Ok, so two weeks ago we closed on our house. It was a long road to get to the point of being able to go through with the purchase. I panicked all the way through the month long process but really in the end it was all me panicing. The only condition we had was 1. Provide proof of rent for the past 6 months and 2. Give them a copy of our 401K statement that shows a balance for the last 30 days.
Our appraisal came in at $151.000. House has some minor work that needs done (new roof) and it will than be well worth $169,000 as the comps they compared it with. This was explained in the appraisal. The purchase price of the home was $103,000. (bought it from my mother)
We put 5% down or $5,000 plus paid closing cost.
Did a second mortgage for $15,000 (making our downpayment $20,000 or 20% ). This loan was written at 7%
First mortgage was written for $83,000 at 3.5% conventional.
Next is what blew me away!!! This is where the good credit and having a good relationship pays off.
The credit union called me and said they could rewrite the second mortgage at 4% interest as they are having a rate sale. I have to pay a $50 processing fee to rewrite it. We locked the rate today. So, 2 1/2 weeks after closing on the house we are redoing the second mortgage. On top of this.... They are throwing in an extra $19,500 (the amount we are saving in interest with the lower interest rate) so we can pay off some other bills, put the roof on the house and have plenty of extra money in the bank. Our payments only went up by $50 per month (but buy paying off other bills that totaled almost $500 a month we in serious cash flowing now).
They also are having a rate sale on auto's so I moved my car loan over to the credit union. We wrote it today for 1.99%!!!!!! WE kept the payment the same but shaved off nearly half a year!
I can't explain how wonderful it feels to be in prime land and have the bank working for us and doing everything they can to keep our business.
(Oh, and they used the credit reports they pulled 2 months ago for our mortgage so no new inquiries)
A year ago I could not see the end of the tunnel. If someone told me I would be on top of the world today I would never have believed them.
I love my life!!!
wow congratulations. My credit union sucks. I've started cutting them off and moved my money over to Navy Fed but I still leave a little in there just in case. lol
Starting Score: 03/29/2013 540 EQ 05/01/2013 614 TU 05/30/2013 606 EX (Lender Pull)