Re: So I've started my journey
06-27-2012 08:10 AM
I've changed my lender now and got a new pre-approval. However this time my DTI is an issue. Not because anything changed on my credit. The previous lender stated any debt that will take less then 10 payments to pay off will not be included in DTI. This new lender states an FHA regulation does not allow this, anyone know if this is true?
I then got some bad news from my agent. The house is currently listed at 249k as a duplex, but was recently dropped to 239k when we first went to visit the property. The comps in the area for a like house is selling for about $75 sqft this house is at $65 sqft. I wanted to offer 230k and have the seller pay my closing cost. I thought this was reasonable for the following:
1. the house is legally not a duplex as they are presenting/listing it.
2. I don't know what ramifications number one will have on me.
3. initially the hosue was listed 8k under 2012 tax assessment which was $247.9k. The 2013 tax assesment is 241k so now we are only 2k under tax assessment. and before they were willing to be 8k under so I felt this was a good offer.
However, when I spoke to my Agent is stated the sellers bottom line is a to net 239k out of the house. Which means I would be looking at 239k + $6900 (closing) = $249.5K. With PMI and $3900 in taxes a year!!!! I would be looking at a payment of over $1700 a month. The current tenant in the mother in law unit is paying $1100, and my current rent is $750. Which means I would have no net cash flow!
I still think the house is a good deal, but my main goal is to own a home w/ a tenant that allows me to save money for a larger investment later. I think I will have my agent submit my offer anyway and if they reject it I'll walk away.
Starting Score: 615
Current Score: Lender pullEQ 667, TU04 698 TU98 644, EX 660
Goal Score: 700
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