Bank of American & General Loan help (PMI, loan officer, premium)

[newhomebuyer80]

Thanks for the answers for my previous threads. My new house is coming along well. It will be done by April 4th week - May 1st week. I didnt get confirmed word from builder yet. I didnt lock the rate yet.

I have sent ALL the documents to BOA already. Following tasks are showing as pending on my tasks in their websites.

ANYONE experienced with BOA - help me out

Task 1. Hazard Insurance: Provide Current Individual Single Family Hazard Insurance Coverage Of 100% Of Insurable Value Of Improvements Estimated By Property Insurer. Any Limits/Exclusions Of Extended Coverage Perils Must Be Covered Under Separate Rider Or Policy. Maximum Deductible Of 5% Of Policy'S Face Amount.

Question 1: I am planning to go through Farmers Insurance - Do i need to show 1 year insurance or month-month insurance

Task 2: Provide A Copy Of The Most Recent U.S. Financial Institution Asset Account Statement To Verify Evidence Of 2 Months Principal, Interest, Taxes And Insurance.

Question 2: my monthly payment will be around $1100 + $200 --> As per the task do I need to show additional 2 X $1300 = $2600 in Statement?

Task 3: Provide Complete Institutional Statements (All Pages) Covering The Most Recent Two Months, Verifying Sufficient Funds For Closing And Reserves, As Applicable. Provide Reasonable Explanation And Documentation For Any Large Deposits Within The Last 60 Days.

Question 3: I need to show the money needed for Closing costs and reserves. Which means I need to show Task 2 $2600 + Closing Costs about $3700 + Reserves $1000 + HOA fees $1500 = $8,880 IN ADDITION TO DOWNPAYMENT CORRECT?

my down payment is $26,000 + $8,800 = $34,800.

Issue is I have $27000 as of today. End of next month (close to closing time) I will get $6000 - Will I get rejected because of this? How to tackle it?

[dad2jules]

1- You will pay 1 years insurance premium on the settlement statement.
2- You need to prove you will have $2600 (principle, interest, taxes, and insurance) after you close.
3- Do you have any earnest money deposited? This will be credited to you on the HUD.

Example:
$26k down payment
$3700 closing costs
$2600 reserves
$1k reserves
$1500 reserves

$26000 +
$3700 +
$1000 +
$1500 +
$2600 -
$ earnest money =
required amount of money to be proven.

Let me ask you this $1500 for HOA- what in the world do you get for that? That is an astronomical amount of money, what are the ongoing fees? HOA deposits are normally 2-3 months of regular HOA dues.

If you need to use the $6k you will get just before closing to qualify you will need to prove the source of the funds. Bonus, tax return, etc. Showing up from granny probably won't fly unless the loan program allowws gift funds and then you would have to get a gift letter from the source.

Hope this helps but you really should consult the loan officer you are working with at B of A.

[newhomebuyer80]

Thanks for your answers.
Answer 1 is Very clear now
Answer 2 is clear too same as Answer 3

Purchase price : $260,000
Downpayment : $26,000 ( 10% to avoid PMI of $160 )
Total Money Required closing l : $8,800
Total Money : $34,800
Earnest Money & Upgrades : -$6,900
Current Bank (my account) : -$20,000
My Wife ( joint account ) : -$5,500 ( can I show this on loan, her pay checks only in that account)
In April Pay checks : -$6000

I spoke with Title company, that my stupid community they charge ( Conveyance fee + transaction fee + bla bla = $750 , PLUS HOA Dues $843.00 = Total around $1500 )

And I need to buy Home Insurance + Wind Insurance = $2000

[dad2jules]

Sounds like your pretty close on funds here. I would get with your LO on Monday and review the numbers with them. If your wifes not on the loan you will have to get her to write a letter of explanation stating that you have 100% use of funds in joint account, and yes even if she is on title- banks are getting crazy these days.

By the way where is this?

It looks like an incredible home for $260k.

[newhomebuyer80]

Thanks Jules....I will talk with my Loan Officer on Monday clearly about this issues. I cant show my bank account in India? I have $8000.

House is in Pearland TX - 20 miles from Houston TX. I am really excited to move in without any issues.