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We are buying with the intention of staying a while. We have moved a lot over the years and are worn out.
I am open to all sorts of feedback and insight. I feel good about the mortgage but its a huge decision and one I don't make often so my knowledge of these things is limited.
Are you just bragging here? As long as you aren't overpaying for the home, you look like you are in a better position than most people with that loan. How does your current monthly rent compare to your future mortgage, tax, and insurance payment? You have about $14,000 in seller paid closing cost, is the price of the home $14,000 more than the previously sold comparable? If so your neighbors will love you. Even though it is seller paid, the seller is getting the money from you to pay it, the reality is , you are paying for it. You are using a preferred lender which makes me think that it is new construction or something that can't do regular financing. If this is the case then you should consider it will be harder to sell until conventional financing becomes available.
FICO: 770's
DTI: within acceptable limits
Nothing negative to report for lending qualifications
Thanks
The closing costs look thick because they include property tax and homeowner's insurance escrows, and your VA Funding Fee, which is rolled in. I'm assuming you have less than a 40% disability from service.
Paying a point for a 6 month lock at that rate is fair. You have a sweet deal.
Thank you for serving our country. This loan is literally the least we could do.
Are you just bragging here? As long as you aren't overpaying for the home, you look like you are in a better position than most people with that loan. How does your current monthly rent compare to your future mortgage, tax, and insurance payment? You have about $14,000 in seller paid closing cost, is the price of the home $14,000 more than the previously sold comparable? If so your neighbors will love you. Even though it is seller paid, the seller is getting the money from you to pay it, the reality is , you are paying for it. You are using a preferred lender which makes me think that it is new construction or something that can't do regular financing. If this is the case then you should consider it will be harder to sell until conventional financing becomes available.
Not bragging at all, I am asking people who may be in the business to tell me if the offer seems like a good one.
The home is a brand new home and the builder incentive is 3% of the purchase price in closing cost allowance if you use one of their 3 preferred lenders.
I didnt have to use the preferred lender, I had a preapproval from another lender but it was hard to pass up that incentive of 3% and I think they are giving me a good deal but was just checking is all.
I dont believe I am overpaying and it has to appraise because its a VA home loan, at least thats what was explained to me, the VA is a lot more careful with appraisals.
The mortgage payment is 700 more then my rent but it is affordable at about 23% of my income.
The closing costs look thick because they include property tax and homeowner's insurance escrows, and your VA Funding Fee, which is rolled in. I'm assuming you have less than a 40% disability from service.
Paying a point for a 6 month lock at that rate is fair. You have a sweet deal.
Thank you for serving our country. This loan is literally the least we could do.
Thank you Pfhtex, these sorts of benefits are very nice and am happy I can use it. We are finally dropping anchor after many many military moves, my wife is happy to say the least.
My VA Funding fee is waived due to a military connected disability while on active duty.
those closing costs I listed do not include the property tax and homeowners insurance escrows I left them out because I didnt think they would matter because they should be pretty clear cut, I thought.
I am very happy about the rate lock. I am nervous about where rates may go, part of me think they will go lower the other part thinks they will go through the roof after the government fixes itself. Last summer I thought I missed the 3% boat and was hoping my rate would be under 5% which the rates starting to go up, I am very happy to have gotten 3.75.
I am wondering now if I should list all my closing costs because now I think they are really high if you thought my property tax and home owners insurance were included.
I am very happy about the rate lock. I am nervous about where rates may go, part of me think they will go lower the other part thinks they will go through the roof after the government fixes itself. Last summer I thought I missed the 3% boat and was hoping my rate would be under 5% which the rates starting to go up, I am very happy to have gotten 3.75.
You feel you are not over paying for the home and the price is inline, you are not borrowing more than the house is worth, so I think it is a good deal and if your Principal, Interest, and Taxes, are only going to be $700 a month more per month and you got a 6 month lock. I think you get a good deal You can talk to the lender and your accountant about the implications of paying points if you care so much about the lower interest rates, every program is different.
Also what happens if the house isn't built in 6 months?
Who is paying the discount points? With that exception, the deal looks super sweet. The points were specifically why I was asking how long you intend to stay in the house.
The six month lock is a hidden gem and one of the best reasons to use builder financing, IMO. We had it on our new home, but rates had actually dropped a bit by the time we closed so we exercised our one time free float down. BUT we did not start the six month lock until we were pretty damn sure the house would be complete in six months. IF it hadn't been done by the time that lock was over, there would have been big fights between us and the builder over who was going to pay that lock extension. So - can you get them to commit in writing to paying the lock extension if they cannot complete by a certain date?
I have a written (via email) statement that because my house build "might" go past 6 months and I am concerned about it, they removed the 1 time float down option within 30 days of close and instead did a "hard lock" so it will extend past the 6 months with no cost / inconvience to me.
I finally had a chance to post my closing cost summary and some other data relevant to my loan. I have been trying to compare to other things online and its hard to since some of the verbage is different lender to lender and locale to locale. The home is being purchased in Florida.
Finance Price $416,911
Builder paid closing costs $13,936
Loan Type VA w/ no funding fee Interest
Rate 3.75 w/6 month lock
APR 3.754
Term 30 year
Estimated Required services Borrower can shop for $778.00
Pest Inspection $125.00
Survey $568.00
Tax Service Fee $85.00
Estimated Total Title Charges $3,092.50
Settle/Closing Fee $350.00
Owners Title Insurance $265.00
Lenders Title Insurance $2,477.50
Estimated Total Government Recording & Transfer $5,846.02
Recording Fees $300.50
State Tax / Stamps $4,711.70
Intangible Tax $833.82
Total Closing Costs $15,140.63
Estimated Total Required by Lender to be Paid in Advance $2,214.17
Prepaid Interest Amount $214.17
Hazard Insurance Premium $2,000.00
Estimated Total Reserves Deposited with Lender $2,260.65
Hazard Insurance (3x166.67) $500.01
County Property Taxes (7x442) $3,094.00
Aggregate Adjustment Amount -$1,333.36
Total Prepaids $4,474.82
Total Closing Costs $15,140.63
Total Prepaids $4,474.82
Total $19,615.45
Less Seller paid closing costs $13,936.00
Total Due at Closing $5,679.45
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