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Did they end up closing after your initial contract date? If so, you might be eligible for their loan guarantee refund. They will refund you your first payment of principal and interest. My realtor had someone else this happened to and they gave them the refund and I am going to request it since our original closing date should have been Friday. I would look into it, even though you mentioned they lowered your interest rate already.
Is this date the final, agreed upon date between buyers and sellers that sits on the contract while everything else is processed, such as the appraisal, etc? Just to clarify, if the lender doesnt have their stuff together and for some reason, the closing date is inched forward, banks may offer a concession of a one month payment on the loan? Do most banks offer this sort of thing, and does it have to be written into a form we sign (do we ask for it?) or is it only a particular bank you're talking about?
Absolutely. Conventional loan programs allow the seller to contribute up to 3% towards the buyer's closing costs. Depending on how the contract is worded this may be applied to lender and title fees, points (origination and discount), and prepaids and reserves. FHA allows for 6% and VA allows 4%, although VA guidelines define seller concessions a bit differently.
Oh I see. So its basically the seller's contribution towards closing, and it can affect the rate on one's loan? Crap. My realtor sucks...Why wouldnt she have TOLD us that??? Or am I misunderstanding? Do this mean to say that the more a seller contributes towards closing, the lower the rate a buyer can potentially get? I am going to be so mad if thats the case...
So sorry you are having trouble still. Great news that they got you back to 5%. I'm happy to hear you were successful with that. We actually had a pretty good loan officer......so even though all this ridiculous stuff occurred with the down payment %, I felt they more than made up for it with the rate reduction (which they suggested and I never asked for). I hope you get through this.........we closed a week ago now and it really feels like a distant memory already. Hope you can have the same experience.
I'm jealous...I cannot wait to be in those shoes. I cant look forward to anything else but rubbing those little keys in my hands. I daydream about going into the house and just not wanting to leave...sleeping on the floor without my furniture...looking in all the cupboards and closets...teehee'ing for hours with permagrin and wild eyes. This waiting is nuts.
Location: central, between Pepe's Tacos and Roberto's
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Originally Posted by jctx
Oh I see. So its basically the seller's contribution towards closing, and it can affect the rate on one's loan? Crap. My realtor sucks...Why wouldnt she have TOLD us that??? Or am I misunderstanding? Do this mean to say that the more a seller contributes towards closing, the lower the rate a buyer can potentially get? I am going to be so mad if thats the case...
Not necessarily. It depends on what you would like the seller concessions to go to. So say you are buying a $200,000 home. Let's say that your total closing costs are running $5500, including prepaids and reserves and an 1 point origination fee. The seller has agreed to 3% seller concessions. With $500 left over from the $6000, there really isn't room for a discount point UNLESS you decided to pay some other closing costs out of pocket. (Please excuse the random numbers, it's early).
Our agent said that it depends on how the contract is worded, regarding closing costs. One way is that they just pay the closing costs. In our case, our closing costs were roughly $5700. The wording in our contract indicated that there was up to 3% that the seller would be paying for closing cost so we put the difference that was available (about $1500) to buy down our interest rate.
BTW- We went back in on Wednesday morning and resigned the HUD's. The LO had the money dispersed incorrectly the first time. The property recorded that afternoon and we are moving our stuff in on Saturday. My husband called the LO today to ask him about the "loan guarantee" but he didn't answer his call and hasn't called back yet (no big surprise there). We were at the home today and some neighbors already came by to say "hi". So excited to be moving out of the in-laws this weekend
Just curious about this bolded part. We are relocating as well and we've been given some examples of what we can get them to pay for, since they pay "relocation expenses", but when we have Qs about it, they have to be sent down to their compliance department. Do you happen to know what portion of a home purchase complies as an expense in this area? Somehow, if it isnt tax deductible for them (I think) then we can't expense it from their account. Anyhow with info on this, I would love to hear your thoughts. Now is the time for us to speak up on our requests and sending in bills to the appropriate department. Sooner the better, then it comes out of THEIR account directly and not as a reimbursement after us forking it out first. Thanks. (Also, the deadline is pretty strict...once we're moved, I think the opportunity to submit requests dies).
I think each company sets their own rules about what expenses they will and will not pay. I was confused about it as they kept saying they did not pay "points" and that is really what this is.....however, the fine print did indicate they paid for the "origination" fee. Also, these expenses were direct billed by Wells Fargo to our relocation company and everyone agreed to them and indeed it was all accepted. It was a nice surprise for us.......but strange as the origination fee definitely lowered the interest rate.....just like a "point" would have. Our "origination fee is treated like a typical non-recurring closing cost, and all of those were paid by my company. It probably pays to ask the questions ahead of time as it could save you a lot of money.
We had the appraisal come back with "over supply" checked but the appraiser didn't back up the claim with numbers so it was tossed and we are getting another appraisal.
I don't think we can afford another 5% down if the next appraisal indicates a declining market.
Location: central, between Pepe's Tacos and Roberto's
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Originally Posted by buyerbuyerpantsonfire
I hate that I need to post here, too.
We had the appraisal come back with "over supply" checked but the appraiser didn't back up the claim with numbers so it was tossed and we are getting another appraisal.
I don't think we can afford another 5% down if the next appraisal indicates a declining market.
Unfortunately, Rockingham County is a declining market to the first 2 mortgage insurance companies I checked.
Unfortunately, Rockingham County is a declining market to the first 2 mortgage insurance companies I checked.
Thanks for checking...
Is there a master list online someplace??
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Relocation expenses
