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Any Loan experts can take a look and see if this is a good deal?

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Regular Contributor

Re: Any Loan experts can take a look and see if this is a good deal?

Could shopping around potentially impact me from being able to close on this one?

 

the rate is locked - but I could go to my current bank - and see what they can do. 

525 score as of 9/2015 --- only way to go is up!
Message 21 of 26
Established Contributor

Re: Any Loan experts can take a look and see if this is a good deal?


@Sk323i wrote:

Could shopping around potentially impact me from being able to close on this one?

 

the rate is locked - but I could go to my current bank - and see what they can do. 


Absolutely, but I think that's the point.

 

If you shop around you''ll certainly find that you can beat that deal.....which in effect, will impact you from closing that deal with last  years' rate.

 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 22 of 26
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Established Contributor

Re: Any Loan experts can take a look and see if this is a good deal?

Are you in a "rush" sort of situation? 

FICO 8: EQ 800; EX 797; TU 793
Message 23 of 26
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Regular Contributor

Re: Any Loan experts can take a look and see if this is a good deal?


@donkort wrote:

Are you in a "rush" sort of situation? 


Yes -- I dont know how long I am going to be employed in my current role making as much as i'm making.

I'm on a month to month contract. So best to close before they decide to roll me off at work. 

 

Also - my current loan has bad history. Couple late payments. I figured once this loan account is paid and close - I have a new opportunity with a new loan to build my credit more. 

 

Another scenario is that I may want to rent this house out -- and move to find a new job soon. 

 

I would be much better position to rent when they payment is 1100 - vs the current payment now of 1500

 

Other factors that contribute to me wanting to rush:

The value of the home the current lender got a waiver on - is at 270 -- it would be hard for me to appraise at that level - but who knows. 

I feel like the sooner the deal closes - the sooner that new equity position helps me - regardless of weather I choose to do anything.

If home prices start dropping like rocks tomorrow - at least I got a good appraisal now. 

 

525 score as of 9/2015 --- only way to go is up!
Message 24 of 26
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Established Contributor

Re: Any Loan experts can take a look and see if this is a good deal?

I do see what you are saying.

FICO 8: EQ 800; EX 797; TU 793
Message 25 of 26
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Moderator Emeritus

Re: Any Loan experts can take a look and see if this is a good deal?


@Sk323i wrote:

Could shopping around potentially impact me from being able to close on this one?

 

the rate is locked - but I could go to my current bank - and see what they can do. 


TL;DR - It costs you nothing to check in a 14 day period for mortgage inquiries, so I highly recommend it.  When they ask you to explain the inquiries on an LOE, "rate shopping" will suffice.  That's expected from more sophisticated borrowers TBH.

 

Technical details.

 

Within a 14 day period you can rack up as many mortgage inquiries as you want and it will be counted as a single inquiry from a credit impact perspective.  14 days is the smallest window of all of the scores used on a trimerge report (EX FICO 2), and if that's the low score and thus irrelevant you're at at 30 days for mortgage inquiry bundling I believe for EQ FICO 5 and TU publishes it at 45 days for TU FICO 4, but go with the smaller window.

 

You cannot get a guarunteed rate until you basically lock it, which generally requires payment of the appraisal fee plus possibly a little more for all lenders that I'm aware of.  That's a $500-$650 expense or so; however, you can absolutely just ask for an estimate from multiple places and see, and honestly you should.

 

My own path last week though I was asking for as close to 0 points as possible and PMI was mostly a wash with all 3:

 

Monday: asked Chase for an estimate and they checked credit.  Came back at 10% down, 3.75% and ~$1500 lender fee and about $750 in lender credits.

 

Wednesday: after talking to a RE friend of mine on this forum, did a sanity check with Sebonic who checked credit and came back with 5% down 3.5% with $0 in lender fees and lender credit. 

 

Friday: after finding a place, which was new construction, one of builder's preferred lenders was BOFA who was running an interesting credit (which I don't 100% know for a fact I qualify for regardless of what BOFA is saying) they came with 5% down and 3.25% and with a big lender credit which basically covers their 1400 lender fee, a bunch of other closing cost items, and even bought ~.5 points.

 

Knowing all that, I pulled the trigger on the loan app with BOFA, and I will probably hedge things with Sebonic cause I'm worried and an additional ~$500 I'm ok with as a lender hedge if it turns out I suddenly don't qualify.  As it was the LO at Sebonic was straight and to the point: because we have a 2-2.5 month close on the new construction, wasn't really any point in doing the deed right now because they weren't going to work on the file anytime soon which was totally fair and upstanding of them.  I also don't think rates are going to move appreciably upward in that time anyway, if anything might move down.  Actually in all frankness, if it wasn't a preferred lender with a godlike credit which most home purchases aren't, I would've taken the Sebonic deal without thinking twice as it's a good one and they close on time from all I was able to find out.

 

Total impact so far: 1 scoreable inquiry on all 3 bureaus, and $625 paid to BOFA so far with checking 3 lenders, possible additional appraisal fee if I get a bad feeling with BOFA though allegedly they're going to do a first UW pass next week because they're slow right now and I'm not in the same queue for them as the refinances so I might not need that fee at all as UW will catch the credit if I'm not legit on it (income caps).




        
Message 26 of 26
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