Getting a mortgage

NEW -> Contingent Buyer Assistance Program
H

hardwareguy_IHB

New member
<p>Dear All</p>

<p>I think time has finally come and i plan to get a house in VOC, the Lantana to be specific</p>

<p>I plan to get the plan 2 which is about $850,000 now and put down 500k</p>

<p>i wanted to get your opinion on getting a mortgage:</p>

<p>here's my situation</p>

<p>1) i have not pre-qualified yet, but i think i will have no problem getting it</p>

<p>2) the reason i did not shop around yet is because i didn't want to get all these lenders to check my credit and ruin my credit score</p>

<p>3) my current FICO is 780</p>

<p>4) Builder's lender ( Lyon ) is offering $15,000 credit if i go with them, but may be there is a catch</p>

<p>5) Are the rates listed on the sites such as Yahoo finance the true rates when i do finally get qualified with them? </p>

<p> </p>

<p>Any feedback is appreciated</p>

<p>thanks alot</p>

<p> </p>
 
<p>I have negotiated with Willam Lyon's lender on several loans on my clients' behalf; they basically topped everyone else's offer; you do have to negotiate though, it's not automatic.</p>

<p>Many folks on this forum such as graphrix and IR can tell you if WL's rate and terms are good or not for you base on the Good Faith Estimate.</p>
 
Why would you even worry about a loan?





With a 500k down cant you walk inside a bank and demand your own rate? You don't even need a Fico score to get approved with your LTV ratio like yours.





given that what I typed was an over exaggeration of the truth. Isn't it true?
 
<p>thanks for your comments</p>

<p>NIR,</p>

<p>Was there any loan fees with WL's loans? </p>

<p>arctichase,</p>

<p>do i need to show how much i make, eventhough i;m putting 60% down?</p>

<p> </p>

<p>thanks</p>

<p> </p>
 
<p>hardwareguy,</p>

<p>My client went for 0 point option, loan fees include appraisal, underwriting fee, processing fee, and title. You will be getting a conforming loan which is cheaper, full doc loan is also cheaper.</p>

<p>I am just curious, what is the source of downpayment? Sounds like it's a move-up purchase.</p>
 
<p>hardwareguy - As an ex-loan officer for a builder the best advice I can give you is get that $15k and get the best rate. With your profile you should be able to get the best out there. So here are my best tips: First a new law went into effect in 2006 that states as long as you are having your credit run shopping for a mortgage in a 14 day period your credit score shouldn't change unless something else changes. I mentioned this to someone else here and they realized it was their balances had changed that moved the score down. Now I am not advocating having all 14 lenders left in OC to run your credit but two or three should suffice. Who do you bank with? They should bend over backwards for your loan and give you a great rate. Then go back to WL and get the same rate and the $15k. Trust me they have the same sources as everyone else and even with that $15k they can work something out that no one can beat. If you really want to have fun with it go to your bank get the best rate and then ask them if they will give you $15k on top of that. </p>

<p>Now for fees it is difficult to compare apples to apples even with a good faith when it comes to a builder and a bank. You need to manually add up the lender fees and skip the escrow and title fees type fees. The builder will have the most accurate non-lender fees whereas the bank will have a generic estimate. If you would like you can email me the good faith and I can show you what you need to compare. </p>

<p>As for what to do with the $15k it depends on how long you plan on living there without refinancing. This is difficult but the longer you do plan on being with that loan the more rate I would buy down. </p>

<p>When is the estimated close of escrow? I recently had a discussion with someone who locked in six months before the close and rates had improved but the lender never did a float down for them. </p>

<p>Oh and the you shouldn't have to provide income documentation and have an extra fee for it either with that LTV.</p>
 
"Oh and the you shouldn't have to provide income documentation and have an extra fee for it either with that LTV."





It's amazing what lots of down payment money and a very high FICO can do
 
<p>hi </p>

<p>thanks for your comments</p>

<p>Graphrix</p>

<p>thanks for your info this will be my first time buying a home so i' m all new to this </p>

<p>as for the rate buy down, what if i tell them at first i was putting down 400k, and then when the loan approves i tell them i will put down 100k more if they will lower the rate, is that how it works? sorry if the question sounds stupid</p>

<p>which 3 lender would u recommend to get qoutes from?</p>

<p>thanks again</p>
 
Since its your 1st time to buy a house I would highly recommend setting aside 100K + for landscaping and furnitures unless you already have a budget for that.





Citi Mortgage seems to have very good rates. But in your situation any lender will be more than happy to approve your loan with rock bottom rates.
 
<p>I always demand a "no pre-payment penalty" clause....<em>in writing</em>. You never know what life will throw at you and if forced to sell, you don't want to have to pay a penalty for ending the loan early.</p>

<p>In reading this blog, why in the world are you going to buy right now? You can conceivably save 100K buy buying next year as opposed to now. Think hard.</p>

<p> </p>
 
<em style="">"</em>...<em>in writing."</em><em>





</em><em>Yes, yes, yes! Whatever deal you strike with whoever makes sure that all those details are found in the written loan docs prior to signing them. Don't fall for a "we can fix it later," or any other verbal assurances. Nearly all, if not all, loan docs will have a clause in them that states that the written contract contains the full agreement and supersedes all earlier discussions, agreements, etc., oral or written. Once you sign that loan, you've bought what's written inside. Read carefully and doublecheck everything. The same is true for the purchase contract and 6 inch stack of documents and disclosures you will receive from Lyon. </em>
 
<p>Re: #5 <em>"Are the rates listed on the sites such as Yahoo finance the true rates when i do finally get qualified with them?"</em></p>

<p>I would recommend modeling your loan options at <a href="http://www.eloan.com">www.eloan.com</a>. I have always found that it gives you a good baseline to compare mortgage rates and fees that might be offered to you by others. In my experience with the last two loans, eloan's estimate of rates and loan terms/features was right on the money. I was able to take that estimate to a mortgage broker and negotiate better terms.</p>
 
<p>With the info you have posted you should be able to get a 30 year fix loan in the 5.875% range. Maybe better with the seller credit towards closing costs. Furthermore, you should not have to provide income or asset verification, the loan officer should submit the loan as full documentation and the Automated underwriting system should return findings that do not require verification of assets and income.</p>

<p>Wachovia, is pushing very hard for market share in SoCal at this time, so I would look into their program. </p>
 
<p>hi</p>

<p>thank you all for your insight..as for Trooper, i know i should wait a little longer, but the wife is getting anxious, we still have the WL flyer from last year and she is saying that prices have already dropped like 100k to 150K so its time to buy..</p>

<p>When do i really have to close escrow before the house is finished? can i back out?</p>

<p> </p>

<p>thanks again</p>
 
<p>Guys,</p>

<p>I found the statistic in this MSN article applicable to folks who wives are less likely to be permabear than hubbies. <a href="http://articles.moneycentral.msn.com/Banking/Advice/WhosBuyingHousesNow.aspx">http://articles.moneycentral.msn.com/Banking/Advice/WhosBuyingHousesNow.aspx</a></p>

<p><strong>Single women make up 22%; single men, just 9%</strong></p>

<p>My husband is an ultra-permabear. He had never agreed to buy any real estate as he sees too much risks involved. He rather invests in stocks and see his money evaporated. And that exactly happened.</p>

<p>As a female, having a home of my own is very important. Yes, I would marry a house before I marry a husband. <strong></strong></p>
 
hardwareguy,





Glad I caught this thread. We are also buying a house in phase 5 of Lantana development. We have been watching this development since day one, and it did started out at around $1mil. Currently at around $340/sq ft, it is the best deal in Irvine. We love the plan, the location, and like to get into a house this year. So we've decided not to wait for further price drop and put down the deposit for end of year completion. We figure this will secure the lot we like (yes there IS a waiting list for plan 2), plus giving us half year to observe the market condition. Although the sales people will tell you WL usually will refund the deposit when you back out, I wouldn't take their word for it over the sign contract. If you search this blog back a few months, they have allegedly made promises to price adjustments after close of escrow to early phase buyers, but we all know that's wishful thinking on buyer's part. So weather you can get the deposit back will all depend on the market condition and their willingness to negotiate.





By the way, I am sure you are aware the lot location in Lantana is critical due to the industrial area nearby. Try to talk to a few residents in the neighberhood to get some feedback.





Thanks to all the comments in this thread. It's been very useful for me.
 
I am not sure that I have read any posts in here by anyone who could be accurately described as a pemabear on the re market. It seems to me they would be more accurately described as thoughtful, patient, and waiting for a better time to purchase.
 
If you can afford at least 50% down payment, I doubt it'd be difficult to get the loan. I don't know how much you make, but if you have $500k cash then I doubt you're poor. If you can afford it, you might want to consider 15-year fixed rate loan over 30-years, so you can have the house paid off while you're still young and making big $$.
 
<p>awgee,</p>

<p>Your point is very well taken. IMHO, most folks on this forum are future home buyers who are trying to time the market for fear of loosing money.</p>

<p>Another reason could be you are trying to find a reason not to commit into home buying because you are commitment-phobic Most of you are probably male.</p>

<p>You can always find reasons to buy, or reasons not to buy, all day long, your choice. My famous quote.</p>

<p>I look back into my 25 years of home buying experience of trying to time the market, my hit rate was close to 0%, always was wrong. The opposite seemed to prevail each time. So I stopped even try to predict the market.</p>

<p> </p>
 
<p>nirvinerealtor - Obviously I cannot speak for everyone, but I am trying to time the market, but not for fear of losing money. And I do not sense fear from the other posters who are waiting. I sense patience, intelligence, foresight, and a willingness to look at the facts.</p>

<p>My wife and I are not commitment phobic, nor do I sense that from anyone else in here either. Before we started renting a little less than two years ago, we owned a series a three homes, and are looking forward to owning again when we deem the time right for us. I am male, and my wife is female, and we make big decisions jointly. It was my idea to sell and rent, but she is on board, supportive, and enthusiastic about our present living situation.</p>

<p>I guess one can find reasons, but some reasons are based more in fact than others. And one can choose to face facts or live in fantasy.</p>

<p>Sorry to hear you have not had success timing the market. Many don't and many are more content to folllow the herd. If I was not successful at timing certain markets, we would be broke, as I make 30% of my income as a short seller. Timing a market is not about predicting. Market timing is successful by knowing pertainent facts, discerning falsehood, myths, and common misconceptions, waiting for the odds to be with you instead of against you, and following the trend. No one can predict the future, but thankfully, predicting the future is not necessary to time a market or an asset class movement.</p>

<p>No one can actually predict what the real estate market will do tomorrow, but one can open one's eyes to the various factors which influence supply and demand and even someone of my limited intelligence can spot a trend as long as they do not have a vested interest in denying that trend.</p>
 
You must log in or register to reply here.
Back
Top