Posted on: 04th Aug, 2007 10:47 am
Over two years ago, my husband and I claimed bankruptcy. A mortgage forclosure was included with that. We have no new debt, but also no new cedit either. We have recently applied for a home loan and have a GFE (good faith estimate) from WWM for a FHA loan. Any advise, tips or "pitfalls" we should be aware of?
Hi Joe,
As it has been more than 2 years since you had bankruptcy fha loans are possible to qualify for. But tell us more about the details of your gfe, like what rate are being offered on the loan? Its an arm or frm? Loan term? How much is the mortgage amount? How much is your income? Will you be able to afford the monthly payments? You had financial problems because of which you had to file bankruptcy, is your financial position better now?
Miller
As it has been more than 2 years since you had bankruptcy fha loans are possible to qualify for. But tell us more about the details of your gfe, like what rate are being offered on the loan? Its an arm or frm? Loan term? How much is the mortgage amount? How much is your income? Will you be able to afford the monthly payments? You had financial problems because of which you had to file bankruptcy, is your financial position better now?
Miller
Can you give the details of your gfe then we would be able to provide suggestions on whether you are being charged any amount higher than normal.
Based upon the limited information you have supplied (no trade lines & young bankruptcy), the FHA program will serve you well.
You will be hard pressed to find a better alternative (again based upon the limited info provided), and the downside to FHA is the upfront MIP (mortgage insurance premium) of 1.50% (although this can be financed).
Good luck!
Regards,
Scott Miller
You will be hard pressed to find a better alternative (again based upon the limited info provided), and the downside to FHA is the upfront MIP (mortgage insurance premium) of 1.50% (although this can be financed).
Good luck!
Regards,
Scott Miller
Our financial situation is much better. My husband makes about 57K yearly, with about a 2K raise yearly. We were offfered a 7% interest rate, not fixed. But we were quoted for all kinds of extra fees. We were trying to buy a land home package deal for a mobile home. The land only cost 17K and the mobile home 59K. But by the time they tacked on tons of extra fees, the total package deal was offered at 110K. This price didn't even include a septic or a well (which would be needed for the area). These improvements will cost about 10K at the most. It the GFE did include hazard insurance, but not flood and fire. The salesman, of course, assured us that all the extra fees were reasonable and unavoidable. I have a bad feeling this company is preying on those who have lost their homes on the Gulf Coast and have less than perfect credit.
You should contact at least another lender to know what kind of rates and expenses they are charging and compare them with the ones this company has offered to get a better idea if you are being charged higher than normal.
'But we were quoted for all kinds of extra fees.'
Tell us about those extra fees that lender is asking for. Also which state you are in. We would be able to tell whether they are higher than normal or not.
Tell us about those extra fees that lender is asking for. Also which state you are in. We would be able to tell whether they are higher than normal or not.
Items payable in connection with the loan:
Loan Origination fee: 1% 1075.25
Loan Discoount? 2% 2182.74
Appraisal Fee 500.00
Credit Report 65.00
Underwriting fee 600.00
Doc prep 450.00
Admin 400.00
M&L Processing 550.00
Title charges:
Closing or Escrow fee 550.00
Attorney fees 550.00
Owner's Title policy 1,000.00
Express closing 100.00
Government recording and transfer charges:
recording fees 100.00
Additional Settlement Charges:
Estimated closing cost 8,122.99
Items required by lender to be paid in advance:
Interest for 3 days @ 20.9304 per day 62.79
Mortgage insurance premium 1,612.88
Hazard insurance premium 1,320.00
Reserves deposited with teh lender:
Hazard insurance premiums 4 mths @ $110 per month $440.00
Mortage ins. premium reserves $44.80 per mth
taxes and assesment reserves 6mths @ $40 per mth $240.00
Estimated prepaid Items/Reserve 3,675.67
Total estimated settlement charges 11,798.66
Total estimated funds needed to close:
purchase price/payoff 110K
loan amount 109,137.88
UFMIP/FF Financed 1,612.88
Est. closing cost 8,122.99
Est. prepaid items/ reserve 2,062.79
Amount pais be Seller (-) 6,200.00
DPA -2451.00
DEP -4000.00
Total est. mthly pymnt.
principal & interest 726.09
hazard insurance 110.00
Real eastate taxes 40.00
mortgage insurance 44.80
total monthly payment: 920.89
land purchase price: 17K
mobile home purchase price 59K
7% interest rate term: 360 mths
A seperate purchase order has :
construction loan fees 4,998.28
Loan Origination fee: 1% 1075.25
Loan Discoount? 2% 2182.74
Appraisal Fee 500.00
Credit Report 65.00
Underwriting fee 600.00
Doc prep 450.00
Admin 400.00
M&L Processing 550.00
Title charges:
Closing or Escrow fee 550.00
Attorney fees 550.00
Owner's Title policy 1,000.00
Express closing 100.00
Government recording and transfer charges:
recording fees 100.00
Additional Settlement Charges:
Estimated closing cost 8,122.99
Items required by lender to be paid in advance:
Interest for 3 days @ 20.9304 per day 62.79
Mortgage insurance premium 1,612.88
Hazard insurance premium 1,320.00
Reserves deposited with teh lender:
Hazard insurance premiums 4 mths @ $110 per month $440.00
Mortage ins. premium reserves $44.80 per mth
taxes and assesment reserves 6mths @ $40 per mth $240.00
Estimated prepaid Items/Reserve 3,675.67
Total estimated settlement charges 11,798.66
Total estimated funds needed to close:
purchase price/payoff 110K
loan amount 109,137.88
UFMIP/FF Financed 1,612.88
Est. closing cost 8,122.99
Est. prepaid items/ reserve 2,062.79
Amount pais be Seller (-) 6,200.00
DPA -2451.00
DEP -4000.00
Total est. mthly pymnt.
principal & interest 726.09
hazard insurance 110.00
Real eastate taxes 40.00
mortgage insurance 44.80
total monthly payment: 920.89
land purchase price: 17K
mobile home purchase price 59K
7% interest rate term: 360 mths
A seperate purchase order has :
construction loan fees 4,998.28
We live in Louisiana.
Hi Scout,
Welcome to the forums.
I guess you have the feeling that your loan company is a predatory lender seeking higher closing costs from you and that's why you've given the list of costs. Well, I would agree with Jonathan here. It's better that you do little bit of comparison shopping. This will help you to find out what loan offers and respective costs you are being charged by different lenders in the market.
In case, you wish to check whether yours is a predatory lender, go through the section on How to identify predatory lenders.
Take Care
Welcome to the forums.
I guess you have the feeling that your loan company is a predatory lender seeking higher closing costs from you and that's why you've given the list of costs. Well, I would agree with Jonathan here. It's better that you do little bit of comparison shopping. This will help you to find out what loan offers and respective costs you are being charged by different lenders in the market.
In case, you wish to check whether yours is a predatory lender, go through the section on How to identify predatory lenders.
Take Care