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Old 11-25-2013, 08:12 AM
 
57 posts, read 133,886 times
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We just placed a contract on our first home and now entering the buying process. We got pre-approved through my co-buyers mother's bank (she's the branch manager). Because of this we didn't shop around or anything during the pre-approval process. I am now wondering if we should or if the deal we have is in line with current mortgages.

We are buying at $190,000 with interest rate of 4.375% and APR of 5.3880%. We both have good credit (750+ score). Attached is the breakdown I was provided. I was reading up on the difference between interest rate and APR. It seems like we may not be getting a good deal? However everything I read had to do with conventional loans so I am not sure on how they differ with USDA.

Any insight or direction of future reading would be appreciated as always

Attached Thumbnails
First Time Home Buyer USDA Loan & Rate Question-loan.jpg  

Last edited by jdougal; 11-25-2013 at 09:00 AM..
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Old 11-25-2013, 12:21 PM
 
3,323 posts, read 7,274,182 times
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Jump all over that.
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Old 11-25-2013, 03:41 PM
 
57 posts, read 133,886 times
Reputation: 14
Quote:
Originally Posted by Pfhtex View Post
Jump all over that.
Lol thanks I suppose. Any specific reason? Just trying to learn as much as I can through the process.
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Old 11-26-2013, 12:54 PM
 
1 posts, read 1,684 times
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I cannot figure out how to post a thread, but i have a question so I am posting here to see if someone will answer...

I am in the process of applying for a USDA loan, it has been approved by the bank and they sent to USDA for final approval. I have my school loans in a graduated status and my payments are lower, this amount is used in my DTI by the bank. I noticed that USDA requires you to use the highest repayment amount of the loan, are they going to catch this and deny the loan??? My bank said nothing about it I was just reading some things and came accross it. Help!
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Old 11-26-2013, 09:54 PM
 
Location: MID ATLANTIC
7,607 posts, read 17,670,540 times
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OP, I agree, that looks like a good estimate. The fees are reasonable and well within the market. Your score is what is driving that rate down. Just make sure your lock is valid through your closing date.

Bondified - What was the payment in the credit report? Did the lender have any reason to ask you for your school loan papers? Was there something not on the credit report correctly and you had to provide your school loan docs? Hard as it is to believe, they aren't going to go looking for incorrect information on the credit report, UNLESS, there is known missing information, like a payment amount. If that were the case and you turned in the loan papers and they missed the graduated payment........but enclosed it in the loan file to USDA, then USDA very well may pick it up and increase the DTI. That said, only 1 in ~25 files requires a full credit package as a spot check. (You can ask the processor, "hey, what exactly was sent to USDA on my file for them to make their credit decision?")

I'm going to tell you if it got by the bank's underwriting, which is far more rigorous than the agency, you should be fine. Do you have a moral obligation to tell them they missed it? Only you can answer that question, we are not judge and jury. I know you said you read it, but are you certain it is the guideline for your particular region? I ask because our guidelines vary from our West VA office's guideline. I am not saying go out of your way to hide it, but don't go out of your way to get into your own way.
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