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km9

Advice

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What does APR represent? Just nervous.

Response

Thanks Clay it is 30 years.  I'm hoping to promote in the next couple years and then think about a lone to get the equity to 20% on the home so I can drop $230 pmi/ month.  Just an idea.

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What does APR represent? Just nervous.

Response

btw FHA @ 3.5%.  I just needed some confidence before signing.  I was paranoid a little that there was some additional costs after I pay the closing amount.  I now realize that APR is just the government nanny's way of showing what the true % interest would be if you threw the closing costs in with the monthly interest rate.

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What does APR represent? Just nervous.

I'm about to sign documents this morning, but I am paranoid about the high APR.  I got 4.5% interest and the APR is listed as 5.2%.  Now is the extra % due entirely to closing fees including the 1 point that I payed at closing?  Or could there be extra monthly or yearly fees involved.  I am just trying to make sure there is no extra fee each year of the mortgage that the lender may have charged aside from 4.5% compounded interest as well as hazard insurance, pmi, and real estate taxes.  

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When is it a good idea to rate lock? Does it cost a fee to rate lock?

Answer

Find house, make offer, when accepted, pay deposit to escrow.  When escrow opens, call the lender to lock the rate or float it a few days if you want to see if rates will go up.  If you float, the ball won't start rolling on the loan until you lock.  No fee.

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How do you squeeze out all of the agreed $ amount for seller paid buyer closing costs?

I was promised 3% to be paid buy seller for my closing costs as in my contract.  Now I'm told that because of the closing month (February), there is no longer a 7 month tax impound and instead I have to pay upfront taxes through June.  So supposedly I cannot include the 7 month impound in the 3% seller paid costs and will have to put up an additional $1100 at closing above the GFE because of this. The escrow person said that there was no other closing cost items that could be paid by seller.  (Hope that didn't confuse too much.)  So what can I do to recoup the lost $1100 that the seller agreed to pay?  I mentioned to my agent about having the bank install an oven or something, but only as a last resort if the money can't be credited to me at closing.

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Hazard insurance has my information wrong. Do I tell them?

Got a quote that seems good.  Great coverage for a reasonable price.  I am almost ready to close escrow and the insurance rep wants me to sign the forms to get started.  I sign and return the document as requested.  Then I noticed on the forms that a couple of items were marked "no" that should be "yes".  It asked if the home is within 1000 ft of brush.  It also asked if there was a 30% slope for more than 20 ft. near the house.  Both answers are supposed to be "yes", but I was never asked about these things.  Should I bring these items up and chance having to scramble around for another insurer so late in the game?  Or should I wait until after purchase and deal with it then?  I am already $850 deep (appraisal, etc.)

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I plan on switching realtors. Do I need to send a "break-up" letter to my old one?

Answer

Just send an email.  Point out what pissed you off.  I had a worthless agent in the beginning that was referred to me by a coworker (terrible idea btw).  She would contact me out of the blue with "I have some time to look at houses, do you want to set up an appointment?"  She worked with me at her convenience.  She told me that I could not buy short sale properties because she had never sold one and once I put an offer in, I was locked with them for up to 6 months.  Strong ignorance that I figured out later.

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Is it normal for an insurance company to request a copy of the home inspection report?

Response

It is the hazard (fire) insurance company and I am in the middle of escrow.  They quoted me a price and now want to see the inspection report.  I figure they will tell me that I can't use the fireplace but I don't know about the rest.  This is a foreclosure with a lot of small issues that I can fix myself.  I hope this insurance guy isn't going to yank me around right now after I just signed up with auto insurance with them.

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