First Time Home Buyer- Running thread

[cv91915]

Thanks CV, sent off 2 emails, ha.

 

[CreditNewb15]

Finally got ahold of Navy.

I have to call and call and call until I get ahold of the person, then it's just simple questions that could easily have been answered 3 days ago via email.

Glad I at least have an individual to work with.

 

 

Should get their more accurate preapproval later today, then I'll forward it to the local lender and see if she can compete.

[cv91915]

Finally got ahold of Navy.

I have to call and call and call until I get ahold of the person, then it's just simple questions that could easily have been answered 3 days ago via email.

Glad I at least have an individual to work with.

 

 

Should get their more accurate preapproval later today, then I'll forward it to the local lender and see if she can compete.

Three days without an email response? Repeated phone calls? This is why I would never again attempt to do a mortgage with a credit union. I'm 0/4 or 0/5 with various CUs. Complete lack of service and motivation to get the deal done.

[mendelssohn]

I never had that issue with Navy.

[CreditNewb15]

 

Finally got ahold of Navy.

I have to call and call and call until I get ahold of the person, then it's just simple questions that could easily have been answered 3 days ago via email.

Glad I at least have an individual to work with.

 

 

Should get their more accurate preapproval later today, then I'll forward it to the local lender and see if she can compete.

Three days without an email response? Repeated phone calls? This is why I would never again attempt to do a mortgage with a credit union. I'm 0/4 or 0/5 with various CUs. Complete lack of service and motivation to get the deal done.

 

 

The email situation was odd. I have the LO I work with. But someone who works with her (an assistant maybe?) reached out and asked about the email I had sent the LO. Then she just forwarded my response to the LO. Made no sense.

I can essentially never answer my phone while I am working. I have to leave the building to talk on it. So we played phone tag for 2 days.

 

 

I never had that issue with Navy.

 

It's irritating to me, but once I actually get someone on the phone, they are extremely helpful.

 

 

It's basically the same situation with the local lender. Once I have them on the phone, very accommodating and helpful. Getting to that point is frustrating.

Edited September 20, 2016 by CreditNewb15

[mendelssohn]

FWIW I only used email with Navy to send documents. I always used the phone for everything else.

[cv91915]

I never had that issue with Navy.

 

I know, and I'm glad.

 

I think you'll agree, though, that multiple unreturned phone calls and unanswered emails is poor service.

[cv91915]

 

 

Finally got ahold of Navy.

I have to call and call and call until I get ahold of the person, then it's just simple questions that could easily have been answered 3 days ago via email.

Glad I at least have an individual to work with.

 

 

Should get their more accurate preapproval later today, then I'll forward it to the local lender and see if she can compete.

Three days without an email response? Repeated phone calls? This is why I would never again attempt to do a mortgage with a credit union. I'm 0/4 or 0/5 with various CUs. Complete lack of service and motivation to get the deal done.

 

 

The email situation was odd. I have the LO I work with. But someone who works with her (an assistant maybe?) reached out and asked about the email I had sent the LO. Then she just forwarded my response to the LO. Made no sense.

I can essentially never answer my phone while I am working. I have to leave the building to talk on it. So we played phone tag for 2 days.

 

 

I never had that issue with Navy.

 

It's irritating to me, but once I actually get someone on the phone, they are extremely helpful.

 

 

It's basically the same situation with the local lender. Once I have them on the phone, very accommodating and helpful. Getting to that point is frustrating.

 

 

Both originators we used this summer responded to emails within an hour or two, max. Often less.

 

Phone calls were answered live by each one, via a direct number, 100% of the time during business hours, and the person who answered (if not my LO) had access to my file and was able to help on the fly.

 

The only time I ever got voicemail during business hours was when I called one of the LOs on his mobile phone and he was in the dentist chair at the time. He called me back before the Novocaine wore off.

 

The occasional voicemail left after hours was returned first thing the following morning, sometimes a little too early since I was often traveling and on Pacific Time, and they were in the Central and Eastern Time Zones.

 

If the service you are getting doesn't measure up, you really should take your business elsewhere. They aren't doing you a favor by originating your loan, you are a customer.

Edited September 21, 2016 by cv91915

[CreditNewb15]

 

 

 

 

 

 

Both originators we used this summer responded to emails within an hour or two, max. Often less.

 

Phone calls were answered live by each one, via a direct number, 100% of the time during business hours, and the person who answered (if not my LO) had access to my file and was able to help on the fly.

 

The only time I ever got voicemail during business hours was when I called one of the LOs on his mobile phone and he was in the dentist chair at the time. He called me back before the Novocaine wore off.

 

The occasional voicemail left after hours was returned first thing the following morning, sometimes a little too early since I was often traveling and on Pacific Time, and they were in the Central and Eastern Time Zones.

 

If the service you are getting doesn't measure up, you really should take your business elsewhere. They aren't doing you a favor by originating your loan, you are a customer.

 

 

And that's what gets me.

I'm asking for pretty standard stuff. Nothing overwhelming to them. And it's not that they aren't helpful, but even being mildly inconvenienced while you are poised to make tens of thousands of dollars off me is irritating.

 

We'll see. If I don't get the updated preapproval, I'll look into my personal bank- although I'm pretty sure the offers won't be as good.

Edited September 21, 2016 by CreditNewb15

[CreditNewb15]

Starting the process with my own bank.

 

Both lenders seem to be dragging their feet for some reason.

[CreditNewb15]

Lender 1 has come back with write ups.

I asked them to show me options that would reduce cash out of pocket.

 

The standard FHA option is probably out because we're looking at around $20K out of pocket. I don't love the idea of cutting out that much of my savings before I even move in or furnish the place.

But thanks to creditboards, that option gets me a 3.25% interest rate.

 

FHA option with closing costs rolled into the loan amount puts me at about $10K out of pocket, but a 4% interest rate. I know that the $10K up front now would be FAR more cost effective of the life of the loan.

I think I'm willing to take the hit just to preserve more savings. PMI puts me at an estimate about $40/month more than Navy.

 

 

 

I don't have the official letter from Navy yet, but we talked over the phone.

It's my understanding that they will have me pay all closing costs. About $4-$5K. 0 down.

Tack the "funding fee" on top of the cost of the home (with a jump in interest rate too).

Eliminate the origination fee in exchange for a jump in interest rate.

That scenario would put me at a 4.75% interest rate.

 

 

 

So, based on estimates only, the monthly payment would be extremely similar. With Navy, I'm out way less cash. With Lender 1, I'm out more cash, but I have a lower interest rate and at least SOMETHING put into the home itself.

Navy would start me off with a mortgage at 101.75% of the home's value/purchase price.

[Brian B The Loan Professor]

That 4% with costs rolled in seems very high? Sorry I didnt review the whole thread what is the price range?

[CreditNewb15]

That 4% with costs rolled in seems very high? Sorry I didnt review the whole thread what is the price range?

 

Yes, it's a .75% increase just in exchange for rolling about $5,000 into the cost of the loan.

My brain might be fried and I might be looking at this all wrong.

Lender 1 also has about a $5,000 funding fee as well.

 

Cost of home is about $275,000.

Edited September 26, 2016 by CreditNewb15

[CreditNewb15]

I got an approval letter from Navy as well.

This is ALL it lists:

 

Price of home

+ funding fee

= total loan amount

 

interest rate

 

 

 

There is no estimated taxes, insurance, or closing costs.

Is that normal? I emailed back and asked for those estimates but I'm not sure if that is something I can even ask for.

[mendelssohn]

They should give you an estimate on those things as well. They gave me estimates of those numbers. Their tax estimate was about $2K higher than the actual taxes BTW, but it was corrected later.

[CreditNewb15]

Thanks mendelssohn.

I'm really surprised that this is like pulling teeth to get everything from the lenders.

 

Even my local bank sent me to the phone to contact the centralized mortgage office.

[CreditNewb15]

Going with the local lender.

I emailed Navy on Tuesday morning to ask for an estimate of closing costs, insurance, etc and have never heard back. Not even an acknowledgement.

 

So, the 4% from the local was actually a bit of a high estimate. LO said the rate would have been 3.8% that day but she prefers to round up so clients don't get upset if it's higher than the estimate.

It's a big jump in rate to roll closing costs into the loan.

 

Was surprised to learn that the downpayment isn't due until the closing date.

So, 1% earnest money down when we sign the contract with the builder. Then 3.5% down when we close. 1% earnest money is applied to closing costs. Whatever remains is added to loan.

[cv91915]

Going with the local lender.

I emailed Navy on Tuesday morning to ask for an estimate of closing costs, insurance, etc and have never heard back. Not even an acknowledgement.

 

So, the 4% from the local was actually a bit of a high estimate. LO said the rate would have been 3.8% that day but she prefers to round up so clients don't get upset if it's higher than the estimate.

It's a big jump in rate to roll closing costs into the loan.

 

Was surprised to learn that the downpayment isn't due until the closing date.

So, 1% earnest money down when we sign the contract with the builder. Then 3.5% down when we close. 1% earnest money is applied to closing costs. Whatever remains is added to loan.

 

If you provided any of these places will all six of the following they must provide you with a Loan Estimate within three business days:

 

- consumer’s name

- consumer’s income

- consumer’s social security number to obtain a credit report,

- property address,

- estimate of the value of the property,

- and mortgage loan amount sought

 

If any of these jackasses are out of compliance I'd file a complaint. This is ridiculous.

 

http://files.consumerfinance.gov/f/201509_cfpb_readiness-guide_mortgage-implementation.pdf

[Brian B The Loan Professor]

While it is no way to do business until there is a contract there is no

Obligation to provide a loan estimate.

 

A loan estimate also hinges on the title company providing the lender with their estimate.

 

Good luck with the purchase

B

[cv91915]

While it is no way to do business until there is a contract there is no

Obligation to provide a loan estimate.

A loan estimate also hinges on the title company providing the lender with their estimate.

Good luck with the purchase

B

I disagree, and the CFPB links I provided in this thread support my position on the trigger and on the timing requirements for the LE. I would appreciate a correction if you have more recent CFPB links than the ones I have.

[Brian B The Loan Professor]

The links are correct - it is your interpretation of address that is where we disagree

If you apply to refi the clock starts right away - the property is clearly identified and you can legally borrow against that home (you own it)

If you are buying you cannot legally borrow against a home until you are in contract with the owner - Until you are in contract the bank has no obligation and no 3 day clock - once in contract the clock starts for the bank - otherwise someone could call in and say there are 17 houses they are considering and ask for an LE on all of them - That is a bit extreme to make the point - the other point is while the bank is obligated they can and often are put in a tough spot by title companies not providing the needed estimates in a timely manner - may not be the lenders fault -

 

With the agents not responding for days at a time there are issues with these agents = obviously it is not how they should be handling their clients =

[cv91915]

The links are correct - it is your interpretation of address that is where we disagree If you apply to refi the clock starts right away - the property is clearly identified and you can legally borrow against that home (you own it) If you are buying you cannot legally borrow against a home until you are in contract with the owner - Until you are in contract the bank has no obligation and no 3 day clock - once in contract the clock starts for the bank - otherwise someone could call in and say there are 17 houses they are considering and ask for an LE on all of them - That is a bit extreme to make the point - the other point is while the bank is obligated they can and often are put in a tough spot by title companies not providing the needed estimates in a timely manner - may not be the lenders fault - With the agents not responding for days at a time there are issues with these agents = obviously it is not how they should be handling their clients =

 

The regulations I've read make no distinction between a refi and a purchase, and are very clear that the consumer does not have to provide any documentation -- including a contract, or even a statement that a contract is in place -- in order to trigger the LE requirement.

 

The guidance from CFPB is clear on this. This is not my interpretation.

 

I would appreciate a link supporting your interpretation so I don't mislead anyone on this.

 

Beginning October 3, 2015, loan officers are required to provide you with a Loan Estimate once you have provided:

 

• your name,
• your income,
• your Social Security number (so the lender can pull a credit report),
• the property address,
• an estimate of the value of the property, and
• the desired loan amount.

Your loan officer cannot require you to provide documents verifying this information before providing you with a Loan Estimate.

[Brian B The Loan Professor]

Not going to argue with you - you can look at it any way you want - until you show me a link that clearly says something different we can just agree to disagree

 

Loan Officers are not required to do all of that work just because someone is interested in a home - they should be willing to but again willing to and obligated to are different - they are under no obligation until the time when the borrower can legally borrow on the property - which means being in contract for a home that you are not the owner of -

 

 

Take Care -

[Brian B The Loan Professor]

 

 

A: Regulation Z defines consummation as: “the time that a consumer becomes contractually obligated on a credit transaction. See 12 CFR 1026.2(a)(13). The Commentary to Regulation Z states further that the point at which a “contractual obligation … is created” is a matter of state law. 12 CFR 1026.2(a)(13)-2.

[cv91915]

Not going to argue with you - you can look at it any way you want - until you show me a link that clearly says something different we can just agree to disagree

 

Loan Officers are not required to do all of that work just because someone is interested in a home - they should be willing to but again willing to and obligated to are different - they are under no obligation until the time when the borrower can legally borrow on the property - which means being in contract for a home that you are not the owner of -

 

 

Take Care -

 

 

http://files.consumerfinance.gov/f/201503_cfpb_tila-respa-integrated-disclosure-rule.pdf