tgibson Posted February 14 Report Share Posted February 14 I am looking into my first home purchase. I was wondering if one of you (or all of you) could help me out with two questions:(1) What is the best site to use to determine how you can figure out what your monthly mortgage payments would be if you bought a home for X with Y downpayment and Z interest rate?(2) As I deal with a mortgage broker (still finding one, although I have a friend in the NYC-area who is likely going to help me out), what can I do to improve my “rating†(i.e. get the best possible deal). If any of you can help shed some insight on this, I’d appreciate it.Thanks dawgs.-Tim Quote Link to comment Share on other sites More sharing options...
V. Barbarino Posted February 15 Report Share Posted February 15 if you have good crdiit 650 and above go to a bank! not a broker!!!http://www.mtgprofessor.com/ Quote Link to comment Share on other sites More sharing options...
Kamikaze1414779018 Posted February 15 Report Share Posted February 15 DO you know your rating?If your rating is low, below 650-680, you will have to go get some of the bad debts off your credit record.It is not a quick job, it could take a few months, but will be better than having a bad score and paying higher rates Quote Link to comment Share on other sites More sharing options...
tgibson Posted February 15 Author Report Share Posted February 15 DO you know your rating?How do I find that out? Good point. I have no reason to believe mine will be bad, I just wanted to know if there were any tricks to improve it that I might be missing. Quote Link to comment Share on other sites More sharing options...
V. Barbarino Posted February 15 Report Share Posted February 15 DO you know your rating?How do I find that out? Good point. I have no reason to believe mine will be bad, I just wanted to know if there were any tricks to improve it that I might be missing.go to a bank, fill out an ap and they'll pull your credit... ask for a copy, so any broker you talk to, doesn't need to pull your credit again, just give them a copy...650 is considered the bottom if you are a new home owner... 500 if you were refinancing...things to ask about1. PMI, you can avoid this... DO NOT PAY PMI!!!2. Do you want to be escrowed in? i'd say yes if I were you, yea you'd pay interest on your taxes and insurance, butit's better than getting a bill for a few grand in nov... 3. broker fees? banks don't charge middle man fees, brokers do. 4. how long do u plan on living in the place you buy??less than 5 years, then you cold interest only and keep your payments super low. The national avg is 8.2 years...5. the first 20 years of a 30 year fixed is basicaly interest... look at a 20 or a 15 year aswell. This is what makes up your mortgate. M.I.C.E.MortgageIcomeCreditEquity..Now you don't have a equity or a mortgage, so it's down to your income and credit. Do you get a w2? if not then you are going to pay a lot more. Called "no doc"....I don't do new home mortgages, I only do subpime refis but i have friends in lauderdale that do, pm me if you want thier contact info...ps if a broker pulls your credit too often it can lower your score.. Quote Link to comment Share on other sites More sharing options...
tgibson Posted February 15 Author Report Share Posted February 15 DO you know your rating?How do I find that out? Good point. I have no reason to believe mine will be bad, I just wanted to know if there were any tricks to improve it that I might be missing.go to a bank, fill out an ap and they'll pull your credit... ask for a copy, so any broker you talk to, doesn't need to pull your credit again, just give them a copy...650 is considered the bottom if you are a new home owner... 500 if you were refinancing...things to ask about1. PMI, you can avoid this... DO NOT PAY PMI!!!2. Do you want to be escrowed in? i'd say yes if I were you, yea you'd pay interest on your taxes and insurance, butit's better than getting a bill for a few grand in nov... 3. broker fees? banks don't charge middle man fees, brokers do. 4. how long do u plan on living in the place you buy??less than 5 years, then you cold interest only and keep your payments super low. The national avg is 8.2 years...5. the first 20 years of a 30 year fixed is basicaly interest... look at a 20 or a 15 year aswell. This is what makes up your mortgate. M.I.C.E.MortgageIcomeCreditEquity..Now you don't have a equity or a mortgage, so it's down to your income and credit. Do you get a w2? if not then you are going to pay a lot more. Called "no doc"....I don't do new home mortgages, I only do subpime refis but i have friends in lauderdale that do, pm me if you want thier contact info...ps if a broker pulls your credit too often it can lower your score..This is what I needed to hear...thanks man.PMI is just the interest on any portion of the down payment you can't cover up front right? Aside from having the DP, how is this avoided? I'm pretty sure we're ok here...depending on where the offer goes.What does "escrowed in" mean in this context?Living under 5-years...just pay interest...I guess I never thought about that. As long as you think the market appreciates quicker than the interest rate, that makes sense. The 5-year mark is just a ballpark I guess.I'm good on the no-doc...how do they measure income - forward based on employer letters, or by past filings? What about the other deductions, like monthly payments - is it better to estimate this number as low (tight) as possible so that your overall discretionary cash is higher (hence greater ability to service payment)?Thanks again... Quote Link to comment Share on other sites More sharing options...
V. Barbarino Posted February 15 Report Share Posted February 15 DR = Debt to income ratio..Must be under 50%..This does not include water bill, electric bill etc, just Credit cards, cars laons etc...So if you make 2k a month, your debt can't be 1001 bucks..They take your last 3 years of bank statments, w2s pay stubbs... letters and such are nonsense.. PMI = private mortgage insurance. it insures the lender (the bank) if you default on the loan... to avoid it, you can get 2 mortgages..See if your loan to value is 100%, you have to have it. This means, Your house is worth 100k and you borrow 100k, ltv = 100%. You must dip your ltv under 80%. So you get two mortgages one for 50k and the next for 50k. Each loan is only ltv of 50% thus no PMI payments...Escrow= Taxes (propery taxes) Insurance (home owners, required)If you are escrowed, you pay these per month over the year.. If you are not escrowed in, you will pay your taxes and insurance at the end of the year, or in Novmenber. Which could be in the thousands.. So unless you can save all year and be smart, you'll get fucked come nov when your tax bill is 5000..How it works is this.Lets say your house is worth 100k, so you get 100k loan..The taxes come next year along with insurance will be 5000 dollars..When you are escowed in, your loan value will now be 105k... So now you make payments on that balance which now pays taxes every month. Basically the loan company takes a portion o of each of your payments and puts it into an escrowd account and they pay it for you at the end of the year.. it's basicaly a saftey net... nothing is estimated, you will have to proove everything...until you know your fico score, stop looking for a house, it's a waste of time until you know that number... Quote Link to comment Share on other sites More sharing options...
Guest slamminshaun Posted February 15 Report Share Posted February 15 Pretty good presentation Saleen, just wanted to correct a few things for our homebuyer.1. You don't pay interest on your taxes and insurance as you escrow them. The bank puts that in a separate non-interest bearing account for use down the road when your taxes and insurance are due.2. If you don't get a W-2, it doesn't necessarily mean you need a No Doc loan. Self-employed people don't receive W-2's, yet can do a Full Doc loan with their tax return. Same goes for people who are retired and only receive a 1099 for a Pension or receive Social Security (but this of course wouldn't apply to Tim).3. PMI can be avoided with LTV's higher then 80%. Ask your banker about options. It can be avoided without taking two mortgages, especially if you're a first time buyer.4. Debt ratio doesn't always need to be under 50%. It usually does, but with good credit, debt ratios of 60% are not uncommon. Quote Link to comment Share on other sites More sharing options...
tgibson Posted February 15 Author Report Share Posted February 15 Sleen and Slammer...thanks guys - very helpful.Escrow - got it. Just like an employer deducting taxes from a paycheck. Do they blend the escrow payments you are contributing into your overall payment amount? (i.e. you are giving them money to hold on to, do they pay you an interest rate on this that then gets blended against your payment?)Debt Ratio - I assume this is debt SERVICE you are talking about here? (making the ratio -> montly debt payments/monthly income) Quote Link to comment Share on other sites More sharing options...
Guest JMT Posted February 15 Report Share Posted February 15 damn, looks like everyone got it covered. i am a licensed broker but dont work in the industry now. i used to have a site for people where you could amortize and graph your potential mortgage online, i cant remember it offhand now but ill try to locate it... Quote Link to comment Share on other sites More sharing options...
LESjunkie Posted February 15 Report Share Posted February 15 It is threads like this one that sets the cj boards apart from all other nightlife/entertainment forums on the Internet (that I know of). Tim, does being Canadian affect or change any of these requirements, etc? Quote Link to comment Share on other sites More sharing options...
tgibson Posted February 15 Author Report Share Posted February 15 It is threads like this one that sets the cj boards apart from all other nightlife/entertainment forums on the Internet (that I know of). Tim, does being Canadian affect or change any of these requirements, etc? Yes, it means I am a trustworthy individual who is rather handsome and should receive a fantastic credit rating. Quote Link to comment Share on other sites More sharing options...
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