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Replies (16)
Three things come to mind.
1) WOW, that anyone is still doing these!
2) WOW, that is a lot of money for a 200k loan!
3) WOW, that you would consider paying this!
Don't you have any other options to prove your income?
1) WOW, that anyone is still doing these!
2) WOW, that is a lot of money for a 200k loan!
3) WOW, that you would consider paying this!
Don't you have any other options to prove your income?
- Rob Robertson, "Mortgage Broker"
- Contributions:169
I think I would get a second opinion. Find another lending option. Use the internet if you have to. Call your accountant, attorney, minister, or trusted friend, for a referral, if you have to.
(Unfortunately, I'm a CA lender.)
Customarily, an origination fee of 1% for services rendered is acceptable for a wholesale par rate (if you are getting a 20 or 30 year fixed rate mortgage, you are probably getting a really good rate).
If you had another lender option... you might be able to apply "Consumerism 101" to get the origination fee reduced.
Stamp taxes are "taxes" that your state collects, for the mortgage and/or real estate purchase transaction, and are collected at the closing. Each state is different, as not all states collect a stamp tax.
Title insurance premiums are determined by your loan amount, but can differ based on the Title Insurance Company (you should be able to get it down by perhaps 15 or 20%, just by asking your loan officer, who can call the Title Officer and ask for a discount. Just remember: Insurance involves commissions.).
If you don't want to shop your loan, just stand your ground and pay what you are willing to pay; 1% origination, 20% off the title insurance premium. You should be able to find another lender with about an hour of research, which you can remind your loan officer. The research is worth the savings... given your loan amount.
No reason to pay extra just because your income is stated. It's not like it takes any extra work to do your loan. And as far as extra risk... it's worked into the interest rate... so forget about the "canned script" you might get as a result of your objection to the higher fees... it's just smoke.
Good luck.
(Unfortunately, I'm a CA lender.)
Customarily, an origination fee of 1% for services rendered is acceptable for a wholesale par rate (if you are getting a 20 or 30 year fixed rate mortgage, you are probably getting a really good rate).
If you had another lender option... you might be able to apply "Consumerism 101" to get the origination fee reduced.
Stamp taxes are "taxes" that your state collects, for the mortgage and/or real estate purchase transaction, and are collected at the closing. Each state is different, as not all states collect a stamp tax.
Title insurance premiums are determined by your loan amount, but can differ based on the Title Insurance Company (you should be able to get it down by perhaps 15 or 20%, just by asking your loan officer, who can call the Title Officer and ask for a discount. Just remember: Insurance involves commissions.).
If you don't want to shop your loan, just stand your ground and pay what you are willing to pay; 1% origination, 20% off the title insurance premium. You should be able to find another lender with about an hour of research, which you can remind your loan officer. The research is worth the savings... given your loan amount.
No reason to pay extra just because your income is stated. It's not like it takes any extra work to do your loan. And as far as extra risk... it's worked into the interest rate... so forget about the "canned script" you might get as a result of your objection to the higher fees... it's just smoke.
Good luck.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Run away and run away as fast as you can!!!! That is craziness!
- sandstormli
- Contributions:13
this is on a 30 year fixed , thanks all for the helpful info
- Clay Branch, "Georgia Loans"
- Contributions:7836
sandstormli, getting a rate of 5.75% on Stated Income 30 Yr Fixed is excellent. I know of no lender that can offer that. The state tax stamp fee is what it is. If I am you, I am willing to pay 1.5% origination but not 2% for this rare loan. The title insurance is $1150 more than my Atty would charge for both lender and owners title policies. Do you know what a 4506-T form is and if yes, do you have to sign it to get this loan? Also, what is the dollar amount of assets you are showing on the application and that you are proving with monthly statements?
- sandstormli
- Contributions:13
we own a cash business, curently just over $70k in the bank , have been depositing about 3500 a week over the last 2 months, and what is 4506-T ? i guess the rate is ok, the closing of $10000 plus property taxes for 6 months another $6000, looks kind of high i mean $10k for getting a $200k loan $7000 to $8000 would be more like it
- sandstormli
- Contributions:13
what is 4506-T ? thank you guys , thanks Clay
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
It's a form that allows the lender to request a copy of your tax returns.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Its an IRS form. They can send it in to the IRS to verify what you have filed on your taxes with the IRS... Scary stuff if you ever go deliquent or are pulled for a random audit.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Why is it scary stuff?
- Robert Lowery, "Bob Lowery"
- Contributions:2097
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
MIssed that part about claiming what you weren't making.
There are still one or two out there that do those types of loans.
There are still one or two out there that do those types of loans.
- Rob Robertson, "Mortgage Broker"
- Contributions:169
Former associate of mine somehow got a stated-income loan last September. He was ok with higher rate (6.875% fixed 30yr) at the time, as he bought a house with 30% down that peaked at $1.2M less than 18 months prior... only $417K financed with 780 fico, strong assets, and two businesses he owned, but he couldn't make it work full doc.
I wouldn't do the loan for him.
You have to draw the line somewhere.
I wouldn't do the loan for him.
You have to draw the line somewhere.
- sandstormli
- Contributions:13
WE MAKE ENOUGH MONEY TO BUY A $800K HOUSE WITH $20K IN TAXES A YEAR BUT I WANT TO BUY A CHEAPER HOUSE $300K WITH $12K IN TAXES - THIS WAY I SHOULD NEVER HAVE FINANCIAL PROBLEMS AS I WILL HAVE PLENTY OF SAVINGS - WILL HAVE A NICE LIFE AND STILL BE ABLE TO SAVE AND SEND MY KIDS TO BEST SCHOOLS THEY CAN GET IN TO.(NEIGHBORHOOD I AM BUYING IN IS STILL A VERY NICE ONE WITH VERY GOOD SCHOOL). WE HAVE ALL CASH BUSINESS, THE DAY STATED INCOME LOANS ARE ALL COMPLETELY DEAD WILL BE THE DAY HOUSE PRICES ON LONG ISLAND NY WILL CRASH COMPLETELY
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Well, hope you are comfortable signing that 4506T.
- Clay Branch, "Georgia Loans"
- Contributions:7836
sandstormli, I was trying to figure out if you are getting a stated income loan or if the loan officer was using an asset conversion to arrive at the income. If you showed him $70k in assets, then it looks like it's stated. That rate and on a 30 year is excellent. The fees are high because he/she thinks you cant get this anywhere else, except the title insurance fees are paid to the closing agent ( maybe a kickback here?). I asked about the 4506-T because most lenders will now execute this form before funding the loan. It gives the lender access to your tax returns to see what you actually filed and compare to the income stated on the application. How far along are you in the process, just submitted or like a week from closing? 1 more thing, are you dealing with a mortgage broker or a lender/bank who is funding the loan? Thanks
IS this ok for closing costs? $9500 on a #300k house with $100k down so loan ammount is $200k, loan
$9500 closing cost( no property taxes included in this- they are 6 months = $6000) on a $300k house with $85k down so loan amount is $215k, loan origination fee alone is 2% (what is state tax/stamps that is $2397) title insurance $1800 ?is that a lot?,
this is a stated income loan with 747 credit score, no dent whatsoever, rate 5.75
what do you guys think about all of this?
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