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So we thought we had some ideas how this loan matter for the 1st home would work....but the more I speak to loan officers the less we feel we understand...
I don't get why there's restrictions such as "no repairs" if outta 110k I'd put 90k down on a place? I mean seriously if I wanna put the new kitchen in myself so what, the bank ain't loosing nothing with this?
Or conventional vs VA as co signer > What is better I do not know
Or why form the day we pick a house til its all done paper wise with the bank its taking 6-8 weeks>
Is anyone out there who can break all this "loan stuff" into easy to be understood terms for us?
It sure seems like you are having some difficulty but not exactly sure what you are asking. If you are buying a home, you should be able to close within a month. I have had several purchase loans that closed in just over a week. I would suggest that you find a professional mortgage advisor to help you secure your financing. Some people, when searching for a mortgage, call around to find the loan officer that will do the loan for the cheapest money. That is a bad strategy cause as your parents might have told you, you get what you pay for. Not sure what you mean about the repairs, after you buy a home you can do what you wish as far as improvements. Next you ask about conventional or VA, which is better. VA will allow 100% financing, conventional you will have to put down at least 5%. Choosing which way to go will be based on if you have money to put down and how your credit is. I usually advise clients with credit score above 680 to secure conventional financing for several reasons that i can outline if you wish, but if you need a co signer, then you must go government financing. The time frame that it is taking is way to long. Things come up that can delay the process but 6 to 8 weeks is way to long. Please post back with some specific questions and i am sure several people on this board with respond with answers. There are quite a few very knowledge mortgage professionals on this forum.
Last edited by VictorBurek; 09-11-2008 at 06:03 AM..
Reason: left out a few words.
So you're saying conventional loan is better? (Me basing this of example: House 100-20k cost/ put down 90k)
No the way I understand the mortgage lady is that if the house itself need repairs they A) must be done by the current owner b) the appraiser won't approve. Is that true? Or is that maybe only somehting to do with the VA?
So the VA is what would delay the closing of a house?
Pretty much I am trying to figure out what best to do with all these loan types for our 1st home (based of above example) but in the process of figuring this out- We got lost.
If you are putting down such a large down payment, go conventional as conventional financing has the same rate as VA financing but VA has a up front fee of about 2% of the loan amount and conventional doesnt have this cost. If you are buying a distressed property, the lender may require all repairs to be done ahead of time. It depends on what kind of repairs. And appraisers dont approve appraisals, they just give their opinion of what they feel the property is worth.
Another thing to consider is that if the property is not in marketable condition a conventional loan may be hard to obtain. If it is less than perfect condition, you may have to get a rehab loan, make the repairs, and then refi into a conventional loan. Still not a confusing nor difficult process. You can also apply for a 203k rehab loan through the government that allows for minor repairs to be put into the loan.
@Victor: Now THAT sounds easy to understand for a change- Thanks!
The mortgage Lady was recommended to us by the Realtor.
@David: The mortgage Lady told me pretty strait out that if the house misses a kitchen & needs a window repaired right now, they'd not finance it at all with no type loan.
Cause I also asked her if its an option to buy the home as & then take on a personal or whatever other loan for 15k to fix up the house (e.g. kitchen new window, paint) she again said no they'd not do this.
Maybe its just my impression, but from what she said vs what you all wrote above, I feel like this girlfriend don't know anything herself really and/ or giving us incorrect info.
Yea...I got the same feeling once I read your posts before I replied....See I just thoughts its me getting confused over stuff but at the same time wondering why the heck you shouldn't be able to buy a house of which you're putting 90% down.....but talking to the wrong person can do that...
What you want to do is go to your local bank and get a portfolio loan as opposed to a secondary market mortgage loan. You will be able to buy the house "as is" this way and your closing costs will be far less. You will not get a 30 yr. fixed rate and the rate will be higher than the going 30 yr. fixed rate, but not a big deal on such a relatively small loan amount.
Also if you need funds for the improvements just put that much less down.
And our normal home banks would do the portfolio for a house then, if I understood you correctly.
No it wasn't to get the home improvement money on top the house loan, its either
A) Pay house cash & get loan for improvement
B) Get a small loan amount for the home (10K) and use the left over cash we have for improvement.
If that makes any sense now....
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