners Insurance and both of their associated escrows. Do you have a buy down price in your figures JustRock?

Having said that, it does sound like there the numbers should be reviewed, $28k closing costs (including down payment and pre-paids) on $159k is still about double the typical expense I see here in S Florida for an FHA loan.

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My settlement charges, according to my GFE,  are $10, 977.  

Origination charge        $925

Appraisal                      $350

Credit Report                $  12

Tax Service                  $   75

Flood Cert                     $11

Upfront MIP                  $2518  Most of the time this is added to the loan amount but you are free to pay it rather than roll it in.

Title service/ins            $598

Owners title ins            $880  In our county (Palm Beach) this is a negotiable item, but most of the time the seller typically pays this expense in our area. It is an item specified in your purchase contract when you make the offer.  

Recording chrgs           $355

Transfer tax                  $732

Initial escrow                $3710 Assume this is real estate taxes and insurance escrow, right?

daily interest                 $90

Homeowners ins          $720

This does not include the $645 for my home inspection and the $650 for the lawyer, so I needed over $12,300 PLUS my downpayment of $5600.   I am in New York, but not NYC (Ulster County).  I made offers on 3 different houses and not one seller would contribute a penny towards closing costs.  

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The inspections and attorney fees for the buyer are not part of closing costs (anywhere). Inspections because they are third party vendors that are paid for their services provided prior to closing. Really even the attorney that represents the buyer is always a separate expense from closing costs. All the rest of the fees appear similar to our fees except for the amount of homeowners insurance which is very low compared to ours.

Your escrow is probably for the full tax bill due if the payment is due for November 2014 (different areas of the country collect taxes differently). Did your lender give you the credits yet that the seller will be paying toward your tax escrow yet? The seller owes you a credit for the time s/he owns the property this year to the closing date. This time of year the credits are substantial (amost the entire tax bill). You should see much less cash out than the $10.977 depending upon how the tax escrow is handled and the UFMIP is handled.

[justrock]

I will be thrilled if these expenses are less than what has been quoted to me, but for now I have to have the money available. Fortunately I have it.  I wasn't trying to bust a bubble for the OP, just give her a heads up that saving a 5% downpayment wasn't going to cut it.  I'm glad she's going to check out her county's DPA programs.  

[KELLYK]

Hello.  I came across your post and thought that I'd respond as I too am a PA 1st Time Home Buyer --The link to PA's Programs is below.  Hope that it helps....

http://www.anytimeestimate.com/PA_HOME_BUYER/pa-home-buyer-first-time-programs.htm