Mortgage Lender

[FelixDeCat]

right.

 

[olds]

OP doesn't need a bigger house, he needs fewer toys.

 

[UglyCasanova]

I forgot to mention, we keep the servicing of 95% of the mixed use loans we make which probably accounts for our bank having one of the lowest default rates I have ever seen. The rest are sold through the mortgage division to various banks. Out of the thousands of active loan files it is extremely low and every employee is aware of each one of them. You can count the number on your hands.

Do you happen to know your default rate on conv loans that go 90+ in the first year by chance? Or your HUD ratios? I'm just curious. The HUD ratios are the worst, because 1 loan can give you a ratio of 400+% which is absurd (depending on the denominator). It's become meaningless to everyone except the big guys.

 

[Brainonska511]

So we finally looking at houses, since the current 1600 ft is feeling kind of small for us and the kid.

1600 sq ft is small? Depending on the length of time you're looking to stay in a place, I'd be wary about going too big. Space might appear tight for a few years, but then kids move out. I grew up in a 3 bedroom ranch (but it had a finished basement) with my parents and 2 siblings. For a few years, it was tighter, but then people started going off to college. Now, 95% of the time in the year, my parents have more than enough space (if there was any more space, they would probably have to downsize at this point).

 

[MongGrel]

I know "we" don't, but I don't know that 130-something posts user knows the trolls vs. people giving genuine advice.

+1

 

[DrPizza]

You know, when you're trolling in most threads it just ranges from annoying to stupid. When you're doing it in a financial advice thread you're just a massive asshole.

I didn't consider it trolling, though with interest rates finally getting their first bump in almost forever, I'd be more leery about an ARM if I intended to remain longer than just a few years. I've had an ARM for 10 years now - I didn't want one; I wanted fixed, but couldn't find a lender willing to do a fixed loan on my current home, since it was a foreclosure in need of a heating system. If the OP intends to stay longer term, then, personally, I wouldn't do an ARM - but that's more of a hunch from me rather than financial advice that I would stand by.

One thing I do know from experience: STAY AWAY FROM LENDING TREE!

 

[nk215]

I would look into a lender which offers the most flexible recast programs.

My local credit union offers a special recast that also takes advantage of the current interest rate at the same time (typical recast does not change interest rate). One page application with around $600 fee vs. refinancing fees.

When I got my house, my local credit union also didn’t use a higher interest rate for “jumbo” mortgage. I think I changed their mind a year later.

 

[FelixDeCat]

Do you happen to know your default rate on conv loans that go 90+ in the first year by chance? Or your HUD ratios? I'm just curious. The HUD ratios are the worst, because 1 loan can give you a ratio of 400+% which is absurd (depending on the denominator). It's become meaningless to everyone except the big guys.

The overall rate is something like 1/10th of 1 percent.

 

[Phoenix86]

I didn't consider it trolling, though with interest rates finally getting their first bump in almost forever, I'd be more leery about an ARM if I intended to remain longer than just a few years. I've had an ARM for 10 years now - I didn't want one; I wanted fixed, but couldn't find a lender willing to do a fixed loan on my current home, since it was a foreclosure in need of a heating system. If the OP intends to stay longer term, then, personally, I wouldn't do an ARM - but that's more of a hunch from me rather than financial advice that I would stand by.

One thing I do know from experience: STAY AWAY FROM LENDING TREE!

They are going to start to look more attractive for sure, ARMs are the debil. In general I think fixed is better because it's less of a gamble, but if the terms are attractive enough and the situation is right they are fine.

I just took issue with the flippant advice. If he's truly a financial adviser he knows enough to ask questions first.

 

[BadSweetums]

Good hunting. 740 FICO should help a lot.

May I suggest looking at new construction. I lucked out while home shopping during the Great Recession. Other buyers were "stealing" all the properties that I wanted; OR, the sellers were offering seriously screwed up sales.

Then, after walking thru a resale in a sub-division that was still under construction, I saw a great model home. AND, the builder guaranteed financing (to qualified buyers) with just a $1,000 deposit. I'll skip the other cool stuff that I got for buying while the market was cratering.

I just want to say that if you look around you may find a builder (like mine, Adams Homes, sorry no projects in Texas) with a similar promotion, a good reputation, a good location and a standard model that meets your wants.

We bought more than 2,500 square feet in a gated community served by the best local public schools for under $225K. YMMV. Good luck.

You might try searching for a local organization like my local home builders and contractors association. You should also see what kind of financial info is available about builders that you are considering. Entrepreneurs and start-ups can be great but a successful builder with a strong record of delivering what they contract for is nice too.

One more thing. If you buy new, ask if they can use storage trusses for your roof. My builder couldn't (not flexible enough to ask their supplier if they could swap storage trusses for the standard design) You might not be able to add living space in your attic crawl space; but storing crap out of sight for free would be a lot easier without having to dodge all the bracing under my roof.

 

[JM Aggie08]

We had a mortgage broker shop around for the lowest interest conventional loan she could find. Odds are that your loan is going to get sold several times either way.

Ours finally ended up with Roundpoint. No major complaints with them.

 

[nisryus]

Have appointments with a local CU and bank, and also with two independent lenders.

One of them even emailed me all the price break down in detail.. with no closing close!

 

[nisryus]

1600 sq ft is small? Depending on the length of time you're looking to stay in a place, I'd be wary about going too big. Space might appear tight for a few years, but then kids move out. I grew up in a 3 bedroom ranch (but it had a finished basement) with my parents and 2 siblings. For a few years, it was tighter, but then people started going off to college. Now, 95% of the time in the year, my parents have more than enough space (if there was any more space, they would probably have to downsize at this point).

Yeah we thought about that too. But once a year in-laws come visit us and they had to stay in hotels each time, so a bigger house will help a bit.