I was pre approved for a fha mortgage loan for a max. of 160,000 at 7.5% not locked. I was told not locked was not a good thing that the loan should be locked are the rate could go up on me.We made an offer on a house already that is selling for 155000 but we asked for closing cost and he said he would pay 3100 closing cost but raised the price to 159000.The broker told me he is required to pay closing cost in a fha loan so counter back at the selling price or 156000 and tell him that he has to pay all of closing since its a fha loan. Please help all this is confusing.My broker also said that closing can be anywhere from 3-5%. I really need some advice, I have til tomorrow to counter offer or just find something eles.
First of all congrats on your approval. Second, It sounds as if you are not working with a buyers agent. If you are not, GET ONE NOW. They cost you nothing (it comes out of the sellers agents commission). Unless the market it your area is really hot for sellers there is no reason to pay full asking price. Also, he is NOT required to pay your closing costs. It sounds as if you really need an agent. What are the contingencies of your agreement? What are theirs? What are your credit scores? 7.5 is a bit high, and when it is not locked you may be getting somthing a lot higher. It is a very good idea to look at a ton of houses. Before making the offer on any home, think about what the MAX is you will pay, and what it will cost you to improve the home or to add features that you feel you need. Do not go over this amount. Also, be sure that a warranty is added to your agreement. If you are putting all your money into the purchase of your new home, and something costly happens (furnace goes out, roof is leaking) the cost will be very minimal. Again it is VERY important that you get an agent. They are looking out for you. Not getting one could cost you a ton of money and a lot of headaches.
