Forum
« Best way to deal with mosquitos? Oil to gas conversion - monthly gas bills? »
July 16, 2008
Who is trying to get a Mortgage and what problems you are facing?
What is you experience getting a Mortgage? How are the market conditions affecting you? What are Banks/Mortgage Brokers are saying? What type of products are still out there.
Comments
We're halfway through and I should probably keep my mouth shut so I don't jinx myself, but basically we did find that going straight to the bank got us a lower rate. We're not trying to do anything fancy. We have a conventional down payment and we've got sufficient income to support our mortgage payments.
I applied for a mortgage pre-qual ~5 years ago and my experience was about the same: they wanted thorough documentation of our income, savings and employment history.
Otherwise, it doesn't seem to me that there is anything special afoot.
My guess is that people who are looking for HELOCs or were counting on refinancing have a different story though?
Posted by: amanda at July 17, 2008 9:25 AM
My husband and I have been working with a mortgage broker and just got a loan commitment this week. Our situation was pretty straight forward too-- we were looking for a conventional loan, we have good credit, neither of us are self-employed or depend on an annual bonus, we have the income to cover our payments, are we're putting more than 20% down. We were very worried about the appraisal but it came in higher than the price we’re paying. Nothing is set in stone until the closing obviously but to this point it’s been pretty smooth sailing.
That said, the broker who we are working with has repeatedly told us it's a whole new world out there. For people doing more creative or complicated financing, it can be really difficult. He said he’s been strongly encouraging his ‘riskier’ customers to have at least a 10-day mortgage contingency in their contracts.
Posted by: fawn at July 17, 2008 10:13 AM
Got a straight up 30 year mortgage just fine. Credit is good, not the highest, but it wasn't an issue in any way. Normal documentation (as compared to my previous 2005 experience). Used a broker, had a lot of options through them. Got a very great low rate on a house that cost a bundle and we put down the regular amount. Didn't really see a problem, and the process moved quickly.
Posted by: Park Place at July 17, 2008 10:14 AM
This is a strangely constructive and non-hysterical post from the What...
What gives?
Posted by: wasder at July 17, 2008 1:17 PM
Three years ago we got a mortgage in a snap although income lower, FICO lower, and downpayment much lower.
Today, we just sold and are having challenges obtaining a good rate for a new house. My Fico is over 720 but I'm a 1099 now; husband good income but Fico in high 600's and recently changed jobs. This makes us undesirable...we can still get a mortgage it's just the rate is not attractive.
Yes, so I say it's more challanging. However, like previous posters already stated if you have 20% down, FICO score 720+, and have W2s its still a smooth process. Even 10% is ok, you'll just have to pay PMI.
Posted by: kdabrowski at July 17, 2008 1:49 PM
My husband and I are just thinking about being prepared in case we stumble across a bargain. I called a bank just to see if my numbers matched theirs and I was told "with your scores, as of today you can put 10% down. However, because NYC is a declining market we will soon only do mortgages with at least 15% down."
Posted by: nosleeptil at July 17, 2008 2:25 PM
Recently obtained a 30yr fixed putting down 10% through a mortgage broker. Very good credit scores. No signs of trouble, though it was noted to us at the beginning that an interest-only loan would not be an option. (we did not want to pursue this anyway...)
Posted by: squaredrive at July 17, 2008 2:40 PM
If you have the credit scores, the down payment at least 10 percent and the income to justify your monthly payments.
(use the 60/40 rule) where 40 percent of your income goes to pay your mortgage and any associated expenses you will be fine. If you don't then maybe home ownership just isn't for you at this time.
Posted by: Xander Crews at July 17, 2008 3:34 PM
Same story here. Got pre-approved in about 10 minutes, even though my partner just took a new job. We were looking for a bridge loan as well, and that didn't seem to be a problem. We were putting down 10 percent with the bridge, then an additional 45 percent when we paid off the bridge. They didn't give us any grief about the bridge, which I thought they would. Our credit scores are good, but not astonishing. Oh, they also told us we could keep the bridge loan as a heloc after the sale if we wished!
Same documentation required as we needed six years ago. If you're solid, it seems fine out there. They still have to give mortgages to someone.
Posted by: Architerrorist at July 17, 2008 3:38 PM
We had no problems either. Got a 30-yr fixed at 6.25% in the burbs, though it was locked back in may. FICOs over 720 and putting down over 50%.
What was interesting was the new temporary jumbo limits they set in place ($729,750). At first we didn't see much rate advantage between $400K and the new limit. But we started seeing better rates under the new limit around the time we locked, particularly on ARM products. I think more and more banks will start offering a bit better rate once they get accustomed to it, though it may be that the temporary status of the new limit keeps them from changing their business practices.
Posted by: bklyndoug at July 17, 2008 3:41 PM
What - Am surprised to say that your Q was too generic and I wonder if the responders stating that they've had little trouble are all looking for loans on a Coop/Condo or Sgl Family with a loan amount under $729,000 (or $790,000).
As far as I can tell trying to mortgage a 3 family house even if you're living in it as your principal place of residence is getting much harder. Not only with the limited (and shrinking) number of banks prepared to entertain such loans but also seeing the interest premium over 1 family loans increasing.
If you bank with Citibank you'll find the bizarre situation where CitiMortgage (as 1st mortgagor) will loan on a 3 family however Citibank who handle HELOC's will not. (although they did up until 3 months ago)
Posted by: 99luftballons at July 17, 2008 3:44 PM
I am trying to get a 30y fixed rate for $417K / 10% down and it's a nightmare as I am self-employed...
Tried with a mortgage broker who was treating me as a "difficult" case and now trying to get a FHA (government) mortgage through a regular bank...
It's not easy at all.
Posted by: abitbol_d at July 17, 2008 4:29 PM
"What - Am surprised to say that your Q was too generic and I wonder if the responders stating that they've had little trouble are all looking for loans on a Coop/Condo or Sgl Family with a loan amount under $729,000 (or $790,000)."
The reason I posted this question, I wanted to get a snap shot of mortgages now. I know people still have access to capital.
"I am trying to get a 30y fixed rate for $417K / 10% down and it's a nightmare as I am self-employed..."
I know the "self employed" thing is hard. Most banks have remove S/E and Stated products.
"As far as I can tell trying to mortgage a 3 family house even if you're living in it as your principal place of residence is getting much harder."
HELOC's are dead. Did you know most of the HELOC's given in the last couple of years are non preforming. Most of them might be written off.
Thank you for responding! I hope you have good luck and no I not schizoid.
The What
Someday this war is gonna end...
Posted by: what at July 18, 2008 2:08 AM
Hey what,
While you arent busy prophesizing Armageddon, how about some useful advice?
Wait or buy?
When?
Where?
Listings that provide value?
Inquiring minds want to know.....
Posted by: slick at July 18, 2008 2:47 AM
What - you are wrong. I just posted above that the Bridge Loan I was approved for is also a HELOC, which was complete news to me. And its for several hundred thousand. We didn't even ask for it. It was just handed to us.
Posted by: Architerrorist at July 18, 2008 9:37 AM
What - you are wrong. I just posted above that the Bridge Loan I was approved for is also a HELOC, which was complete news to me. And its for several hundred thousand. We didn't even ask for it. It was just handed to us.
I think people with good track records are getting the red carpet treatment. I've had 2 helocs and 5 mortgages with clean records in the past 12 years.
Posted by: Architerrorist at July 18, 2008 9:39 AM
Thought you'd told us many months ago you were a mortgage broker yourself. "What" gives?
Posted by: NeoGrec at July 18, 2008 5:38 PM
Post a comment
Please be patient while your comment is published. It may take a moment.