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Old 01-13-2013, 10:49 PM
 
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My husband and I have been sort of househunting, and then today we found something that we love (we're not in a rush to buy but we may not be able to pass this house up). The issue is the mortgage. We moved here from the UK two years ago - I'm a US citizen but lived in the UK for 15 years. When we file our 2012 tax return, we will have two years of tax returns. But at the moment, I'm told that it would be difficult for us to get a mortgage without that 2012 tax return. We have a 40% deposit and we can borrow the other 60% from family until we get the mortgage, so we can buy the house no problem. My question is: if we wait a few months to apply for a mortgage when we are in the house (we can't complete our return anytime sooner due to the family business and getting all the accounting together), will our rate be worse if we are already in the property? Is it still considered a 'purchase' mortgage?
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Old 01-14-2013, 07:32 AM
 
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With over 20% down I do not see why would be turned down for a mortgage. Do you have bad credit scores?

If not you should talk with a local loan office to see whatprogram would fit your situation
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Old 01-14-2013, 08:04 AM
 
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Thanks - we'll find another mortgage advisor. We were told that unless we had two years of tax returns, we couldn't get a mortgage. Back to my original question, do you know if we get a mortgage after we're in the property if the rate will be worse than if we were to get a mortgage before buying?
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Old 01-14-2013, 08:13 AM
 
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Considering the amount you are putting down I don't see the 2 years being a show stopper.

If you buy the house cash you wouldn't be able to take out a mortgage after the fact. To get a mortgage it needs to be part of a sell. What you would do is try to get a home equity loan and those are typical higher than a mortgage.

I would suggest that you just get a good loan office and he/she will be able to get you into a mortgage that would give you the best rate.

From what you say I assume the amount you are making now would conform to dti levels, I'm assuming good to excellent credit and 20% downpayment with another 20% in reserves. I say that makes you a strong buyer.
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Old 01-14-2013, 09:32 AM
 
4,548 posts, read 11,568,687 times
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Quote:
Originally Posted by stars View Post
My husband and I have been sort of househunting, and then today we found something that we love (we're not in a rush to buy but we may not be able to pass this house up). The issue is the mortgage. We moved here from the UK two years ago - I'm a US citizen but lived in the UK for 15 years. When we file our 2012 tax return, we will have two years of tax returns. But at the moment, I'm told that it would be difficult for us to get a mortgage without that 2012 tax return. We have a 40% deposit and we can borrow the other 60% from family until we get the mortgage, so we can buy the house no problem. My question is: if we wait a few months to apply for a mortgage when we are in the house (we can't complete our return anytime sooner due to the family business and getting all the accounting together), will our rate be worse if we are already in the property? Is it still considered a 'purchase' mortgage?
Are you self-employed or W-2?
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Old 01-14-2013, 09:24 PM
 
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Thanks - you've answered all my questions. yes, our credit is excellent. I'm W-2, my husband is self-employed.
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Old 01-14-2013, 10:16 PM
 
Location: MID ATLANTIC
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Can you qualify on your income alone? If not, the latest underwriting guidelines as of October 2012 now require 2 years returns.......but that does not mean you couldn't find someone with portfolio money, especially with that kind of down payment.
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Old 01-15-2013, 09:31 AM
 
4,548 posts, read 11,568,687 times
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Originally Posted by SmartMoney View Post
Can you qualify on your income alone? If not, the latest underwriting guidelines as of October 2012 now require 2 years returns.......but that does not mean you couldn't find someone with portfolio money, especially with that kind of down payment.
^^What Smart said.
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Old 01-15-2013, 10:02 AM
 
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Of course "portfolio lenders" have standards too and in my experience there is a curiously unbalanced relationship between what sorts of standards are applied for those folks willing to be pay ridiculously high interest rates vs folks with the odd documentation problem -- frankly I would recommend refinancing after the fact before I would pay even an extra 3\4% ...
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Old 01-15-2013, 08:00 PM
 
532 posts, read 1,397,084 times
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Quote:
Originally Posted by stars View Post
My husband and I have been sort of househunting, and then today we found something that we love (we're not in a rush to buy but we may not be able to pass this house up). The issue is the mortgage. We moved here from the UK two years ago - I'm a US citizen but lived in the UK for 15 years. When we file our 2012 tax return, we will have two years of tax returns. But at the moment, I'm told that it would be difficult for us to get a mortgage without that 2012 tax return. We have a 40% deposit and we can borrow the other 60% from family until we get the mortgage, so we can buy the house no problem. My question is: if we wait a few months to apply for a mortgage when we are in the house (we can't complete our return anytime sooner due to the family business and getting all the accounting together), will our rate be worse if we are already in the property? Is it still considered a 'purchase' mortgage?
You can get a fixed-term 'cash out' mortgage after you buy the house with cash. I am in the process of doing that now. The rate is not terrible--I was offered 3.5 with 2500 closing costs. I didn't really shop around to find a great deal--I just stepped into Wells Fargo. I know I got suggestions for other places that would be better, but I just didn't have the time. Also, I am only getting 100,000 and that raises my rate.

You have to wait until they transfer the deed. It was about 2 months for me. Also--your buying price 'sticks' for one year--you can't appraise for any higher than what you bought it for.

To be honest, I am actually going with a 4% with no closing cost. I just hope to pay it off very fast.

You can also get helocs. I signed up for a heloc for 80% of the purchase price as soon as I bought the house. (Had to wait for the deed to transfer, and also, in my case, for enough repairs to be made that I could get a certificate of occupancy.) It was very easy, and quick, no appraisal needed, no closing cost whatsoever. Heloc is about 3.5%, no closing cost, but rate is tied to prime.
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