I tried to google my answer and I came up empty handed, what better place to ask any credit related question but the wonderful people at Creditnet?! Ok, got a good faith estimate, 2 actually. First one very generic based on "hey we want to buy a house for no more than $XX", Newest one is specific to a house that we have been approved to buy (offer and all have been accepted), and a few more fees have shown up, which I expected (title charges and such.) One fee that changed is under line 812 (wire transfer fee) originally it was written in DOC PREP FEE $250, the newer GFE says DOC PREP FEE/QC $495. I wanted to know what the heck the QC is, and is that what made the price double. I will be talking to my mortgage broker on Thursday (she is out of town til then, and well I'm impatient and was hoping someone out there knew the answer. In case it matters, it is an FHA loan, but it was all along. Thanks all!
Watch out for Broker admit fees too. When I was in the buisness certain offices would charge 250.00 for a nothing fee, FYI if the realtor wants to charge you that tell them to waive it. Trust me they will
Organized crime is right on! The worst part is the broker is the wife of the realtor. I LOVE the realtor, the wife, not so much. We got a newer GFE cause I called her out on the rate, she was quoting 7, scores are mid 700's and per myfico.com we should get around 6.4...she locked us in at 6.5 BUUUUUUUUUUUUUUUT she is now asking for W2's from 2006 and wouldn't you know it I have W2's from 1998-2005 then I have 2007's. We filled out the 4065T form so they can get it, but they want us to do the leg work (and did I mention the underwriter fee is $799.) So we really want this house BAD. Hubby had THREE jobs in the beginning of 2006, I saw a company called AccuVerufy (dot com) and they charge $18 to get whichever years W2's you need in 2 business days (as opposed to the 30-60 days the IRS quotes), my question is if we e-filed that year and didn't send the IRS copies of the W2's how would anyone have those copies other than the employers? I'm looking for the fastest way to get them, and any clue why they won't accept the actual tax return? Thanks all!
They can use tax returns. However, if anything is written off on those tax returns, they would have to use the Net income before taxes as qualifying income. In addition, if you own rentals currently, your Schedule E will probably reflect write-offs to offset the rental income. In this case, it would hurt the rental qualifying income. If you do not write anything off on your tax returns, they will accept 2 years tax returns in place of W2's. IF your broker says NO, tell him he can according to FHA, Fannie Mae or Freddie MAc guidelines (to however they are underwriting the loan) Doc Prep QC is Quality Control Doc Preparation Fee. If your broker is BROKERING the loan, that is a standard fee that he does not see any revenue of. If your broker or banker is underwriting the loan in house(he is funding you), the bank he works for keeps that. It is a normal expense. If you need some extra help to improve your interest rate and lower your closing costs, PM me and I will you give tactics to minimize your closing costs and get a discounted rate.
Thank you banker! 2006 he didn't write off anything he was a legit W2 employee, 2007 he is a statutory employee, but I have the W2s from last year. I'll have to look up the FHA guidelines so I can quote a specific area. I thought about calling the employer(s), but he had 3 jobs that year, and I really didn't want to go that route... Thanks everyone!
Any idea why the mortgage broker would pull a hard inquiry on Friday, and then a soft one Saturday? When I click on the soft inquiry it says :On behalf of CHASE WHOLESALE EMAGIC D for SECONDARY LOGGING : HUH?
The hard inquiry was for a credit check. EMagic is a website to run automated approvals directly with FHA, Fannie Mae or Freddie Mac. In other words, in today's environment underwriters will rarely approve a file that gets a rejection from FHA itself. Emagic was run to get an approval directly with FHA. Then the undewriter follows the conditions that are listed on the automated approval. The underwriter has the discretion to deny a file despite an FHA Approve/Eligible but that will rarely happen. Everything you have stated thus far is standard.
I decided to check around with other banks. I was tired of calling our accountant because the broker "normally doesn't do that", and faxing things that were already faxed 2 days prior, but she couldn't find them. So, USAA approved us at 5.875%, with 10% down, which is doable because the closing costs are a lot less. Plus the payment is LESS than our rent is. I hope to God that this is less painless.
Actually today's rate on an FHA loan is 5.375% fixed 30 year mortgage with as little as 3% down depending on your income qualification. 5.875% is very high for today's market.
I don't know if it matters, but we have swicthed to conventional. The last broker (who was going FHA) had us locked in at 6.5% and you would have thought she gave us the farm. I didn't like how she told us point blank, "I took a pay cut so you could get a better rate." She may take a HUGE pay cut now, I'm getting all my dukcs sent over to the new bank now....
So on the day of closing the banks decides they are unable to finance us unless we put down 20%. We were doing 10%, and the house also appraised at $30K MORE than the accepted offer. I am so disappointed in this economy, moreso myself for getting all worked up thinking this was really about to happen.... on the bright side, gas prices are looking so much better!!
I dont understand why the second lender/broker took you out of FHA (unless they arent approved to do FHA). FHA is over 50% of our business right now. And if you had enough to do 10% down you should have definitely been approved FHA. If your income, credit, job history, etc., met conventional guidelines you should have been able to meet FHA guidelines as well and been approved with only 3% down. And as far as the broker telling you she was "taking a pay cut" at 6.5% FHA a week ago....well, if making about 2.5 points off of you in yield is taking a pay cut then maybe so. Rates, as someone said above, were about 5.375-5.5% a week ago on 30 yr fixed FHA... If someone were quoting you 6.5% today that would be a good deal, since mortgage rates have ballooned about 3/4% in the past three or four days.
