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Old 11-09-2008, 07:49 PM
 
94 posts, read 216,738 times
Reputation: 87

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I was hoping the realtors on board could tell me what is available for mortgage loans?

I have heard interest rates are going down, but are there many financial establisments giving loans? What about jumbo loans are they available anymore and if so at what kind of interest rate? Are they still set at 400?

I believe our creidit score is probably decent. Income is good, and we will have more then 20% to put down. We are relocating quickly, before the end of the year. We have been researching schools, neighborhoods, and the crime index. We have used this search engine and comuted distances from desired neighborhoods to DH's work. With our corporate relo we will get some help in purchasing with some of the fees, etc. But with the economy the way it is we are not even sure if it is feasible to think we will be able to get a loan at this time. With that said are there many homes that are leasing with the option to buy? We are thinking that may be a better option considering the economy.

I appreciate any insight to any of my questions
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Old 11-09-2008, 08:04 PM
 
102 posts, read 285,949 times
Reputation: 23
There are some banks out there giving loans still. Sure there has been a credit freeze, but in your case

You have 20% or more down meaning there will be much less restrictions when it comes to guidelines such as DTI, credit etc...Restrictions are mostly concerned with MI companies and with the high foreclosure situation MI companies such as radian, GE etc are LOSING money hand over fist.

As long as income is solid and not a major career change(some underwriters will question that), you have reserves in the bank as well?, Jumbo loan limits are higher now(cant remember exactly what they are anymore)

Either way not knowing your mid score(credit score) as long as it is above 700 you should be fine. When you get below that you start getting rate add-ons and hit higher risk thresholds.

Good luck.
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Old 11-09-2008, 08:27 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,323,408 times
Reputation: 1008
It will vary with your credit score, down payment, and loan amount.

417k is the amount you need to get to have a conforming loan amount.

There are still a lot of financial institutions given loans.
If you were to get a jumbo loan, then an ARM might be your best option.
The rates are usually a huge difference.

Quote:
Originally Posted by Bramca View Post
I was hoping the realtors on board could tell me what is available for mortgage loans?

I have heard interest rates are going down, but are there many financial establisments giving loans? What about jumbo loans are they available anymore and if so at what kind of interest rate? Are they still set at 400?

I believe our creidit score is probably decent. Income is good, and we will have more then 20% to put down. We are relocating quickly, before the end of the year. We have been researching schools, neighborhoods, and the crime index. We have used this search engine and comuted distances from desired neighborhoods to DH's work. With our corporate relo we will get some help in purchasing with some of the fees, etc. But with the economy the way it is we are not even sure if it is feasible to think we will be able to get a loan at this time. With that said are there many homes that are leasing with the option to buy? We are thinking that may be a better option considering the economy.

I appreciate any insight to any of my questions
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Old 11-10-2008, 04:00 AM
 
7,107 posts, read 9,707,399 times
Reputation: 2564
Further to OP question..I would think in this market OP will need all the help she can get in finding the loan. So, is it best to go to banks or use a broker?
How much extra will the loan thru the broker cost?

Disclaimer:I am not looking for a loan but am interested because of th current market conditions. Hold the advertising plugs and please give real numbers.
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Old 11-10-2008, 04:35 AM
 
Location: Charlotte, NC
7,041 posts, read 13,111,325 times
Reputation: 2323
Default No brokers

Quote:
Originally Posted by johne482 View Post
Further to OP question..I would think in this market OP will need all the help she can get in finding the loan. So, is it best to go to banks or use a broker?
How much extra will the loan thru the broker cost?

Disclaimer:I am not looking for a loan but am interested because of th current market conditions. Hold the advertising plugs and please give real numbers.
I think that the OP should go to a major bank such as BOA or Wells Fargo. The broker fee in this case would be enormus and going directly through the bank would be the best bet. You can find a lot of information on the web, including actually applying for the loan. This eliminates the need for a broker.

Good Luck!
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Old 11-10-2008, 07:30 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,323,408 times
Reputation: 1008
That would be true if facts didn't show that banks charge 1-1.25% higher than brokers.

I'm also not understanding in why it would be 'enormous'.

Facts show that banks charge a lot higher than brokers.

Please stop giving bad advice. This isn't the first time I have seen you give advice that has no bearing and/or no evidence to it.
It seems that you despise brokers, but you should still tell the truth.

Quote:
Originally Posted by chicagocubs View Post
I think that the OP should go to a major bank such as BOA or Wells Fargo. The broker fee in this case would be enormus and going directly through the bank would be the best bet. You can find a lot of information on the web, including actually applying for the loan. This eliminates the need for a broker.

Good Luck!
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Old 11-10-2008, 07:47 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,323,408 times
Reputation: 1008
Brokers in this market will be the best bet.

If you get declined from a bank then you would need to start the process over again.
A broker can place your loan with 2-3 banks, and it will be easier to be approved?
Is there an 'extra fee' to do this? No.
Sending a loan to 2-3 banks is very easy for a broker.

The facts show that banks charge higher than brokers BUT I still always recommend to shop both.

You'll never know you got a good deal unless you shopped both.
For anyone to tell you to stick with banks 'only' is giving you bad advice.
There is no harm in shopping with both as you can have your credit pulled within 30days, and it will only count as 1 credit pull.

Quote:
Originally Posted by johne482 View Post
Further to OP question..I would think in this market OP will need all the help she can get in finding the loan. So, is it best to go to banks or use a broker?
How much extra will the loan thru the broker cost?

Disclaimer:I am not looking for a loan but am interested because of th current market conditions. Hold the advertising plugs and please give real numbers.
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Old 11-10-2008, 08:47 AM
 
Location: South Charlotte
1,435 posts, read 5,223,122 times
Reputation: 486
Exactly. I've never ever seen a bank beat a loan broker's deal, NEVER.

Banks charge a lot more in my experience.

A good broker is worth their weight in gold for many of the reasons the above poster has stated.
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Old 11-10-2008, 09:12 AM
 
1,350 posts, read 3,304,622 times
Reputation: 418
See if your husbands company works with a relo company. When we relocated over the summer we used my husbands relo company and we went through their bank and they also told us that they would match any offer we received from any other bank.
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Old 11-10-2008, 09:26 AM
 
Location: Washington D.C. (Metro)
76 posts, read 169,050 times
Reputation: 31
The credit freeze is not affecting the mortgage industry at all. I am still closing plenty of loans each month without any trouble at all as long as the borrower has sufficient documentation.

Quick Facts

FHA Purchases
- 97.75% Loan to Value for first time homebuyers.
- 97% Loan to Value if not a first time homebuyer.
- Seller concessions up to 6%

FHA Refinance
- 95% Loan to Value if pulling Cash Out
- 97% Loan to Value if simply changing rate and term.

Conventional Purchase
- 95% Loan to Value max with up to 3% Seller Concessions

Conventional Refinance
- 85-90% Loan to Value if pulling cash out depending on which lender your broker goes to.

All of these loans are subject to the borrower providing full documentation which includes but is not limited to . . .

- 30 days most recent paystubs
- 60 days most recent bank statements, 401k statement, savings, etc.
- 2 years of W-2's
- 2 years of Tax Returns (if self employed)

If you're looking at a standard conventional fixed 30 year mortgage the rates right now as of 11:20am EST are at 5.875% - 6.00% with sufficient credit.

The jumbo rates at this time are around 8.00%.

If the loan amount exceeds $417k then it is considered a jumbo loan but you can break it up into two mortgages sometimes where the 1st will be $417k (80% Loan to Value) and the 2nd can take on the rest of the Loan to Value. This is a good idea to avoid paying jumo rates and also to avoid paying PMI (Private Mortgage Insurance).

Hope that helps!

Jonathan
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