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The time is here, buying a new house.

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Slim1Der
Frequent Contributor

The time is here, buying a new house.

Ok guys, the time is here. I've applied for a pre-approval for a new home. I've actually applied with 2 different lenders. One being NavyFederal and the other through a local mortgage lender. Pitting one against the other to get the best terms. Here's a little background:

 

Looking for a home in the $500-$550k range

Putting 10% down

My income: $14,000/month

My scores: TransUnion FICORiskScoreClassic04 - 762, Experian FairIssac (VA) - 705, Equifax FACTABeacon5.0 - 700

 

I thought NavyFederal's terms and rates would be lower for me, but here's where them came in at so far.

 

30 year fixed

10% down

3.75% PLUS 1.75%(due to my score not being 720+) = 5%

Also, I would have to have 6 months of cash reserves in the bank

 

And if I did an ARM:

5/5 ARM

2.875% + 1.625(due to my score not being 720+) = 4.5%

ZERO down

 

I'mk still waiting for the other lender to let me know what they could do, but initially they told me 4% and I wouldn't have to have any cash reserves in the bank. So we'll see...

EX - 751 EQ - 732 TU - 752
Over $200k in revolving credit lines
10% Overall UTI
BK Discharge Jan 2009
Message 1 of 3
2 REPLIES 2
Slim1Der
Frequent Contributor

Re: The time is here, buying a new house.

Just an update to this post.

 

Boy have I learned alot in this past month! Long story short, I finally got my Pre-Approval through Navy Federal for a 5/5 Conventional Jumbo ARM. This is after I got declined from KINECTA FCU and Skyline Financial(which is who I used for my first home through FHA). These other lenders basically said because of the way that I get paid (100% commission), that they can only use the average of my income from the past 24 months which would have taken me down to $10,100/month as opposed to the $14,000 I make now consistantly. Which would have taken my DTI to +50%. Also, they had a problem with my "reserves" after closing, since I was trying to go conventional, I was putting 10% down which would have wiped my my accounts. Although I had gift funds from my father-in-law of $25,000, they were only allowing me to use 3% of the purchase price. 

 

What I did learn is that most lenders underwrite through Fanny/Freddie and even though they promised me the world, they were unable to deliver. I don't know how Navy Fed approved me with ZERO down on this ARM, but I'm glad they did. 

 

I'm making my offer on a house we found for $500,000. Wish me luck!

EX - 751 EQ - 732 TU - 752
Over $200k in revolving credit lines
10% Overall UTI
BK Discharge Jan 2009
Message 2 of 3
wagsk1
Regular Contributor

Re: The time is here, buying a new house.

Good Luck!

 

Message 3 of 3
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