am i about to get screwed?

[scaredyclassic]

you’re right that was sloppy. we actually offered list price plus a bit more, seller pays $12,000 (our estimate of closing costs).

I guess that’s my issue; am I necessarily going to get a “p.o.s.” loan by going with this guy, or is it likely to be close enough to what i’d get anywhere that it’s worth using him to get the full amount of loan fees applied toward closing costs?

Don’t worry about coming down hard on me; it is actually physically impossible to insult me (hide impervious to any type of abuse).

[SD Realtor]

Well at least you defined the price which was 12,000. This is good. Add an addendum to say that the closing costs are both recurring and non recurring . Also know that if you do not use all of the 12k up, that you the buyer do NOT get the difference, the lender will not allow that. So make sure you eat that money up IN ESCROW even if it means getting some upgrades done to the home.

Now you may or may not get a p.o.s loan but YOU have the power to prevent that. It just takes legwork. Also remember, dont focus on just the rate. If you are gonna get an apples to apples comparison you need to include rate and cost of financing.

[SD Realtor]

Well at least you defined the price which was 12,000. This is good. Add an addendum to say that the closing costs are both recurring and non recurring . Also know that if you do not use all of the 12k up, that you the buyer do NOT get the difference, the lender will not allow that. So make sure you eat that money up IN ESCROW even if it means getting some upgrades done to the home.

Now you may or may not get a p.o.s loan but YOU have the power to prevent that. It just takes legwork. Also remember, dont focus on just the rate. If you are gonna get an apples to apples comparison you need to include rate and cost of financing.

[SD Realtor]

Well at least you defined the price which was 12,000. This is good. Add an addendum to say that the closing costs are both recurring and non recurring . Also know that if you do not use all of the 12k up, that you the buyer do NOT get the difference, the lender will not allow that. So make sure you eat that money up IN ESCROW even if it means getting some upgrades done to the home.

Now you may or may not get a p.o.s loan but YOU have the power to prevent that. It just takes legwork. Also remember, dont focus on just the rate. If you are gonna get an apples to apples comparison you need to include rate and cost of financing.

[SD Realtor]

Well at least you defined the price which was 12,000. This is good. Add an addendum to say that the closing costs are both recurring and non recurring . Also know that if you do not use all of the 12k up, that you the buyer do NOT get the difference, the lender will not allow that. So make sure you eat that money up IN ESCROW even if it means getting some upgrades done to the home.

Now you may or may not get a p.o.s loan but YOU have the power to prevent that. It just takes legwork. Also remember, dont focus on just the rate. If you are gonna get an apples to apples comparison you need to include rate and cost of financing.

[SD Realtor]

Well at least you defined the price which was 12,000. This is good. Add an addendum to say that the closing costs are both recurring and non recurring . Also know that if you do not use all of the 12k up, that you the buyer do NOT get the difference, the lender will not allow that. So make sure you eat that money up IN ESCROW even if it means getting some upgrades done to the home.

Now you may or may not get a p.o.s loan but YOU have the power to prevent that. It just takes legwork. Also remember, dont focus on just the rate. If you are gonna get an apples to apples comparison you need to include rate and cost of financing.

[UCGal]

I don’t have warm fuzzies about being locked into some broker who may or may not give you a good deal.

Why not drop the seller-pays-closing bit and lower your price accordingly. If the negotiated closing costs were $12k, show you’re acting in good faith and counter with $10k under your previous bid, but you’re responsible for closing costs. True you’ll have to pony up some cash at closing – but not that much… I have coworkers refinancing for no-cost, no points… brokers are even covering appraisals these days. It’s a buyers market out there for mortgages… brokers are jumping through hoops for the business from what I’m observing with my coworkers.

Other buyers costs include inspections. Obviously YOU want to pick your inspector… no relatives of the sellers.

If I recall correctly from past posts – you have a decent cash position – but don’t want to sink it all in a house. But it would be foolish to finance into a more expensive loan because you were too afraid to pay closing costs.

BTW – welcome back!

[UCGal]

I don’t have warm fuzzies about being locked into some broker who may or may not give you a good deal.

Why not drop the seller-pays-closing bit and lower your price accordingly. If the negotiated closing costs were $12k, show you’re acting in good faith and counter with $10k under your previous bid, but you’re responsible for closing costs. True you’ll have to pony up some cash at closing – but not that much… I have coworkers refinancing for no-cost, no points… brokers are even covering appraisals these days. It’s a buyers market out there for mortgages… brokers are jumping through hoops for the business from what I’m observing with my coworkers.

Other buyers costs include inspections. Obviously YOU want to pick your inspector… no relatives of the sellers.

If I recall correctly from past posts – you have a decent cash position – but don’t want to sink it all in a house. But it would be foolish to finance into a more expensive loan because you were too afraid to pay closing costs.

BTW – welcome back!

[UCGal]

I don’t have warm fuzzies about being locked into some broker who may or may not give you a good deal.

Why not drop the seller-pays-closing bit and lower your price accordingly. If the negotiated closing costs were $12k, show you’re acting in good faith and counter with $10k under your previous bid, but you’re responsible for closing costs. True you’ll have to pony up some cash at closing – but not that much… I have coworkers refinancing for no-cost, no points… brokers are even covering appraisals these days. It’s a buyers market out there for mortgages… brokers are jumping through hoops for the business from what I’m observing with my coworkers.

Other buyers costs include inspections. Obviously YOU want to pick your inspector… no relatives of the sellers.

If I recall correctly from past posts – you have a decent cash position – but don’t want to sink it all in a house. But it would be foolish to finance into a more expensive loan because you were too afraid to pay closing costs.

BTW – welcome back!

[UCGal]

I don’t have warm fuzzies about being locked into some broker who may or may not give you a good deal.

Why not drop the seller-pays-closing bit and lower your price accordingly. If the negotiated closing costs were $12k, show you’re acting in good faith and counter with $10k under your previous bid, but you’re responsible for closing costs. True you’ll have to pony up some cash at closing – but not that much… I have coworkers refinancing for no-cost, no points… brokers are even covering appraisals these days. It’s a buyers market out there for mortgages… brokers are jumping through hoops for the business from what I’m observing with my coworkers.

Other buyers costs include inspections. Obviously YOU want to pick your inspector… no relatives of the sellers.

If I recall correctly from past posts – you have a decent cash position – but don’t want to sink it all in a house. But it would be foolish to finance into a more expensive loan because you were too afraid to pay closing costs.

BTW – welcome back!

[UCGal]

I don’t have warm fuzzies about being locked into some broker who may or may not give you a good deal.

Why not drop the seller-pays-closing bit and lower your price accordingly. If the negotiated closing costs were $12k, show you’re acting in good faith and counter with $10k under your previous bid, but you’re responsible for closing costs. True you’ll have to pony up some cash at closing – but not that much… I have coworkers refinancing for no-cost, no points… brokers are even covering appraisals these days. It’s a buyers market out there for mortgages… brokers are jumping through hoops for the business from what I’m observing with my coworkers.

Other buyers costs include inspections. Obviously YOU want to pick your inspector… no relatives of the sellers.

If I recall correctly from past posts – you have a decent cash position – but don’t want to sink it all in a house. But it would be foolish to finance into a more expensive loan because you were too afraid to pay closing costs.

BTW – welcome back!

[scaredyclassic]

because frankly I am stuck in my own head about only bringing X to the deal and paying no more than that out of pocket.

I mean, if he’s a mortgage broker, he has a fiduciary duty to get me the best loan, right ? 😉
But seriously, folks….obviously he wants to maximize the fee to pay as much of the closing costs as possible, but will that necessarily jack up the cost of the loan for me? i honestly don’t know if his incentives are generally aligned with my goals, or if they are misaligned, how out of whack they are……so I’m asking…

by the way, I like all this negative press housing is getting. I don’t think we’re at the bottom, but at least we’re getting there…also, most people I talk to tell me NOT to buy a house. The exact opposite of 5 years ago when everyone told me I was a moron for renting. Inspires a little confidence in me…

[scaredyclassic]

because frankly I am stuck in my own head about only bringing X to the deal and paying no more than that out of pocket.

I mean, if he’s a mortgage broker, he has a fiduciary duty to get me the best loan, right ? 😉
But seriously, folks….obviously he wants to maximize the fee to pay as much of the closing costs as possible, but will that necessarily jack up the cost of the loan for me? i honestly don’t know if his incentives are generally aligned with my goals, or if they are misaligned, how out of whack they are……so I’m asking…

by the way, I like all this negative press housing is getting. I don’t think we’re at the bottom, but at least we’re getting there…also, most people I talk to tell me NOT to buy a house. The exact opposite of 5 years ago when everyone told me I was a moron for renting. Inspires a little confidence in me…

[scaredyclassic]

because frankly I am stuck in my own head about only bringing X to the deal and paying no more than that out of pocket.

I mean, if he’s a mortgage broker, he has a fiduciary duty to get me the best loan, right ? 😉
But seriously, folks….obviously he wants to maximize the fee to pay as much of the closing costs as possible, but will that necessarily jack up the cost of the loan for me? i honestly don’t know if his incentives are generally aligned with my goals, or if they are misaligned, how out of whack they are……so I’m asking…

by the way, I like all this negative press housing is getting. I don’t think we’re at the bottom, but at least we’re getting there…also, most people I talk to tell me NOT to buy a house. The exact opposite of 5 years ago when everyone told me I was a moron for renting. Inspires a little confidence in me…

[scaredyclassic]

because frankly I am stuck in my own head about only bringing X to the deal and paying no more than that out of pocket.

I mean, if he’s a mortgage broker, he has a fiduciary duty to get me the best loan, right ? 😉
But seriously, folks….obviously he wants to maximize the fee to pay as much of the closing costs as possible, but will that necessarily jack up the cost of the loan for me? i honestly don’t know if his incentives are generally aligned with my goals, or if they are misaligned, how out of whack they are……so I’m asking…

by the way, I like all this negative press housing is getting. I don’t think we’re at the bottom, but at least we’re getting there…also, most people I talk to tell me NOT to buy a house. The exact opposite of 5 years ago when everyone told me I was a moron for renting. Inspires a little confidence in me…

[Author]

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