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Post by Maureen on Feb 20, 2012 12:48:32 GMT -5
I know with the earnest thing in Houston we would have just needed to give $500 for them to build us a nice house and then it goes towards everything if we decide to keep it orforfeit it if we end up not getting it once its all built and stuff. Not sure if its the same anywhere else.
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Post by mermaid on Feb 20, 2012 13:00:35 GMT -5
Yes, do earnest money. Typically $500-1000. Points, don't bother with them. Rates are very low. After you've owned your home for a year you can do the VA Streamline loan; which is what we're in the middle of doing right now.
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Post by doublewideblues on Feb 20, 2012 13:10:17 GMT -5
sorry, yes, seller (not buyer) in regards to the credits.
Earnest money is dependent on the properties. Common in short sales but less common in traditional sales considering the turn around time etc. We've only made it as far as one offer thus far and their counter requested we put down $3000 in acceptance of our counter. We never made it any further as they accepted a different counter.
I don't see an issue with earnest, if you're serious enough to make the offer, seems to make sense to be serious enough to put down the earnest.
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Post by Deb on Feb 20, 2012 13:33:19 GMT -5
Earnest money = small down payment to go to contract on a sale.
Points = a percentage of loan amount to get a better interest rate. Example 1 point = 1% of loan amount requested.
On conventional/FHA mortgages, closing costs vary depending on what documents the lender requests to close the mortgage and the amount of the mortgage vs. the sales price of the home. If you're buying a home for $200K, but are only getting a $175K mortgage, you need to come up with $25K plus at closing. Also, depending on the day of the month you close, you'll pay interest on the mortgage amount from the day of closing until the first payment is due. Most mortgage companies like their payments due the 1st of the month, so, if you close on the 5th, you'll pay for 25-26 days of interest on your mortgage at closing.
I just did a refinance of my mortgage to go from 6 3/8% to 3 3/4%. I paid no closing costs because I was doing a straight refinance for the balance of the loan and not getting any equity (cash) out of the house. Bank told me if I decided to do a home equity loan after the refi, the closing costs would be $500, mostly document fees.
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Post by mermaid on Feb 20, 2012 13:45:21 GMT -5
If you don't put down earnest money, they will likely look past your offer if they are getting other offers.
Deb, didn't you have closing costs in the way of taxes, new title policy, etc? I'm not paying any bank fees, but I have to pay taxes, title policy, and a flood check fee. And the escrow, but that will get refunding after closing.
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Post by Deb on Feb 20, 2012 13:58:48 GMT -5
Nope, Wells Fargo, who held the original mortgage, credited me for the title policy, credit reports, revenue stamps, etc.
Everything was done through the mail and on the phone.
My loan closes on the 29th of this month, and my 1st payment on the new loan is April 1st, so I had to pay $400 or so in interest from March 1st to March 31st.
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Post by skooch on Feb 20, 2012 14:04:08 GMT -5
Whatever you put down in earnest money comes off the home price or closing costs.
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Post by Maureen on Feb 20, 2012 16:09:42 GMT -5
Gotcha. So I need to have closing costs (in case sellr doesn't pay them) and earnest money.
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Post by Deb on Feb 20, 2012 17:18:11 GMT -5
Earnest money is a nominal amount - usually $500 upon signing the contract to purchase.
Are you going for 100% financing or are you going to put some money down? You'll need that money at closing and it will need to be in the form of a bank /certified check. I think there are some fees you'll need to pay unless you're going to roll them into the mortgage (I advise against that, no sense paying interest for nominal amounts for 30 yrs). Plan on roughly $3K for closing costs, other than any down payment.
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Post by Maureen on Feb 20, 2012 18:08:26 GMT -5
We're thinking of doing 100%.
*If* we decide to do this we are looking at a builder in the Richlands that a friend of ours is going through. Mike talked to them today and they said they asked the builder to pay closing costs and they agreed.
We're still in the "holy shit is this really something we are ready to do" stage and gathering information. No real decisions have been made. Except of course my list of demands like "I want s big kitchen" etc. lol
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Post by skooch on Feb 20, 2012 18:52:16 GMT -5
Builders will usually pay closing costs if you ask. I mean they make crazy profits off each house, a couple grand is easy for them.
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Post by Deb on Feb 20, 2012 19:12:42 GMT -5
Don't go too crazy with upgrades if you are doing new construction.
You'll get banged over the head for stainless appliances, etc.
One recommendation, if the home will have carpet, buy or request the best padding available. It will make even cheap carpeting last a long time.
If you want ceramic tile on any of the floors, go neutral. Same thing with countertops. You may LOVE purple (I almost got them in my first new construction home), but, if you aren't going to stay in the home until it's time to update, you'll have a tough time selling.
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Post by gardenwitch on Feb 20, 2012 20:39:53 GMT -5
Is it better if we have an address to start the pre-approval process or will it be ok if we are in transition? As in staying in a hotel (or our camper, haha!)
I'm just not sure WHEN to start this whole process, how long does pre-approval take? Can we talk to several lenders to see which gives us a better rate (like when you buy a car, as long as it's all done in one month it only counts as one hit on your credit??)
So many questions.............and Maureen is right, buying our land was easy, this is a LOT more complicated!
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Post by Deb on Feb 20, 2012 20:54:12 GMT -5
You can do most of your rate checks online.
None of the banks will do a credit report until you decide you are going to go with them. I don't know about out west, but right now, Wells Fargo has the best deal locally, compared to BB&T and First Citizens (I don't have access to Navy Fed, Marine Fed or USAA).
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Post by gardenwitch on Feb 20, 2012 21:04:41 GMT -5
Navy Fed lowballs what they would qualify you for from what I have been told. It wouldn't hurt us as we are looking for less home then we'd likely qualify for anyway (based on his income)
I'm thinking of using the USAA movers advantage program, it looks like it would be very helpful to us as first timers. Marine Fed only finances home loans for homes in NC, SC and Virginia, so it's out for us.
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