So today I am shopping around trying to salvage my upcoming home purchase after months of building delays. Back in May I signed a purchase agreement here in FL to build a house $218,250 with a builder and was pre-approved intending to use a VA-Loan 30yr Fixed. At the time my loan estimate was done in June through the builders preferred lender (one of those "use our lender we'll pay your closing costs") my rate was quoted at 3.875% with an estimated payment around $1323 (this was on the high end given what taxes and my Homeowner's insurance quote really are).
Anyways the builder took its sweet time to build and the house should be ready sometime this month. But they were giving me pains everytime I asked for a completion date because rates were rising and I was trying to lock. Well yesterday I got quoted from the loan officer that to lock in a VA 30yr Fixed would be 4.875%, 100 basis points higher. There is no way, no way that I will get passed the Underwriter at that rate because my DTI would be over 50% with a payment above $1450. (I have 1 car payment for $391-the only debt I have, and monthly gross income of $3570 per month).
So I started shopping around. NFCU posted a 30yr fixed VA loan at 3.75% with .625 points. I thought this was a typo because I thought it would require more points. But the person I spoke to said she can't believe the rate I was given by the builder's lender, that it might be a mistake. My FICO Scores are all around 750.
So I'm really considering doing an application with them. At 3.75%, my monthly payment could by less than $1250 which would be awesome. However, if I use someone other than the builder's preferred lender, then rather then getting a credit back at closing I'm going to have to shell out some more money. I'm willing to do it since I plan to be in the house at least 10 years but was wondering what the TRUE NFCU closing costs statement would look like compared to the loan estimate amounts I got in June. I want to try to estimate how much to bring to closing if I went with them. People have written good things about NFCU but also that closing costs estimates scare the living daylights out of them.
My loan estimate from the builder's lender estimated $13,799 in closing costs with $1445 as an origination fee credited by the lender, the VA Funding Fee $4692 rolled into the loan, my earnest deposit of $5,850 paid to the builder in May to be applied to closing costs/prepaids, and a seller credit of $4451 that would have seen me get $2639 back at closing, money I was hoping to use to buy the fridge & washer/dryer.
Am I correct to assume that NFCU would show about $3635 in Section A (1% Origination and 0.625 Points), $5142 in Section B VA Fees (Appraisal and Funding Fee)? What about Section C? My Loan Estimate Shows $2385 for survey, pest, title-courier, title-lender, and title-settlement). Section E has $3055 for recording and Transfer Taxes. Section F Prepaids has $942 (I did get my HI Premium quote of $410 annually which I can submit with the paperwork) and $825 in Escrow (Taxes $230 a month but $170 is the norm based on my house's size and millage rate for the zone it's in).
If I pay out the originazation and points fees and already have my $5850 being applied to closing/prepaids, how much more cash am I going to need to close? Can I get out with just $4K? Some folks have me scared the costs will be $10K or more even after what I already paid is taken into account.