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Old 06-01-2018, 10:14 AM
 
1,512 posts, read 565,559 times
Reputation: 2944

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Quote:
Originally Posted by juggar View Post
Im looking to buy my first home, I have a 750 credit score (per lenders credit pull).

I have a 2017 $30k car that I pay taxes on yearly, and pay them when they are due. I have done this for all my cars. In fact, I own multiple cars.

So why the HELL are they nickel and diming me to put money into an "escrow" each month as part of the payment? Its unnecessarily inflating the monthly cost, causing DTI issues.

I obviously can pay the $500 annually just like I pay my car taxes when they are due.

Any way to stop them from pulled this childish garbage? Its like you trust me to pay $650 a month but not the $500 annual tax fee?? wtf?

Not to mention they included $14 for a "Credit report" in the loan estimate. Over my dead body im paying that. I will walk away.
They have to itemize all charges for that USDA loan. And itemize based on actual cost incurred by the lender. They canít just throw a generic doc fee to smooth your ruffled feathers.

Youíre not buying a 30K car here. Youíre getting a six-figure government guaranteed loan for no money down.
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Old 06-01-2018, 10:34 AM
 
4,543 posts, read 11,549,619 times
Reputation: 3063
Quote:
Originally Posted by juggar View Post
Its not about being "worried" about $14 dollars its the fact they went out of their way to itemize a thing that really should not have been. Its nickel and diming when they already will receive 82% of the loan in interest over the life of the loan (30 years).

They go, "we'll get $94,300 in interest over the life of this loan, better go ahead and charge him $14 for the credit report. Gotta keep the lights on! "

Its the principle of the matter, Auto dealers dont do this or at least, its rolled into the document fee.

I dont know any other 25 year olds with $120K in cash, in fact, I dont know anyone in my town except for a few very rich folk. This is rural Western NC. No one pays cash. Im just jaded at their blatant rapacity.
"Escrow garbage"....now that's funny. If you don't want to escrow, save up 20% for a down payment and get a conventional loan.

As for the interest....the lender is not going to receive any of that interest.

$14 for a credit report is CHEAP. The ones I pull are $30.

You will find that the lender will itemize ALL the costs involved with the loan and you will find that list to be extensive.

Good luck!
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Old 06-01-2018, 10:45 AM
 
95 posts, read 39,014 times
Reputation: 48
might be good wisdom to bite the bullet with the USDA loan (generally has a higher rate, mortgage insurance, and escrow account requirements), then refinance into a conventional (single loan or combo with HELOC) when you attain equity.

The USDA will help you get into the home and stop paying rent while gaining home equity, the reward in 3-5 years is getting a conventional loan where you are more in control of your finances and can structure the loan the way you like it.
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Old 06-01-2018, 10:49 AM
 
356 posts, read 241,925 times
Reputation: 343
Quote:
Originally Posted by LMC White Collar View Post
might be good wisdom to bite the bullet with the USDA loan (generally has a higher rate, mortgage insurance, and escrow account requirements), then refinance into a conventional (single loan or combo with HELOC) when you attain equity.

The USDA will help you get into the home and stop paying rent while gaining home equity, the reward in 3-5 years is getting a conventional loan where you are more in control of your finances and can structure the loan the way you like it.
Probably the best plan, I pay $1200 a month for rent. For the last 4 years. Its time to buy and build equity.

You'll have to pardon my coming on strong in the initial post, Ive only ever dealt with car loans and personal loans. They seem to be a far cry from.... all this.
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Old 06-01-2018, 10:58 AM
 
10,271 posts, read 6,500,789 times
Reputation: 10847
Quote:
Originally Posted by juggar View Post
Probably the best plan, I pay $1200 a month for rent. For the last 4 years. Its time to buy and build equity.

You'll have to pardon my coming on strong in the initial post, Ive only ever dealt with car loans and personal loans. They seem to be a far cry from.... all this.
A home is the biggest purchase of most people's lives. It's complicated and an expensive process because in the end it's worth it. You are buying a home and for many people it's about the same as they pay in rent. It's not like a car loan, you can't stop paying for your home and have a tow truck take it away a few months after not paying. Foreclosure takes a long time and they take your home and your land.

If you guy a 125K home it's 360 payments or $347.22 plus interest, which can cost as much as the principal payment in 30 years. plus insurance and taxes. If you pay extra a month on the principal the faster you pay it off and the less interest you pay. The great part is you are not paying rent, which will surely go up in 30 years and when you are done paying you have an asset that you can sell if you took care of the house. if your market heats up and the property becomes worth twice what you paid in a few years, you can sell and take the earnings and buy a smaller home or another home in a lower cost area.
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Old 06-01-2018, 11:02 AM
 
10,271 posts, read 6,500,789 times
Reputation: 10847
Quote:
Originally Posted by LMC White Collar View Post
might be good wisdom to bite the bullet with the USDA loan (generally has a higher rate, mortgage insurance, and escrow account requirements), then refinance into a conventional (single loan or combo with HELOC) when you attain equity.

The USDA will help you get into the home and stop paying rent while gaining home equity, the reward in 3-5 years is getting a conventional loan where you are more in control of your finances and can structure the loan the way you like it.
I always thought USDA had lower rates.
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Old 06-01-2018, 11:10 AM
 
Location: Gray, TN
1,965 posts, read 3,535,964 times
Reputation: 796
Just wait until someone explains PMI to you.
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Old 06-01-2018, 11:23 AM
 
3,325 posts, read 3,264,474 times
Reputation: 8438
Well, if you don't like the bank's deal, find another. Of save every penny and buy your house for cash.
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Old 06-01-2018, 11:36 AM
 
Location: Columbia, SC
8,848 posts, read 17,447,111 times
Reputation: 6202
Quote:
Originally Posted by juggar View Post
Probably the best plan, I pay $1200 a month for rent. For the last 4 years. Its time to buy and build equity.

You'll have to pardon my coming on strong in the initial post, Ive only ever dealt with car loans and personal loans. They seem to be a far cry from.... all this.
It's a quite bit different buying a house. If you're willing to walk over a $14 fee then you deserve your fate, whatever that may be. The ones I usually see are $35. Heck, we charge $25 to tenants for credit checks.
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Old 06-01-2018, 11:53 AM
 
Location: Boise
570 posts, read 527,665 times
Reputation: 1246
$14 for a credit report, I haven't seen that since before 2008.

Its not uncommon for the credit report to be refreshed, have supplemental reports, and other credit services to the point that it is over $60 or more.

The escrow account is required by most loans these days, and if you do get the approval to get it waived, there will be a fee or rate increase associated with the increased risk.

You might think "I'm good for it" but that sort of thinking is ONE of the causes of the 2008 crash. That is why no doc, stated income stated asset, and subprime and other exotic loans are largely absent from the mortgage marketplace in 2018.

As someone else said earlier, If you want the money, you play by the rules.
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