Wooo Hoooo!!! Just got off the phone with First Franklin

[gigagirl]

As I write this - the agent at First Franklin is getting a pre-approval letter for me (YES - Approval, different than qualify) for up to a $200,000 mortgage!

 

Of course I don't want to go that high because I know we can't swing that (my paperwork may say so, but I know our real expenses!). We'll be comfortable with 170,000 or so.

 

Anyway - for those of you who may not know. DH and I just finished a Chap13 BK - discharged in 3/4.

 

Because of THIS CREDIT FORUM - I learned of First Franklin and got up the nerve to call to see what they could do for us.

 

The agent was thrilled with my credit scores and since I am the main wage earner in the house he is going to use my scores and he said we qualify for "A" paper loans!!!

He didn't ask me about any current tradelines as a qualifier.

 

The best 100% finance offer was 80/20 with the 80 at 5.5% and the 20 at 7.625% with one point and NO PMI!!!

This blends to 5.9%

 

I'm pretty happy with this rate!

 

Probably the biggest hurdle will be the closing cost money - we will be tight on this.

 

Thank you all for your guidance and encouragement - I'll keep you posted.

Guess DH and I will be house hunting soon!

 

-gigagirl

 

FICO

TU- 745

EX- 732

EQ - 698

[BizCredit]

GET A SELLERS CONSESSION FOR CLOSING COSTS....

[gigagirl]

Yes, that's what I'll try for, but ultimately that won't that limit the overall dollar amount of house I can buy?

[jwebb37]

That is soooooo awesome!!!!! That gives me hope. So basically they don't really care about the bk??

[kgkoon]

Pre-approval still means nothing until the underwriters approve it.

[gigagirl]

Basically - NO - he said they can deal with BK a day after it's dischaged. I also think my situtation was so easy because of my credit scores, my current low debt to income ratio and no other 'baddie' on my reports (just the BK).

 

Things are happening VERY fast - they've already got a LendingTree realator assigned to me and I should be hearing from her real soon! She will be MY agent, not a seller agent and when I close thru her, I will qualify for $850 CASH back (no strings attached).

 

I spoke with the broker about seller consession for the closing costs and was very encouraged about that prospect too!

 

All this and I haven't even spoken to my DH yet!!!

 

He's gonna kill me....I just had him convinced that we should wait till the BK was a year old and we had more money saved.

[jwebb37]

Gigagirl- How long did it take for you to get your discharge papers?

[melodist]

Giga-

 

Ask for a commitment letter that is contingent only on appraisal. Pre-approval is not really what sellers want to see. Once you have the commitment, you are like a cash buyer.

 

Good luck.

[Allie Mae]

Congratualitions giga. You have two options regarding closing costs. You can get a seller's concession as stated above, or you can ask your loan officer to increase your rate or lower the costs.

[gigagirl]

I'm still in the home shopping process and may be making an offer on a house in a few days!

DH called First Franklin to ask about interest only loan w/100% financing - we do qualify for this type loan and I would like some opinions between the two we are looking at.

 

The first is offer is: 100% finance 80/20 with the 80 at 5.5% fixed and the 20 at 7.625% fixed with one point and NO PMI.

This blends to 5.9%

 

 

The second is: 100% finance 80/20 Interest Only

 

1st mortgage - $160,000 loan amount / Program - 5/25 Interest Only Loan

 

Interest Rate+ 5.125%

Points or Credit+ 5.125%

Payment+ $683.33

APR 5.795%

Margin 3.375%

Lifetime Cap 11.125%

 

 

2nd mortgage - $40,000 loan amount / Program - 30/20 Balloon (S)

 

Interest Rate+ 7.875%

Points or Credit+ .000%

Payment+ $290.03

APR 7.875%

 

5.675% Blended Rate+

$973.36 Blended Payment+

 

 

No PMI on either

 

 

What factors should we consider when looking at these two.

The fixed rate one is pretty obvious to me, but what pitfalls if any are there to the interest only one?

 

I imagine we will stay in the house a good while. My boys are in elementary school and I would like to raise them in this area and school district - but who can tell where the future will take any of us!

 

Thanks in advance for any opinions.

-gigagirl

[Allie Mae]

It's completely a matter of how long you plan on staying in the property. If you plan to be there long term, why not take a fixed rate that is slighlty off a 40 year low?

[cattthy]

What was your income to qualify for these loans? I am thinking of going through them and I have a discharged ch13 too.

[gigagirl]

I think it around 65K - we have very little debt!

That's one good thing about going for a mortgage right out of BK - there should be very little debt, after all who can get any credit to charge up or loans to pay off while in chap. 13.

Mind you....I WILL NOT repeat the same mistakes we made years ago that got us in too much debt.

Good luck

[jwebb37]

Gigagirl- Have you made any offers yet?