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February 19, 2015 at 12:02 PM in reply to: Best Option for Getting a Loan – And Purchasing Without an Agent #783177February 19, 2015 at 9:39 AM in reply to: Best Option for Getting a Loan – And Purchasing Without an Agent #783173
HLS
Participant[quote=spdrun]Yet FSBO deals happen all the time, even with first-time buyers. Nothing wrong with buying as is — better to negotiate the price than to have the seller do some halfass repairs.[/quote]
That’s your opinion, it’s not a fact.
VERY few first time buyers represent themselves.No buyer has to accept ‘halfass repairs’
As is can be a problem in getting a loan.For most buyers it is not better to negotiate the price. They don’t have the funds needed to complete the repairs and most buyers aren’t know it all do it yourselfers like many on this site who wouldn’t dream of paying a professional to do anything because they know how to do it for less.
February 19, 2015 at 9:13 AM in reply to: Best Option for Getting a Loan – And Purchasing Without an Agent #783171ParticipantThere is nothing wrong with 2 parties agreeing to complete a transaction on their own but don’t expect an escrow officer to guide you through the transaction, that’s not their job and they’re foolish if they offer advice.
The real risk is by the seller, not having anyone to bear some responsibility if something goes wrong.
As long as any seller gets their money, they will
never sue the buyer.
It’s the buyer that can sue a seller for any number of reasons after a transaction closes.Just because a buyer has lived in a property doesn’t mean that they have to accept a property as is.
There are disclosures that are required even if a seller has not lived in a property.Any Agent/Realtor/Broker has some liability in every transaction that they are involved in, which is why it isn’t prudent for one to say they will
help complete a transaction like this for a few hundred dollars.The OP admitted he knows nothing about the process and the ‘experts’ here are telling him it’s no big deal to do it on your own.
Really bad advice.February 18, 2015 at 9:06 PM in reply to: Best Option for Getting a Loan – And Purchasing Without an Agent #783163ParticipantI don’t care how long anybody has lived in a house,
it’s irresponsible to tell someone that they shouldn’t get an inspection ‘because they already know everything about the house’Get a 30yr mortgage and obligate yourself to hundreds of thousands of dollars in payments, but don’t spend $400 because you live there ?
Is OP a licensed contractor, electrician, plumber, roofer etc. Qualified to know what’s
wrong with the house ?I wouldn’t assume that the landlord is being fair.
Accepting things the way they are for the sake of convenience could turn out to be a VERY costly mistake.ParticipantIncome is figured before retirement contributions.
W2 salary is prior to deductions.
Schedule C is similar.
Generally if you own more than 25% of a corporation, the K1’s & 1120S are required to be submitted as well as 1040’sMost approvals are automated. Very rare to have manual underwriting now. Maybe some exceptions.
I don’t think that many institutions hold many loans for 30yrs these days, 10yrs or less perhaps.
HELOC’s do not have the same risk exposure; usually tied to the prime rate.Participant[quote=poorgradstudent]
It’s kind of scary how easy it is to manipulate the numbers if you plan ahead.
It’s a messy system that can be manipulated, but brokers legally aren’t supposed to coach you through how to pull some of the levers.[/quote]
It IS easy to manipulate some things but not income. Tax returns, pay stubs & W2’s are usually
required except for some programs.Do you have a source for stating the legality of a broker coaching you OR did you make that up ?
Participant[quote=jeff30]
Are banks willing to run both scenarios for comparison? I.e. add spouse onto loan (higher income, lower credit score) versus not?[/quote]I don’t know what ‘banks’ do. I don’t work for a bank. I work for a borrower and do this to figure out what is best for the borrower.
Banks have divisions that are mortgage brokers.
They generally have the exact same automated approvals but may not have the best price OR service.
There is a huge misconception about what ‘banks’ do.Participant[quote=Clifford]HLS,
How hard would it be for someone who has the following credit profile to get a mortgage (conventional, not jumbo):
– Had a mortgage 10 years ago (currently has no mortgage)
– FICO score ~700
– Has only 2 credit cards
– Has no debt
– %50 down payment[/quote]Relatively easy as long as you qualify based on income.
You would not want FHA.
Do you qualify for a VA ?
For conventional there are 2 loan limits ($417K & $546K in San Diego County) and 5 down payment tiers for a purchase. (3% 5% 20% 25% and 40%)
There are pricing hits based on credit score bucket AND down payment. It’s a cut & dried matrix table, no exceptions, no excuses, no explanations.They always use the middle credit score of the 3 bureaus, the highest & lowest are ignored.
If 2 people are needed to qualify, the use the lowest borrower’s middle score.In many cases this presents a problem, but if a borrower’s income is not needed to qualify I suggest considering only 1 person on the loan, spouse can still be on title which is the ownership part.
Let’s say there are 50 conditions that have to be signed off before a loan is approved.
Nothing gets overlooked because of a higher credit score OR larger down payment.
All 50 conditions need to be signed off.Having a larger down payment on a purchase (OR more equity on a refi) doesn’t make it any easier to qualify for a loan, other than the fact that your payment is lower.
They DO NOT say “there is 50% equity, we won’t lose money, let’s just fund the loan”
they are not looking to foreclose and there are many obstacles to doing so.Credit scores generally need to be at least 620 but you will have a higher rate OR cash price to pay to get what someone with a 740+ score will get.
Most people don’t grasp that there is not one rate that fits everybody. In most cases a mid score above 740 gets you the best pricing. It doesn’t make it any easier if your score is 800 or 840.
feel free to contact me privately if you have specific questions.
Approvals don’t care about how much debt you have, they only look at minimum monthly payments on a credit report.
Many people are not aware that they can raise their credit scores relatively easily & quickly.
It seems like your score should be much higher than 700~ but it depends on your history.Just because someone has 50% down, zero debt, an 800 credit score and $1 million dollars in the bank, it doesn’t mean that they can qualify for a conventional loan.
In many cases it’s easier for someone with 3% down, other debt, no cash other than down payment and a much lower credit score to qualify.
………It’s simply idiotic.ParticipantGZZ,
Perhaps you’re right.
However,you have NO CLUE what suggestions I have for the OP, or the type of advice that I offer and I actually don’t have any until I know a lot more details.
I have no interest in putting anybody into a loan that they don’t need. The OP has a goal that they want to accomplish.BTW, This IS just ‘any website’
People can say whatever they want without any accountability.
Comments on any website are mostly opinions.
Many times it’s totally false information presented as factual.I’ve been on this site for 7 and half years.
I’m glad that you have learned a lot but you don’t know anything about me.The loophole has nothing to do with getting around loan guidelines, it’s just something that would just benefit the OP.
ParticipantPS:
there’s no charge or obligation.ParticipantTL,
I suggest that you contact me privately if you wish to discuss your situation, rather than airing more of your laundry here. I can make some suggestions for part of it. One PROFESSIONAL person cannot cover it all, (but there are contributors on this website who will offer advice on all of it, with conviction)I’ve helped MANY people from this site with loans, info OR where to get it even when I didn’t get their loan.
I’m sure somebody has something to complain about, I’m not perfect. 😉I don’t have all the answers like some people seem to have.
Getting advice on any website about what someone would do based on their limited experience is simply dangerous.Loan guidelines are INSANE. Sometimes there are exceptions.
Adding someone to title can create a HUGE re-assessment for property taxes.
Property does NOT always have to be taken out of a trust to refinance.
I don’t recommend that anyone other than a professional prepares & records their own deeds.
(It’s not something that I would do)I don’t offer serious plumbing, electrical, engineering, IT, auto or mechanical advice, but I can explain many financial benefits upside down and sideways and am happy to do it if asked.
Many people are wasting thousands of dollars because they know better.Your situation sounds a bit tricky but mom may be in better shape than you think to accomplish what
you want to do.
There may also be a loophole that would work perfectly for you, I need to investigate for you if you’d like.February 2, 2015 at 11:15 AM in reply to: using equity from small properties for downpayment #782541Participant[quote=TexasLine]Wow. I guess this is more complicated than I thought.
My mother would not be able to qualify. She is handicapped and has no job. She would, in theory, move in with us and we would use her properties to leverage as down payment for the house we would all live in…so I guess she would need to take out equity and give that money to me which I would then use as a down payment? I think there are severe tax penalties for doing this, which I of course would want to avoid.
But to simplify, I still am not sure of the basic principle of whether or not one should take out equity or simply sell the property for a down payment.
Do all brokers posses the knowledge to deal with this kind of issue?[/quote]
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What complicates it is getting advice from people who don’t know what they are talking about.severe tax penalties ?
Ask your tax advisor if there are penalties for refinancing and taking cash out.Does she report rental income on tax returns?
Does she have any SSI/Disabilty/Pension income ?
She may be able to qualify for more than you think. She doesn’t have to have a job.She just needs ‘qualifying’ income.Brokers should ‘possess’ the knowledge, but sadly they don’t..and there’s some really bad advice on this website from people based on their (limited)experience that can confuse you too.
Mom MAY be able to borrow up to 70% of the current value of the properties, I doubt any more than that, IF she can qualify.
ParticipantMost people are bullish & foolish.
The key is to protect your downside risk which is
easily & readily available.It’s buying insurance to limit losses.
It’s what professionals do and amateurs don’t.You can have unlimited upside and limited downside.
February 2, 2015 at 10:55 AM in reply to: using equity from small properties for downpayment #782539Participant[quote=FlyerInHi]Putting taxes issues aside, there’s technically nothing that prevents the trustee of the trust from transferring the property to the son. The son then gets a mortgage and can transfer the property back to the trust.
It’s not done at the same time, for lien priority purposes, the deed of trust has to be recorded before the transfer back to the trust. Within minutes perhaps, but there’s an order.[/quote]
I’m just curious, are you a real estate attorney or licensed mortgage broker ?
January 31, 2015 at 11:32 PM in reply to: using equity from small properties for downpayment #782494Participant[quote=FlyerInHi]I was just thinking that the trust situation is complex.
The houses would first have to get transferred out of the trust to the individual borrower, otherwise, he/she cannot borrowed on them.[/quote]
NONSENSE, that’s not true!
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