The best strategy would be financially ready to buy a house this summer?

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My wife and I are hoping to buy a house late next summer. Currently, I see two paths to get to us on this issue. Which of these would be most effective in securing the lowest mortgage rates in the U.S.? Background: My wife is a very good FICO scores 740th He just rolled the $ 16K credit card debt unsecured personal loan. There is also $ 3,000 (about $ 80k it) of credit card debt. I have six years of unblemished credit history, but since the court decision against me (for ten years) I have a few limitations of credit risk that for about $ 2k total. My balance is now almost at the limit, but I’m on track to have a zero rate of January. At this moment, my FICO will rebound, it is only average. She is a teacher (which guarantees a very large proportion of permanent workers), the same company I worked for 15 aastat.OPTION NO. 1: We have a budget, track all of the loan to repay $ 16,000 in August (just a year after the abolition of the loan over four years). We want to approach absolute zero mortgage companies, household debt and about $ 10,000 deposit, which would achieve a 5-8 per cent of homes in our hinnaskaalas.OPTION NO. 2: We do not take such an aggressive approach to lending. Instead, we approach the mortgage companies just over $ 20K a down payment, zero credit card debt and personal loans remained at about $ 12.5K. The contribution would range between 10-16 percent of the price range we would vaatate.Minu the question boils down to this – if the application for a mortgage, it is preferable to have a modest down payment or any debt or personal loan balances (but not ready) and a greater contribution?
I’ll buy a house and got quotes from various major banks, and gave me the best offer for both (30 year fixed 6.75 (1 pt), second HELOC loan at prime plus 1% (9.25%). Plus I was already pre-approved. I never locked the rate, but I was told my rate locked a mortgage lender for me (they can do? I not ask them). I waited for the federal government lower rates (18.9). He sent me a statement of good faith and agree with the lock. loop agreement is said to float even noticed it said (1.125 pts to 1 pt we discussed earlier), but when I sent him, “he said in a locked state. He said he will try to request a price reduction. Did he do when he rate is already locked? When we go to another lender who will give us a better rate than we have to pay appraisal fees, processing fees, application fees, credit fees letter, and so on? Although we did not verbally or write anything they want us to charge Keyguard? Thank ette.Ma I forgot to mention the income of non-conforming jumbo loans, second home, but a resident CA, and the median FICO score is the 760th is to provide a penalty. 10% less. purchase price of $ 861K.

13 Comments
  1. Reply
    philospher77
    February 18, 2011 at 7:20 pm

    A very good question. Personally, I’d stop by my bank and see if I could ask the person who handles the mortgage loans what they thought.

  2. Reply
    godged
    February 18, 2011 at 7:25 pm

    Even if you can get an FHA loan, you are going to need 3.5% down and money for closing costs. With option #1, you are going to be tight on having enough money to do this.

    What I would strongly suggest is that you meet with a local lender who can sit down with you and see exactly where you are and where you need to be to buy next year.

  3. Reply
    Rudy
    February 18, 2011 at 7:49 pm

    Go talk with a couple of lenders and see what they say.

    I however feel you should pay off debit first. Debit cost you money in the form of interest.

  4. Reply
    Janet P
    February 18, 2011 at 8:43 pm

    Wait until the judgment comes off your credit, it is 10 years, so you are close.

  5. Reply
    tdbearsmom
    February 18, 2011 at 9:39 pm

    i would think i was getting “ripped” off if that happened. you hired them to look after your best “interest,

  6. Reply
    Gregg
    February 18, 2011 at 9:50 pm

    Yes they can lock a rate for you, that’s what you pay them for. I don’t suppose you would mind if they locked a rate and the next day rates rose .5% would you? It goes both ways, as a broker you try to do the best for your client.

    As for the Fed cutting rates, that has nothing to do with your 30 year fixed as those are driven by bond rates, it may eventually effect your HELOC rate but that’s probably not something you are going to see immediately.

    No you don’t have to pay all the fees except possibly the appraisal fee (which you can still use) and the credit reoprt fee.

  7. Reply
    silviya
    February 18, 2011 at 10:04 pm

    The webguide http://mortgagehelp.assistancecenter.info

    has highly useful info on mortgage and home financing.
    You can get all your doubts clarified from the site.
    Check it out. Good luck!

  8. Reply
    WeLoan.Us
    February 18, 2011 at 10:17 pm

    I dont think you are getting ripped off, BUT taken advantage of a little yes. They should at the least make sure its ok with you before they lock your loan. Once they lock your loan its going to be hard to un do. Make sure they dont string you along on your lock, and tell them you wanted to wait to lock your loan, and you gave no one authorization to lock your loan

  9. Reply
    Mary B
    February 18, 2011 at 11:03 pm

    I used to work for Countrywide and here is what you need to ask your loan officer:

    Most of their locks have a cost-free, one-time float down option. That means during ONE time during the lock period, if the rates go down, they can re-lock your loan at the lower rate.

    With that said, don’t assume that the Fed announcement will show up in the mortgage interest rates…in fact, most experts are telling buyers and owners with ARM’s not to expect that.

    The purpose is to affect the PRIME rate in order for 4th quarter and 1st quarter 2008 foreclosure rates down.

    Countrywide CANNOT charge you for any of the above described charges unless your loan actually closed, and it sounds like you aren’t there yet.

    Be very careful about assuming that you KNOW the rates are going down. I have seen loan officers tell clients the rates are going down, only to wake up Monday morning and find out they went up. They watch the bond market more than anything else…that tends to be a better predictor of which way the rates are going.

    It’s a gamble, and I wouldn’t be working at all if I had a 100% predictor in mortgage rates.

  10. Reply
    Carolinahomerates.com
    February 18, 2011 at 11:25 pm

    depending on your credit score and LTV..

    if you put 5% down….the rates are at 6.125% with 1 point.
    But you will need a 680/720+
    CountryWide always has high rates.

    If you signed the lock agreement then you gave them permission to lock…some of they say THEY locked it as a sales technique.

  11. Reply
    stevelarsondirect
    February 19, 2011 at 12:03 am

    Are you self employed? There is no such thing as primary residence 2nd home. It’s either one or the other and that is important in determining if the rate is any good. Rates do not improve just because the Fed’s lower rates. In fact they have risen. While not ethical, they may have done you a favor by accident.

    So, to answer your question, no they cannot lock a rate without your permission. However, the pitfall of using a direct lender like Countrywide, is that once you are locked, it’s nearly impossible to undo. Mortgage brokers use multiple sources in order to have the better pulse on the market for you.

    Contact me to discuss alternative options even if it’s just for peace of mind to confirm IF you have a good deal or not.

    If you have any other questions, or need assistance, please contact me via my website http://www.slarson.com/contact or email me directly at Steve@SLarson.com

  12. Reply
    Ms Betty
    February 19, 2011 at 12:16 am

    First thing….. your rate and loan term is really “locked in” the day you sign loan documents. That is when it becomes legal and the deal. Until then, everything is just “an estimate”, hence the title “GOOD FAITH ESTIMATE”.

    Now asking is it right that they change the terms that they promised you before signing and at signing? That is an ethical question more than it is a legal question since nothing is guaranteed until you sign in escrow that 200 page stack of documents they call “loan docs”. And it goes both ways, your loan officer believes in good faith that you are going to close the loan with them but nothing prevents you from deciding at escrow you don’t want to sign…. regardless of all the hours and work your loan officer put into your loan and despite the fact the rate and terms were exactly as you discussed and expected.

    If you are unhappy with your lender, you have three choices:

    1. Talk to your loan officer and discuss the issues that you have and only sign loan docs for the rate and terms acceptable to you.

    2. Find another lender and explore loan options to see if they are closer to your expectations.

    3. Accept what you get and sign anyways (not really recommended).

    Maybe not the answers you wanted to hear but real estate is not like the grocery store where you can look at the produce and look at the sign for a price. And it certainly isn’t the “Triple Back Guarantee” that if the price is higher at the register you get the item for free or triple back the difference.

    Make sure you read EVERY document you sign and don’t sign anything you do not understand or accept!

  13. Reply
    jewls011
    February 19, 2011 at 12:30 am

    just because your loan is locked does not mean anything. nothing is final until you sign your closing docs. if you are not happy, try getting some other quotes. lending tree lets banks compete for your business.

    lendingtree.com

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