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First Time Home Buyer- Running thread

The last post in this topic was posted 1333 days ago. 

 

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Don't !! Why cause any waves if you don't have to

 

Because it's better to know in advance than to have a surprise problem at the last minute.

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Will a couple INQs for limit increases bother the lender?

 

 

 

The score they used was over 750, so I can't imagine a handful of points will matter for an FHA loan.

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I'm not ignoring advice, so please don't take it that way.

Totally understand that touching your reports in any way before a close is not a good idea.

 

 

 

I have to BT about $9K within the next 3 weeks.

DTI will not be an issue. I'd still end up between 35%-38%, including the mortgage. And that is an extremely conservative estimate.

 

My concern was with utilization.

If I can get a CLI bump, then I can keep util under 20% at closing.

 

I might* try a US Bank business card that has a BT option.

But either way, it is very possible that a TU inquiry will show up.

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Just kidding.

 

My LO is somehow unable to tell me HOW my earnest money will be applied.

 

For some reason, she is under the impression that I still have to choose what "option" I'd like, RE: closing costs.

 

 

 

Are these terms synonymous?

'Rolling closing costs into the cost of the loan" and "lender paid closing costs".

 

I don't think they are.

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Your earnest money goes towards the down payment - if there is any left then you can chpose what to do with it?

On a purchase you CANNOT roll the closing costs into the loan - To avoid out of pocket you either need a seller credit towards closing costs -for you the outcome is that the costs get rolled into the loan for the seller they get less at the end because they allowed you to use part of their share to cover the closing costs

You can tae a higher rate and get a credit from the lender to help with the closing costs

 

If your LO isnt able to communicate these simple things to you what is that they are doing???

 

B

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If your LO isnt able to communicate these simple things to you what is that they are doing???

 

 

 

Confusing the hell out of me is about it, as far as I can tell.

 

This must be why none of them like using email as the primary form of communication.

 

 

 

 

I think at 4.00%, I took the higher rate to have the lender cover the closing costs. Which is what I intended. But if 4.00% was the rate for my paying closing costs, and that does not account for the lender paid closing costs- well, that is not what I intended.

Thanks for the response.

 

 

 

 

Assuming the lender paid closing costs and the standard 3.5% down for FHA, is my math correct?

 

Sale Price: $300,000

3.5% down: $10,500 = ($300,000 * .035)

Earnest money: $3,000

Total $ needed at closing: $7,500 = ($10,500-$3,000)

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I ended up having to meet with her to get this explained.

 

The 4% was also only if we paid closing costs, which she knew I did not want to do.

 

Other option is 4.5% rate.

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When is your house closing? This has been a great thread to read on an early Saturday morning with little sleep, but lots of coffee!

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New buyer here. Made it through AUS with no issues thus far. Tentative closing 1 Feb.

 

VA Loan, high DTI but good income. Start a new job Jan 9, but in the same field for the past 10 years. He also imputed my second job about $1200 less per month than what I actually make (military reservist) and I still made it through AUS. I busted my tail since October and got a medical collection and two 30-day lates (boneheaded move on my part - thought everything was on auto pay when I went to a military course where I was cut off from the outside world.) They removed, scores shot up and I got better rates. Took 2 points at closing to cover closing costs (won't need all of it 0 down and 2500 in earnest money.) Ended up at 4.5% with the two points. Mid score was 650 up from 609. I'll streamline refi in 6 months (hopefully rates are flat but I'm not holding my breath. Either way I'm ok with it)

 

For informational purposes:

 

Went with Veterans United and they have been an absolute joy to work with.

$121K Gross

Home Price $319,900

DTI hovering right at 50% after house payment input, but with income lower than what I actually make.

 

As soon as I close, cards are getting paid off. I'm saving cash "just in case" but plan to be at under 40% DTI (or more) by the end of 2017. I have a budget that has me paying off the boatload of debt I acquired during a divorce and custody battle by 2019. I was thisclose to filing bankruptcy, but then got a better job, and am going to stick it out. I've got flexibility in my budget, but even if I can pay down the majority of my debt in two years, I will be happy. I'm hoping that, as I pay down things, 0% BT offers will come in, and I can play that game to pay off even more. I'm also in the final approval stages of a 100% VA disability claim (cancer, so that sucks but at least it's an extremely treatable version) but all of that will go towards paying off debt. It's temporary but I'll have a permanent rating once that's done as well.

 

Tentative close Feb 1. Appraisal has been ordered. This is new construction that has say on the market a year. I am prepared to walk if it doesn't appraise, but since the appraisal sticks with the house for a while, and it's been on the market so long, I have a feeling they will come down IF NEED BE. I've just heard that VA appraisers are really strict.

 

This is absolutely a huge accomplishment for me based on things I've been through recently. I just hope that everything goes smoothly in underwriting and for the appraisal.

Edited by garcias06

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When is your house closing? This has been a great thread to read on an early Saturday morning with little sleep, but lots of coffee!

 

28 February

 

They are trying to get me to close sooner because the house is done already.

LO was able to easily explain to me what I needed to know in person, but somehow struggled to do so via email.

She's OK, just not good at email apparently.

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I'm scheduled to do the first walk-through with the builder representative next week.

 

The house isn't done yet. I mean, it's mostly complete but there is still some cosmetic stuff that isn't finished.

Is this normal?

I've got a running list of stuff that isn't ready, but surely we aren't going to do a walk-through and have them just say "oh yes, we will get that done" to everything?

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I'm scheduled to do the first walk-through with the builder representative next week.

 

The house isn't done yet. I mean, it's mostly complete but there is still some cosmetic stuff that isn't finished.

Is this normal?

I've got a running list of stuff that isn't ready, but surely we aren't going to do a walk-through and have them just say "oh yes, we will get that done" to everything?

It depends on the severity of the issues. When I showed up for the walk-through on my home, the builder had installed the wrong granite in the kitchen, painted the interior of the entire house the wrong color, put in the wrong garage door and there was no sliding screen door onto the patio, no AC unit and no utility meters present.

 

They told me, "Don't worry, we'll take care of you." I refused to close until all of these items (except the missing screen door) were addressed.

 

This obviously delayed my closing, and I ended up having to stay with a relative for 24 hours since I had a hard deadline for moving out of my old place. Not only did they fix everything, they compensated me for the delay.

Edited by cv91915

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It depends on the severity of the issues. When I showed up for the walk-through on my home, the builder had installed the wrong granite in the kitchen, painted the interior of the entire house the wrong color, put in the wrong garage door and there was no sliding screen door onto the patio, no AC unit and no utility meters present.

 

They told me, "Don't worry, we'll take care of you." I refused to close until all of these items (except the missing screen door) were addressed.

 

This obviously delayed my closing, and I ended up having to stay with a relative for 24 hours since I had a hard deadline for moving out of my old place. Not only did they fix everything, they compensated me for the delay.

 

 

Not worried about closing on time.

I don't do that until the end of February.

And this is just small time stuff. Light fixtures, shutter color, some minor exterior features.

 

I just thought it was kind of silly to schedule this when we are obviously going to have to do at least 1 more before closing.

And then probably one at closing too.

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It depends on the severity of the issues. When I showed up for the walk-through on my home, the builder had installed the wrong granite in the kitchen, painted the interior of the entire house the wrong color, put in the wrong garage door and there was no sliding screen door onto the patio, no AC unit and no utility meters present.

 

They told me, "Don't worry, we'll take care of you." I refused to close until all of these items (except the missing screen door) were addressed.

 

This obviously delayed my closing, and I ended up having to stay with a relative for 24 hours since I had a hard deadline for moving out of my old place. Not only did they fix everything, they compensated me for the delay.

 

 

Not worried about closing on time.

I don't do that until the end of February.

And this is just small time stuff. Light fixtures, shutter color, some minor exterior features.

 

I just thought it was kind of silly to schedule this when we are obviously going to have to do at least 1 more before closing.

And then probably one at closing too.

 

 

Well, if closing is that far away, of course not everything is ready.

 

If there were any structural options done incorrectly, this would be the time to catch that. When my parents' house was built, the framing contractor forgot to put in three large openings in a wall between the living room and the family room. It would have been a disaster to discover this at closing (or really anytime after the wood floors were installed).

 

Also, later in the process the flooring contractor put in the right tile but in the wrong pattern in both their laundry room and one of the guest bathrooms, and we caught that early. The builder offered to credit back the cost of the tile, which they accepted. They also missed one detail in how the wood floor was installed in the entry, and we had that corrected quickly (but well before closing).

 

If you didn't select many options/upgrades, then these visits may not be necessary, but if you've upgraded things it's better to find out along the way when they're not done correctly, rather than right before closing.

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I should mention that this place is on my way home from work so I stop by at least 3 times a week.

There won't be any major issues.

 

But I guess it makes sense that the builder wants to officially know that I am on board instead of assuming I'm a normal, rational person.

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Messed up the name on the 4506-T for the IRS. Got kicked back. Re-did them and sent them back off same day. Appraisal was today. Cross fingers we can still close on 1 Feb

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So we did the walkthrough a couple weeks ago.

No major issues of course. Just paint touch ups and some electrical fixes.

 

Here's my concern: the electrician has no opening to install the light fixtures which go above the garage door. The fixtures are still sitting in the kitchen pantry closet, unused.

I know the builder will fight me on it, because Phase 1 had the garage lights, only half a Phase 2 did, and ours is the first house in Phase 3. I'm certain this is one of the "aesthetic choices" that are being cut.

They also cut some decorative mailboxes and are skimping out on 1 set of shutters? I don't get it, but I just know they're going to tell me to kick rocks when it comes to the garage lights.

 

How can I approach this? I'm no electrician, but I'm certain they would have to remove drywall, lay wiring up a new wall, put a box INTO the brick exterior somehow, then repair the drywall.

No way is this a simple or inexpensive fix.

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Were the lights in your agreement or in the architect plans? I have no clue about the fix but if they are in your agreement/plans I would raise it ASAP so they can get it fixed. If they are not specified it might be harder to get them added now.

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Were the lights in your agreement or in the architect plans? I have no clue about the fix but if they are in your agreement/plans I would raise it ASAP so they can get it fixed. If they are not specified it might be harder to get them added now.

 

It's not specified.

In fact, it IS specified that some aesthetic plans from other phases are not part of this phase, but with no specifics. From what I can tell so far, it has been type of shutter, decorative brick patterns, upgraded driveways, different mailbox, etc.

 

But I have the fixture sitting there that presumable, I have already paid for, and they will surely insist that they will not install it.

Edited by CreditNewb15

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Closed 1 Feb! High DTI, VA Loan. Time to tackle the debt portion of it now that I have stable income, a $20K annual increase in pay from my last employer, and no baddies on my report - just high balances. Divorcing a narcissist SUCKS. But it's done and over with and I'm moving on to bigger and better things. Good luck to all who go through the process. I would definitely recommend Veterans United for a VA loan. They were awesome.

 

Oh, and underwriting will always suck and they wait until the last minute to give a clear to close. You will have small panic attacks multiple times throughout the process. I'm told that's normal.

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Got the keys yesterday.

 

PNC would not allow me any debit transactions of more than $2,000 a day.

I don't live in the PNC servicing area anymore so I couldn't go to a branch and withdraw what I needed.

 

I spent about 2 hours on the phone with customer service, my lender, and PNC's wire transfer department.

Was able to get the wire transfer completed (was EXTREMELY cumbersome) with the 3rd person I talked to.

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