I need your advice on what my next step should be....here is my story We have been looking to buy a house for the last 8 months, we were pre approved with the mortgage company in july, I have been working on our credit since May and did a pretty good job at it, except a stubburn TL that is cemented to the paper, at least 1 out of 3 deleted it. I have written about it here many times. but one CRA is reporting "no status" the other CRA I just sent for the up teenth time a dispute with proof, waiting on results. Anyway we finally found the house for us, Finally, in a decent price range which would be a good monthly payment that we could handle. So we make an offer asking for the seller to help with half of the closing cost, he said YES, so now everything looks good, we sign the contract with the realtor and off happily we go. Well the mortgage broker said we are getting 100% financing (Conv. loan) and we can ask the seller for up to half of closing cost, ( in july this was said to us from her) so to include that in any offer. We did, it was accepted. So I call the mortgage person tell her all about it and she says come on up to the office and we will order the appriasal, bring $$. I get there and she has this dissappointed look on her face and tells me that the program /convential loan we are seeking will not allow the seller to assist in closing and we must come up with $10,000 for closing. But must be in the bank by Dec, 2003 It gets better....She pulls out the credit reports and the things I previously got deleted like a couple of medical collections, they are now back on the report showing by trans union, I was shocked, they are one of the first ones I got deleted. And also on there is a credit card that isnt even ours, showing a profit and loss of over $300, ???, again reporting by TU. And then she says our ratio's are great but we have low scores because we dont have enough tradelines. She says we need to apply for credit in the near future so the scores will rise...WTF? the mid score is 560. We only $4000 to put towards closing. No downpayment, thats the 100% financing. She says another alternative is to come up with 20% down, ( yeah, sure right away) Honestly, I dont know how mid-income people do it, 20% down is hard with a family. Obviously we cant get $10,000 up by Dec. so now the dream of buying a house is out. Me and My family are so heartbroken and I am sick over this. I dont know if there is anything else I can do, do you? I cant believe all the energy and time we put into looking for a home to call ours, then our spirits crushed at the end. Thanks for any ideas and advice.
How recent is the bad stuff? If you're basically clean for the last two years, you could probably do a FHA loan - it, or one like it isn't score driven... I think... Would the seller be willing to finance it for you for a year or two - if you end up having to wait that long to get financing? Best wishes...
Sorry for the double response... First of all, it sounds to me like your broker isn't working hard enough for you, and is also out of her mind if she thinks applying for MORE credit is going to help you in the short term. Over time, yes, get some tradelines, use them occaisionally, build some age. But now - you hit the nail on the head - WTF?? IMHO seeing a whole bunch of recent inquiries would raise a huge red flag to the underwriter. If the program she's trying to sell you won't let the seller contribute to closing costs, tell her to find another program. If she can't/won't, find another broker. That's ridiculous. There is a HUGE subprime lending market out there with lots of offerings, find someone who will help you find the best one for YOU. For all you know, your broker is getting an extra kick back from that particular program which is keeping her from offering you a better product. You might also want to explore FHA loans, which are not score driven as I understand it. YOUR DREAM IS NOT OUT OF REACH! It sounds to me like you are being jerked around from a broker who should be your advocate. Tell her to get you the terms you want - in writing - or you'll find someone else who will. Remember, she only gets paid if you sign on the dotted line - make her WORK for it! She should know how to do a rapid rescore for you - give her the proof that you had those items deleted and tell her to submit them to a company that gets your score adjusted in 48-72 hours. Then she can repull the score for you. It is not a service that is available to the general public - only to mortgage companies. I hope some of the mortgage gurus here have some better advice for you - don't give up hope yet. Fight! Fight! Fight! Poochie
OK open solicitation here.........give me a call ....I dont care where you are from...i may not be abkle to do your loan...and as far as i am concerned dont tell me where yer from int he phoen call.....just lemme go over this with you instead of the 12 posts i know this will need and then you can come back here and tewll everyone if I solicitated your loan or if I am a schmuck. Don;t give up though, a few ideas back and forth and then maybe we can come up with a solution..the cost? You have to come back here and type the 10 paragraphs of stuff we talk about and let the other people that come behind see what they need to do.
Thanks Poochie, I agree with you completely about this mortgage broker, speaking of sub prime she never even tryed it because she said that they have ridiculous interest rates. She said the rate now is 6.75% and if she would try subprime it would be over 10%. Thats all she said about subprime and basically wrote that off. She talks to me about the mortgage process like I should know what she's talking about and I literally said to her, I'm sorry this is the first time I ever went for a mortgage and You need to explain things to me like a 2 year old because I dont understand. She just laughed and ignored that comment. I agree she isnt working hard enough for us. What gets me is we gave the realtor $2000 deposit with the offer and I have to either get a mortgage or get that money back and I am hesitant to call the realtor because I am hoping to be able to get a mortgage somewhere else and get this house. I am gone to email willtygart and see if there is something I am missing or something that could be done to help. Thanks for your help. I am also wondering if there is any thing I could do about the things that popped up on the cr from trans union, the medical that I had deleted and a bogus Capital one that isnt ours, what do you think I should or could do about that?
Ok lemme chime in with a few questions for you.. 1. How much is this house your buying/trying to buy. 2. What the Hell are closing costs 10 grand for, Ours were 4 grand with 1 point. 10 grand is even high closing costs paying 3 pts wouldnt put ya there unless your house was 200,000 3. 6.75 % interest my aunts fanny. Bankrate.com says today interest rates on a 30 yr fixed 0 points is 5.87. we got 5.25 only 45 days ago. 4. any company should let the seller pay 1/2 the closing cost, or 1 point. BTW a point is 1% of your mtg. so you borrow say 150,000 1 point costs you 1500 at closing. 5. any back taxes on the property owed? Answer these and i may be able to help you.. !!!!
Good questions, actually. I thought that $10K was high as well, but I don't know what area of the country this is in. But I bet there are several points (shouldn't be at that rate) plus a lot of padded charges. The other thing that's happened to me before is that they ask for a certain amount at closing, then several weeks later you get a check because some of the items were less than they estimated. Never more than several hundred dollars, though. I think that's a racket as well--they get interest on that several hundred for 30 years, but you feel good because you got money back now.
we were overcharged by the title company.. by only like 150 bucks.. we got a check back the next week.. i still say thats way way high
Re: Re: Heartbroken I would love to see if there may be help or if I am getting buffaloed with this woman. Some answers for you... 1. the house is $119,000, in south jersey area. Now this price includes the $4,000 towards closing from the seller, I am financing $119,000 the seller walks away with $115,000 after closing minus of course the realtor fee. (6% in jersey) 2. I know nothing about points, except what you explained to me. The mortgage woman never said anything about points or what they are for or what they mean. She is saying that the closing is $10,200 for a $1500 collection that is gone to be taken care of this month with a settlement (got full validation from creditor) and the bogus credit info showing up on report which total $150. the rest is closing fees. 3. She said the mortgage she was getting for us is a level 1 ,..100% financing convential loan. I asked her to explain that and she said basically with the low credit scores its a high risk loan. 4. I need to get educated more about mortgage points. I heard of them but really no nothing about them. 5. if you mean did the title company do a search and showed that the property had back taxes owed? well I didnt get that far, But it was a house for sale with a realtor and the people that owned it moved far south only a month or so ago. I was stopped in my tracks with this mortgage the day I went to the office to pay cash ($275) for an appraisal of the property. What do you make of this? Thanks
Re: Re: Heartbroken Oh I forgot to mention, I called TU today about the bogus things showing up on the report I told you about, she said if you apply for credit and they pull a tri-merge report it isnt as accurate as if they were to pull just one report at a time, and when I asked her about those things that popped up she said no, no they arent on your report they were deleted many months ago. So how in the world did they pop up on the report this mortgage woman pulled yesterday? I am so frustrated. I dont know if I can do anything legally anywhere in this situation, do you? thanks
Re: Re: Heartbroken any chance u can get a good faith estimate and write out the fee breakdown??? im stilll way confused becaue.. less the 1500 collection tacked on $8500 is still way way way high for closing...especially for no points. A point is basically buying down the interest rate for 1% of the mortgage down. like i explained earlier. Any reputable lender will be more than glad to give you a good faith estimate. get one if u dont have one already, im curious to see these fees. if they cant supply u with a good faih estimate. You should supply them with a thanks but i will go elswhere notice.. its a shady company..
Re: Re: Heartbroken any chance u can get a good faith estimate and write out the fee breakdown??? im stilll way confused becaue.. less the 1500 collection tacked on $8500 is still way way way high for closing...especially for no points. A point is basically buying down the interest rate for 1% of the mortgage down. like i explained earlier. Any reputable lender will be more than glad to give you a good faith estimate. get one if u dont have one already, im curious to see these fees. if they cant supply u with a good faih estimate. You should supply them with a thanks but i will go elswhere notice.. its a shady company..
Re: Re: Heartbroken You know thats a good question I am gone to call this woman tommorrow ( to late now) and ask for the good faith estimate that should of come with this mortgage loan commitment letter that sits in front of me that was prepared in Aug. At the top of the page it says: "It is a pleasure to notify you that your application for a first mortgage loan has been approved subject to the following matters set forth below and on page 2 hereof, Please see the Good Faith estimate of Settlement Charges for any related costs or terms." and in bold Print on the top of the page it says "Mortgage Loan Commitment" and all this time I thought it was a pre approval. (or is it) anyway the "following matters set forth below" are: 1. Satisfactory appraisal 2.30 days current paystubs 3. 2 months current bank statements to support funds to close 4. all collections and/or judgements to be paid in full. 5. final underwriting apprvl- loan is floating As I told you only one collection of $1500 to be taken care of this month. But I have nothing showing me the breakdown of charges anywhere here and I keep good records of things. I am calling tommorrow. thanks and I will let you know the breakdown as soon as I know.
Re: Re: Heartbroken tryinhard, $10K in closing costs, or $8.5K excluding the collection, is too high an amount to pay in closing costs on a $110K mortgage. Whoever that lady is, is ripping you off. For comparison, I paid $5K in closing costs on a $210K mortgage. And I live in NJ too ... North Jersey, though. You say South Jersey ... where do you live? Is there a credit union nearby that you may join? I went to NCUA website, and found a geographically based credit union for anyone who resides/works/worships in Atlantic City, Camden, or Pleasantville. Does this describe you? Become a member of a credit union, and ask them for the mortgage loans. They DO NOT rip you off! If all else fails, email me -- I can refer you to an out-of-state credit union, that ANY ONE can join. No, I do not gain anything by referring you. And they do offer mortgages in NJ. I tried to Email you, but your email preferences is set to OFF.
Re: Re: Heartbroken FYI our good faith estimate breakdown of charges looks like this, now bear in mind this is on a 200,0000 dollar house at 5.25% from a prime lender I would expect yours to be similar but not exact.. the fees are as follows right off the sheet. Processing Fee 550.00 Application Fee 295.00 P.O.C Determine and track flood zone 10.50 Prepaid interest for 10/28-11/01/03) 109.45 Settlement or closing to escrow 200.00 TOTAL PREPAID FINANCE CHARGE: 1164.95 Other Settlement Charges Appraisal Fee 225.00 Credit Report Fee 18.00 Property Insurance 400.00 County Tax Reserve 994.68 Title Insurance Binder to Title 50.00 Document Prep Fee to 3rd Fed 330.00 Title Insurance to Title Company 528.00 Survey Fee 100.00 Special Tax Search 35.00 Recording Fees 137.00 Surveyor Fee 110.00 TOTAL OTHER SETTLEMENT CHARGES 2827.68 TOTAL ESTIMATED CLOSING 3992.63
Re: Re: Heartbroken We got a first time home buyers discount of 100.00, and also bear in mind the 400.00 property insurance fee comes off the total once you buy it seperatly. so i think somewhere your getting robbed. I think others would agree. I feel your frustration, I went thru it not 3 months ago, but ya know now that i did im like the local expert on mortgage lending, It was quite an education. When we first started looking for a house i was like ummm this will never get done itssss tooo complicated
