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Why am I pissed? Because I provided a whole ****load of documentation that went above and beyond what most people have to provide and then right before closing it's like, oh yeah, the phone number on your credit report is inactive - you're screwed. Apparently, it had my previous number on there. I'm like what?? You're telling me this NOW when you checked that almost 4 weeks ago?? I wasn't even aware of such a thing - I could have easily fixed that back then.
Is there more to the story than this?
I had something similar happen when applying for a mortgage last fall. All I had to do was write a letter to explain the error and fax it to my loan officer. It was just a quick, simple, "there is an error on my credit report, the phone number listed is my previous number from when I lived at the Oakeood address from 1997-2001."
My understanding is that credit reports often contain such errors.
Yes, something stinks in Denmark. There is either more to this story than we're being told or this is just an argument for paying cash for a house - something that is unwise for MOST people, unless you have significant other assets.
Why would any give 100% of their cash and lose a tax a possible tax deduction? Borrowd money is stupid cheap these days if you have the credit.
What I don't understand is why people would pay $1 in interest to save ONLY 15-28 cents in taxes. That seems pretty stupid to me.
05-05-2013, 10:45 AM
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Quote:
Originally Posted by jlawrence01
What I don't understand is why people would pay $1 in interest to save ONLY 15-28 cents in taxes. That seems pretty stupid to me.
Because the calculation isn't that simple. There's a whole host of other factors that go into determining when it's a good time to buy. Tax deductions are but one thing.
If you have the cash saved up, interest rates are low enough (and effectively even lower due to tax incentives) that it would be foolish to spend all that money on the house up front, when you could invest the money at a much higher return than the interest you're paying on a mortgage. It's the same reason you shouldn't buy a car with cash, even if it's possible for you to do so.
My sister paid cash for her house four years ago and it was not because of the difficulty in getting a mortgage. She sold her previous home for a great profit, and since the money was there, she saw no reason to borrow to buy another one. Her house now is double in value and it's all hers, and she can easily manage HOA, property tax, and utilities on her small SS without touching the rest of her fund.
My sister paid cash for her house four years ago and it was not because of the difficulty in getting a mortgage. She sold her previous home for a great profit, and since the money was there, she saw no reason to borrow to buy another one. Her house now is double in value and it's all hers, and she can easily manage HOA, property tax, and utilities on her small SS without touching the rest of her fund.
Well her decision works for her, and she is able to manage her taxes and utilities and other fees. However the value of her house is not there until she sells. She could get a loan against it, but she can't recoup her investment unless she sells, as with any other investment.
There is a lot to be said for having her house paid for in this case, though. If she needs to go to assisted care in the future, she can sell her house and use the profit to pay for that.
Definitely something more to this story, or the OP just worked with a screwed up lender.
I've heard about how hard it is to get a mortgage, but we just closed on Friday on a loan for our new house. My credit is sub-800, and I was still able to get a mortgage with only 5% down. I don't have a huge pile of assets, so it's not that my situation is unusual or anything. You've just got to find a lender who's willing to work with you.
I would think that anyone who can pay 100% cash for a home, would have no problem getting a house loan.
True for most people, but not me. I applied for a mortgage loan but have no credit history since I haven't borrowed money for 20-25 years. I lived overseas for 17 of those years, and paid cash for vehicles and a house over there. The US bank's insulting advice was to give some credit company $5,000 and then "borrow" that money back to build up a credit history. Stupid advice. I paid cash for my US house; no mortgage; 'nuff said.
while i do agree they have made it hard to get a loan i dont agree that with good credit, work history and 20% it is difficult to get approved.
as stated many times before throughout the fourm i rather have a 3% mortgage and invest the extra cash for a 6%+ or greater roi
What I did. 3% to me is basically nothing, its inflation. Doubt any of us will see interest rates this low again. My mothers first house had interest in the teens.
Plus, I rent out the extra rooms. They pay my mortgage, taxes, and utilities, and put $700-$900 a month in my pocket. I didn't actually want to buy a house, but I got tired of the misseries of renting. It worked because I found more or less the perfect property where all the numbers worked and I got a great deal. Lost interest in my other investments as I've been wrapping up school and working on other stuff. But they are up well beyond 3%.
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