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- Jennifer J. Erickson, "OaklawnRealty"
- Contributions:349
Catherine,
if your lender is allowing the 6% seller paid closing costs, then yes you can use the balance to have your UFMIP paid for at closing. Make sure your loan officer and underwriter approve your loan this way, as your total loan amount will be lowered. Best of luck on your purchase.
Eric
if your lender is allowing the 6% seller paid closing costs, then yes you can use the balance to have your UFMIP paid for at closing. Make sure your loan officer and underwriter approve your loan this way, as your total loan amount will be lowered. Best of luck on your purchase.
Eric
Ignore the RE agent.
The answer is NO. (structured as you state) Paying the UFMIP is all or nothing, you cannot pay a portion of it! It's just a matter of your loan officer structuring the loan differently. What they need to do is show the Full UFMIP being paid and you paying the remaining $2758 for other closing costs, it cannot be for the UFMIP.
The answer is NO. (structured as you state) Paying the UFMIP is all or nothing, you cannot pay a portion of it! It's just a matter of your loan officer structuring the loan differently. What they need to do is show the Full UFMIP being paid and you paying the remaining $2758 for other closing costs, it cannot be for the UFMIP.
- cvgalloway
- Contributions:18
Thanks HUGD - that's what I was wondering, if it was all or nothing - so the difference of $2758 that would be technically "closing cost" to us - could we finance that? Or would we need to pay at closing with the 3.5% required DP?
Thanks!!
- Andrew Adams, "203K Specialist"
- Contributions:9349
You cannot finance closing costs. Hugd is right all or nothing on UFMIP.
Your closing costs a $14,908 the seeller is paying $12,150. You will have to pay the difference at closing or the lender will have to pay the difference with over par pricing.
Your closing costs a $14,908 the seeller is paying $12,150. You will have to pay the difference at closing or the lender will have to pay the difference with over par pricing.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
better idea since it sounds like you are trying to limit your cash into closing...
Finance the UFMIP and use the excess to buy down your interest rate.
That will utilize all available closing cost credit and avoid needing to come out of pocket.
Finance the UFMIP and use the excess to buy down your interest rate.
That will utilize all available closing cost credit and avoid needing to come out of pocket.
- cvgalloway
- Contributions:18
Thanks Justin - that is exactly what I was thinking, but my lender told me that since the rate was locked in (about 3 weeks ago) that we couldn't buy points now. I think she's wrong. I thought you could buy at any time. I'm not asking her to lock in today rate, I'm asking to buy down the rate I already have. This is the THIRD time she has done something wrong on our loan. The paperwork was supposed to go to underwriting on Monday and yesterday she told us that she forgot to include UFMIP on the GFE and we need to resign.
Ugghhh....
Ugghhh....
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
Generally speaking, you can change to a lower rate and your pricing will updated based on whatever was available on the day you locked.
The lower rate will have less of a closing cost credit, which will increase the costs you pay, which is fine since you have the seller credit.
Your originator needs to speak with the secondary marketing department and confirm what options and updated pricing are available. If you change, you also will likley need a re-disclosure of your terms, which can delay slightly your closing date, so keep that in mind too if that is a factor on your timeline and deadlines.
The lower rate will have less of a closing cost credit, which will increase the costs you pay, which is fine since you have the seller credit.
Your originator needs to speak with the secondary marketing department and confirm what options and updated pricing are available. If you change, you also will likley need a re-disclosure of your terms, which can delay slightly your closing date, so keep that in mind too if that is a factor on your timeline and deadlines.
- Andrew Adams, "203K Specialist"
- Contributions:9349
The only potential catch with that is lower pricing not being available.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Your LO must be a glorified clerk. It's a shame you have to depend on free advice from Zillow to get your loan structured advantageously. Please tell us what sort of institution you are dealing with, and how you ended up doing, or attempting to do, business with them.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
Not being familar with Lousiana, I'll ask. How are you basic closing costs $10k on a $200k home. Are there some local taxes that I am unaware of
- cvgalloway
- Contributions:18
Hi Joe,
Maybe that's what I should be questioning as well....
Just to clarify - $10K is closing & prepaids...
origination charge - $4023
appraisal - $425
lender's title ins - $899
owner's title ins - $1409
termite cert - $125
recording charges - $300
deposit to escrow - $1650
daily interest - $325
HO/Flood ins - $1352
- cvgalloway
- Contributions:18
Hamp -
Yes, I'm getting really upset with her. It is a local mortgage company to Baton Rouge that was recommended by our realtor. When we were shopping for our mortgage, she was easy to work with and competitive. I also contacted my credit union but they are difficult to work with and they were a little higher at that time.
We really don't want to change lenders this late in the game. We need to close next week!! I've talked to Lending Tree today and with an FHA loan they stated if it's rushed it would still take about 20 days to close.
Yes, I'm getting really upset with her. It is a local mortgage company to Baton Rouge that was recommended by our realtor. When we were shopping for our mortgage, she was easy to work with and competitive. I also contacted my credit union but they are difficult to work with and they were a little higher at that time.
We really don't want to change lenders this late in the game. We need to close next week!! I've talked to Lending Tree today and with an FHA loan they stated if it's rushed it would still take about 20 days to close.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
that is a 2% origiantion fee. What is the rate and your credit score
- cvgalloway
- Contributions:18
credit score - 722 & 725, rate 4.25%
The origination "charge" of $4023 breaks down as
origination fee - $1954.12
Document prep - $25
Underwriting fee - $799
administrative fee - $295
processing fee - $795
document review - $155
Is this normal?
The origination "charge" of $4023 breaks down as
origination fee - $1954.12
Document prep - $25
Underwriting fee - $799
administrative fee - $295
processing fee - $795
document review - $155
Is this normal?
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
That is ridiculous.....Your realtor did you no favors referring this one. Maybe the underwriting fee is legit. The rest is junk and if you locked in at any point in time over the last 2 months there is no reason to charge the origination fee on top of that rate.
The problem is that you are stuck b/c you close in a week and you can not put the purchase in jepoardy. I am curious. What brilliant ideas does this rocket scientist have for the extra $1500 that is left over.
- cvgalloway
- Contributions:18
absolutely NONE....well actually she told us to do something outside of closing (meaning - ask the seller to pay us or something - but our realtor states that is illegal and she won't ask them to do that) or we need to change the sale price.
She just called me back - she locked us in at 15 yrs (I never told her to do this) then when I told her that was wrong, the rates were up a little, we watched, locked in at 4.25% for 30 yrs - she just called and said that the next 4% was also available, so they are changing our rate to 4%
thanks for all the feedback
She just called me back - she locked us in at 15 yrs (I never told her to do this) then when I told her that was wrong, the rates were up a little, we watched, locked in at 4.25% for 30 yrs - she just called and said that the next 4% was also available, so they are changing our rate to 4%
thanks for all the feedback
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
And I am guessing that is where the extra $1500 is going...To "buy down" the rate. I put "buy down" in quotes b/c you could get 4.0% over the last week or so without any origination fee. This will have to be redisclosed to you so keep an eye on added costs that are being smuggled in. The best thing you could do is at the closing table (provided the loan officer has the guts to show up) bring this up in front of everyone and watch them squirm.
- cvgalloway
- Contributions:18
Oh, I will be watching for any additional fees.....but she said no, that because of all the problems - and the range of time between when she locked us in (for the second time) and when the lower rate was available - they were able to just GIVE us the 4% rate
No, she is still aware there is a difference of $1500.....
That leads into a totally different discussion....
Is it illegal to ask the seller to pay us this money after closing? I know that we can't use this as funds for a downpayment (we have the downpayment already).
I'm guessing this couldn't really be written as an addendum to the contract, but could we (the buyers) personally contact the sellers and ask for this outside of the contract?
Thanks!
No, she is still aware there is a difference of $1500.....
That leads into a totally different discussion....
Is it illegal to ask the seller to pay us this money after closing? I know that we can't use this as funds for a downpayment (we have the downpayment already).
I'm guessing this couldn't really be written as an addendum to the contract, but could we (the buyers) personally contact the sellers and ask for this outside of the contract?
Thanks!
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
The sellers concession will have to be lowered b/c there can not be any extra money left over and that can not go towards your 3.5% down. Since these guys have done a "stellar" job, I would ask that the sales price and concession reduced by the $1500. Would force the realtor who pushed this lendr on you to do some extra work in typing up an addendum and the lender would have to rerun the numbers. Would not completely justify the $2000 of processing/underwriting fees they are charging
- cvgalloway
- Contributions:18
Thanks!
I just read something about title insurance - and that we don't need both borrower and lender - they are charging us:
lender's title ins - $899
owner's title ins - $1409
Are these reducant? Should I question this? Or is it legit?
Thanks
Catherine
I just read something about title insurance - and that we don't need both borrower and lender - they are charging us:
lender's title ins - $899
owner's title ins - $1409
Are these reducant? Should I question this? Or is it legit?
Thanks
Catherine
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
hard to say because the lender insurance portion takes into account the various junk fees that the the title company has. The owners portion should cover the actual insurance. Not sure how the title is ordered in Lousiana. In PA the realtor typically picks the title agent. May be a question for her.
- wayne lancaster, "funds2"
- Contributions:1175
Catherine,
It is unfortunate that all of the issues are being discussed at this late date. I see discrepancies of high fees, high closing cost, and a RESPA violation. (leaving out UFMIP on GFE and adding it later) To answer your question about receiving rebate from seller outside of closing, that would be mortgage fraud as you will be asked to sign document at closing that specifically states that did not occur. No one should suggest that as an option......if you could extend the closing date there could be significant benefits, but I realize that may not be practical or even possible. The tragedy of this is that you did not have an opportunity to compare lenders with your Realtors referred lender. Competing for a loan tends to result in loan officer's using a sharp pencil, which is not likely to result in selected loan officer charging excessive fees or above market rates. Zillow can be a good starting point.......as you can see from the feedback. Good luck.
It is unfortunate that all of the issues are being discussed at this late date. I see discrepancies of high fees, high closing cost, and a RESPA violation. (leaving out UFMIP on GFE and adding it later) To answer your question about receiving rebate from seller outside of closing, that would be mortgage fraud as you will be asked to sign document at closing that specifically states that did not occur. No one should suggest that as an option......if you could extend the closing date there could be significant benefits, but I realize that may not be practical or even possible. The tragedy of this is that you did not have an opportunity to compare lenders with your Realtors referred lender. Competing for a loan tends to result in loan officer's using a sharp pencil, which is not likely to result in selected loan officer charging excessive fees or above market rates. Zillow can be a good starting point.......as you can see from the feedback. Good luck.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
I can't say how it works on Louisiana, but in CA, typically the owners title will be paid by the seller AND that payment is separate from the 6% credit offered towards buyer costs. It is more or less assumed to be a sellers cost off the bat before any negotiation for buyer cost credit occur. However, even when this is the case, the lender is still required to disclose the owners title to you on your estimate.
You would need to consult your purchase contact and your realtor for further clarification on that item.
The lenders title is certainly your fee and would be paid as part of the 6% credit.
You would need to consult your purchase contact and your realtor for further clarification on that item.
The lenders title is certainly your fee and would be paid as part of the 6% credit.
- cvgalloway
- Contributions:18
Thanks for all the help!
I'm expecting a call this morning to discuss the fees and come to an agreement so that we can get this to underwriting.
Thanks
Catherine
I'm expecting a call this morning to discuss the fees and come to an agreement so that we can get this to underwriting.
Thanks
Catherine
- cvgalloway
- Contributions:18
Since this topic has gone in so many directions....I'm going to expand on it - but please let me know if I should repost as a new topic.
I'm now reading that the mortgage company can not change a GFE - is this correct? So, if she forgot to put the UFMIP on it and then calls me the day it should have gone to underwriting and says oops I made a mistake, here is the correct GFE - can she do that? I'm reading that the lender is bound by the charges and terms.
Thanks again!
I'm now reading that the mortgage company can not change a GFE - is this correct? So, if she forgot to put the UFMIP on it and then calls me the day it should have gone to underwriting and says oops I made a mistake, here is the correct GFE - can she do that? I'm reading that the lender is bound by the charges and terms.
Thanks again!
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
If you applied for a FHA loan and the original GFE that was sent did not have the UFMIP listed, it is my understanding that they can not add it in later as some sort of "changed circumstance". They would be forced to pay that fee. I would double check and hopefully others will weigh in to confirm.
- cvgalloway
- Contributions:18
Thanks Joe - yes, others please confirm or not...
Now, if I tell the lender that they have to honor the original GFE and pay the $4400 in UFMIP - can they say "forget you" and not continue with the deal?
I'm pretty sure that I could cancel at this point if I wish, but can they because they made a mistake?
Thanks!
Now, if I tell the lender that they have to honor the original GFE and pay the $4400 in UFMIP - can they say "forget you" and not continue with the deal?
I'm pretty sure that I could cancel at this point if I wish, but can they because they made a mistake?
Thanks!
Direct from RESPA FAQ:
"29) Q: If a mortgage broker provides the initial GFE and the lender accepts the loan, can the lender issue a new initial GFE?
A: No. The lender is bound by the charges and terms disclosed on the initial GFE provided by the mortgage broker."
Link
The lender obviously accepted the GFE so they are toast!
Link
The lender obviously accepted the GFE so they are toast!
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
And at those terms, they have the money to pay for it. Shoot at 4.25% with those fees the lender was looking at over 3% of income
- Timothy Compton, "tacompton"
- Contributions:119
Your lender is wrong. You can buy down the rate. It will be subject to the same pricing as the day you locked.
Can the seller pay a portion of my UFMIP?
Can the seller pay $1642 towards our UFMIP and we finance the balance of $2758?
Thanks - Catherine
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