Ok, well, I'm waiting for a reponse back and know I will not get it until tomorrow but I'm confused, and worried. The SR. Loan officer from Bank of America told me there is $1100 upfront costs for a 203K loan?? What in the world is that for? What does it go towards? Does anyone know?? I have been "Conditionally approved" I found a home I'm interested in, she knows that. I need to submit my documentation tomorrow (W2, bank statements, pay stubs). I offered 68,000 on a home they countered back at 70,000 but will pay 2040 towards closing costs. In the counter they also put closing for June 9th but the lady told me that 203K loans take 60 days to close. I'm soooooo confused. This is a foreclosed home. Also, they stated there would be a Per Diem if buyer delays closing $100 per day. So, is BOA not the right place to go? This is very frustrating, and making me wonder if I should even buy a home but I got to get out my apartment though because it's terrible I can't take another day.
ask them for a GFE... all of the costs should be explained in there.
Are you specifically going for a 203k loan for the additional repairs budget? I'm not a 203k expert or anything, but I'd imagine those costs lump in the extra work that goes into approving a 203k loan, e.g. reviewing contractor bids, additioanl appraisal(s), etc. Might be part of the normal out of pocket costs.
As per the above poster, a GFE should clear it up perhaps?
The upfront costs of my 203k loan consisted of my earnest money deposit, appraisal and inspection.
Did you get to speak with your LO yet?
Thanks the $1100 is for the apprasial/inspection/credit report fee.
I had to pay an additional $1000 for the earnest money deposit which I assume goes towards closing costs?????
Yes, it certainly does. You will see that reflected on your good faith estimate. You should be receiving that very soon.
I'm not sure what program you are using, but the program I qualified for mandated that I pay atleast $2000 towards my closing costs. That money that went toward this $2000 were my earnest deposit, appraisal, inspection, credit report and homeowners insurance. I also had to bring $65.00 to closing. I did end up paying over the $2000, but by very little.
@west, I went through my local neighborhood stabilization program. It was called a NSP3 loan with a 203K rehabilitation loan. My closing costs and repair costs were, for the most part, rolled in to my mortgage. I did not put any money down, aside from my $1k good faith.