question for realtors or loan officer?

[askinsurance]

You can get a second home mortgage (even if you do not currently own a home where you are) this way you can use the income stated in your current location to obtain the home in a new state. Ask you broker about this,. Same situation happened in my family and it worked out great

[ch123]

Originally Posted by VickiR

Don't forget when you say that closing costs are typically 3% of the purchase price that you are not including escrows. I realize some people don't escrow but for those that do...its nice for them to have planned accordingly. Also...if there is no origination fee, how do your lenders get paid? For instance...I recently had a client whose "friend" did their loan. He didn't charge an origination fee but he did charge about $700 in "processing fees, committment fees, etc. Come on folks...the lender isn't doing his job for free...how is he getting paid??? Vicki

Mortgages are generally never sold at par. If say the retail rate for mortgages is 6%, the broker/loan officer generally gets 1/2% rate discount as a kickback which roughly translates into 2% of the loan amount. And there are all kinds of rebates and special commissions available from the lender all the time on top of that. That why you see that for large loan amounts the lender might not charge processing fees or other lending fees. If you have a 1M mortgage they might even pay all your closing costs.

I should know, I set up a mortgage company in 2000.

[ChipL]

Originally Posted by speedkelly

Hi I would like to know how you go about buying a home in NC...without actually having a job there?....little background I have xlnt credit 800+ able to put down 20 to 25% down payment...currently making around $70,000 a year in a different state....what options are open to me?....I do not really want to do a stated income loan (what most people call a liar loan)...can I use my current income from a different state?...what differculties will I come up against...looking to buy a home for around $250,000....either close to raleigh or richmond va.....currently working in the legal field...
Also what kind a closing costs would I be looking @ on top of the actual house price?....thanks for any replies...

Almost two dozen posts and not one complete answer to your question? Everyone's hung up on whether points are good or bad, broker vs lender...whatever.

Lets' get to the meat of the original post.

YES, you can get a mortgage without living here. You don't want to go stated? Fine. You still may be able to go full documentation (show all income and assets), that is, your income may handle any new debt you take on. It's all going to depend on what your total debt to income ratio is.

You can treat the home here like a 2nd home or like an investment home. Second homes have more favorable rates, similar to rates given to primary residences.


With your scores and your down payment, there are also other what's called "documentation" types available to you: No Ratio, No Income No Asset and No Doc that you can use to get a mortgage. Yes, the industry has taken a beating the past few months, but these programs still exist. And yes, the rates are higher, but to answer your question, in your case, it's very possible to buy a home without buying a home here.

So what's your next step? Contact a broker or two and a bank or two to see what they can do. (There should be no need for your credit to be pulled by any of these during your initial inquiry phase). Remember that brokers, as a general rule, have access to more banks and therefore have access to a greater number of differing loan programs. Whereas, once again generally speaking, banks sometimes can work cheaper than a broker. Bottom line, explore all your options.

[ready for change]

Sounds like you have had lots of inquiries. I am a mortgage loan officer for a Federally Chartered Savings and Loan licensed in all 50 states. I have had several clients in NC, it is an inexpensive state to buy a house in as far as closing costs. You would buy your house as a "2nd home" since you are not employed there. It wouldn't be considered a "primary residence" due to that. But 2nd homes are financed much like primary residences. If you are seriously interested in real numbers, why don't you contact me and I will preapprove you (not prequalify) and my numbers will be within $100-200 of what actually happens at the closing, hard to be exact due to property taxes and homeowners insurance, but we can come very close. No surprises. I am new to this (actually looking to possibly move to NC myself, which is why I am on this site) but I checked off in my profile that emails can be sent to me. So, hopefully if you want to get in touch with me you will be able to!

[Nadjalou]

Make sure your lender isn't charging you a higher interest rate in exchange for no fees. Some lenders let you choose either a low rate with fees or a slightly higher rate with the typical fees. And definitely shop around. The fees will usually be labeled different things so you have to look at the total figure with escrow and compare that to the total figure of another lender and if they're similar, compare the interest rates. Some lenders also offer other benefits such as a no-cost refinance if you have a certain % invested and that's nice if the rates ended up going down again, and some allow you split your monthly payment into 2 half payments at no cost which is supposed to shave 6 years off a 30 yr loan. Also, make sure your lender doesn't have a prepayment penalty. Our last loan was through our credit union and I do trust them more than for-profits but their fixed rates are not very competitive for people with excellent credit.

[Nadjalou]

Oops I meant slightly higher rate with no fees

[ch123]

Originally Posted by speedkelly

Hi I would like to know how you go about buying a home in NC...without actually having a job there?....little background I have xlnt credit 800+ able to put down 20 to 25% down payment...currently making around $70,000 a year in a different state....what options are open to me?....I do not really want to do a stated income loan (what most people call a liar loan)...can I use my current income from a different state?...what differculties will I come up against...looking to buy a home for around $250,000....either close to raleigh or richmond va.....currently working in the legal field...
Also what kind a closing costs would I be looking @ on top of the actual house price?....thanks for any replies...

The cheapest rate, IMO, would be a stated income loan. Chase has got a stated Income product at 6%. And it might be a "liar loan" but you are not pulling wool over the lender's eyes because the other criteria for the stated loans is tougher than a full doc loan. Loans are made on the assumptions and the following criteria:

1. That you can service the loan. Typically 30% of annual income
2. That you have enough equity to make the 20% down payment and have 6 months reserve for PTI
3. And that you are responsible stable individual-higher credit rating

The higher down payment combined with your higher credit score for a stated income loan tells the lender that you are not going to walk away from the loan. A person with a lower credit score and higher income will have a tougher time getting a regular loan than you getting a stated income loan. It's just the way lenders work their credit risk.

I can't help you with the closing costs as I am not familiar with NC fees.