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Old 03-08-2010, 04:28 PM
 
10 posts, read 27,736 times
Reputation: 19

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Hello!

My wife and I are gearing up to purchase a house in NoVa. Being as we are both first time home buyers, I have a few questions that I am hoping those in the know out there might be able to answer, as I cant find these online. These are about the mortgage approval process. Ill present my numbered list below.

  • When pre-approved, I will lock in my rate. It looks like these are usually 30 days and sometimes 60 days. My question is, does this mean we would have to close in 30-60 days before the lock in expires, or have a contract/offer accepted by a seller in that timeframe?
  • Would an income of $92,000 reasonably qualify for a loan amount of $340-$360,000 in this area? It seems OK on mortgage calculators. Our credit score is Excellent as well.
  • If we close on June 1st, when would our first mortgage payment be due. July 1st? And how would I calculate the total interest I have to pay at close to cover the month? Finally, is there a way to push that interest payment off and pay it later with the mortgage payment?
  • Any good buyer agent suggestions that are from CU Realty? Wed like to use them to get the rebate. We are specifically looking for people with experience in the Fairlington and/or Shirlington area.
  • Anyone know much about West Village at Shirlington? Good investment/bad investment, what price do you think wed be able to talk down a 2/2 sunroom condo?

Looks like I went into housing questions, so Ill stop there. Any help would be greatly appreciated before we go into lenders. I dont want to waste a bunch of credit checks on our profiles if it seems like we might not be able to buy this year. Of course, we really want to buy now after living here for 4 years and renting. Plus we would have to buy before April 30 before the first time home buyer tax credit expires.

I digress. Thanks much!
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Old 03-08-2010, 04:31 PM
 
Location: Northern Virginia
4,489 posts, read 8,781,796 times
Reputation: 3624
You posted almost these exact same questions last week...I think most of them would be better suited for the mortgage/real estate forums on here, really.
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Old 03-09-2010, 08:01 AM
 
Location: Censorshipville...
2,443 posts, read 5,651,283 times
Reputation: 1230
Quote:
Originally Posted by Star Champion View Post
Hello!

My wife and I are gearing up to purchase a house in NoVa. Being as we are both first time home buyers, I have a few questions that I am hoping those in the know out there might be able to answer, as I can’t find these online. These are about the mortgage approval process. I’ll present my numbered list below.

  • When pre-approved, I will lock in my rate. It looks like these are usually 30 days and sometimes 60 days. My question is, does this mean we would have to close in 30-60 days before the lock in expires, or have a contract/offer accepted by a seller in that timeframe?
  • Would an income of $92,000 reasonably qualify for a loan amount of $340-$360,000 in this area? It seems OK on mortgage calculators. Our credit score is Excellent as well.
  • If we close on June 1st, when would our first mortgage payment be due. July 1st? And how would I calculate the total interest I have to pay at close to cover the month? Finally, is there a way to push that interest payment off and pay it later with the mortgage payment?
  • Any good buyer agent suggestions that are from CU Realty? We’d like to use them to get the rebate. We are specifically looking for people with experience in the Fairlington and/or Shirlington area.
  • Anyone know much about West Village at Shirlington? Good investment/bad investment, what price do you think we’d be able to talk down a 2/2 sunroom condo?
Looks like I went into housing questions, so I’ll stop there. Any help would be greatly appreciated before we go into lenders. I don’t want to waste a bunch of credit checks on our profiles if it seems like we might not be able to buy this year. Of course, we really want to buy now after living here for 4 years and renting. Plus we would have to buy before April 30 before the first time home buyer tax credit expires.

I digress. Thanks much!
As far as the the interest lock, I was able to ask my lender for a lower interest rate since my closing took so long and I wasn't charged a fee to lock or change the rate. It was a foreclosure so the bank was dragging their feet. The "fee" to lock interest rates is negotiobale in my opinion. Also I didn't lock my rate at the pre-approval process, I was able to lock it in about a week before closing. My lender based all his calculations and good faith estimates on the interest rate that I was quoted during my pre-approval, but I got a new GFE when I locked in.

Qualifying for a loan isn't based just on your income alone. It's also based on the amount of debt you owe. For example, your 92k salary doesn't look as good if you have 50k in school loans, 2 car payments, alimony payments and lots of credit card debt.

As I understand it, you want to close near the end of the month. They calculate the taxes and payment prorated for the end of the month. So if you close on June 1st, you'd have to bring to closing the taxes/fees till the end of June and your first payment won't be till August 1st. The GFE would give you a pretty close estimate to what you'll need to bring to closing.

Personally I think the home buyer credit is a crock. If you read the fine print, you only get 10% of the sales price or up to $8k whichever is less. If you read the fine print, you only get 10% of the sales price or up to $8k whichever is less. So to get the full $8k, you'd have to buy an $800k home. Someone who can afford an $800k home probably doesn't "need" the credit and it won't make/break the decision to buy The market is being artificially driven by the credit. I would not be suprised that homes are selling for slightly higher than normal because multiple buyers are vying for the homes so they can quickly close by June 30th.

Strikethrough 'cause my fuzzy math skills this morning suck! I still don't like the credit. It's bolster the realestate market, rather than letting it correct itself normally.

Last edited by oneasterisk; 03-09-2010 at 09:05 AM.. Reason: Strikethrough 'cause my fuzzy math skills this morning suck! I still don't like the credit. It's bolster the realestate marke
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Old 03-09-2010, 08:51 AM
 
845 posts, read 1,940,334 times
Reputation: 293
you better check your Maff, asterisk................
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Old 03-09-2010, 09:06 AM
 
Location: Censorshipville...
2,443 posts, read 5,651,283 times
Reputation: 1230
Quote:
Originally Posted by adolpho View Post
you better check your Maff, asterisk................
Sorry my fuzzy math skills suck this morning. I tried to edit the post, but it won't let me.

Anyways, you can ignore this section 'cause I forgot my abacus at home today:

So to get the full $8k, you'd have to buy an $800k home. Someone who can afford an $800k home probably doesn't "need" the credit and it won't make/break the decision to buy.
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Old 03-09-2010, 09:30 AM
 
Location: Loudoun Cty, Virginia
738 posts, read 2,429,653 times
Reputation: 621
To the OP - You really should go and ask a lender these questions. You can ask all the questions you want during your initial mortgage consultation before they begin pulling scores and starting the paperwork. They'll answer every question you have with much better accuracy than someone on the forums can guess about. Each situation is different and they'll look at the whole picture for your income/debt/assets/liabilities, etc
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