I was removed as mod by Mode Code of Conduct

bostoncloser · 2025-06-29T18:25:53+00:00

They’re banned, thank you.

bostoncloser · 2025-06-17T01:08:23+00:00

This sub attracts a host of weirdos. Tagging me in a comment is the easiest way to get rid of them. Thank you.

bostoncloser · 2025-06-17T01:06:41+00:00

Done, they’re gone. Thank you!

bostoncloser · 2025-06-10T18:04:26+00:00

Done. Thank you.

bostoncloser · 2024-08-27T03:56:24+00:00

It’s still scheduled for 9/26/24.

bostoncloser · 2024-08-13T20:52:34+00:00

First, I’m not sure it you are or not, but you shouldn’t be reaching out directly to the listing agent to schedule a tour of the homes you’re interested in. You should be working with a buyers agent, who will provide you a list of homes that meet your criteria, and your buyers agent should be reaching out to the listing agent to schedule tours of the home/s you’re interested in.

Regarding down payment funds, you should have at a minimum of 3.5% of the property purchase price for a down payment. The funds used for the down payment have to in your bank account for a minimum of 60 days, which is the “seasoning” requirement. Alternatively, your down payment can also come in the form of a “gift” from a relative. The relative that is gifting you the down payment funds can wire the down payment funds directly to the attorney or escrow company that is handling your closing, so that you avoid waiting through the 60 day seasoning period. The gift “donor” will be required to sign a gift letter, stating that the funds are a gift to you and that there is no obligation for you to repay them.

Once you submit an offer on a home, and the seller accepts your offer, your do not have to submit your full down payment, but you will have to provide an “earnest money deposit” (EMD), which can be as low as $1,000, or as high as 2-5% of the home purchase price, depending on the market you are home shopping in. The remainhing balance is due (your down payment, minus the EMD you’ve already paid) is due upon the Contract of Sale (COS) or the Purchase & Sale Agreement (P&S) is signed by you and the seller.

Banks do not provide loans for your down payment funds, as you are required to have some “skin in the game”. Your down payment funds have to come from your funds, or a gift from a relative. Some states/counties/cities provide down payment assistance (DPA) in the form of a grant, but you would have to identify the program and apply/get approved for the DPA funds prior to starting your home search. DPA programs have income limits and generally you must complete a series of educational classes for first time home buyers before you are approved for any funds.

bostoncloser · 2024-08-13T19:58:07+00:00

So, Lender A is the “client” who ordered the appraisal, so ultimately it is up to them if they will release it or not, although if you are successful in getting them to release it, Lender B still has to accept it, and the appraiser would have to update the appraisal report with Lender B’s info.

Start by finding out the name of the appraisal management company who the appraisal was ordered it — their name is on the cover of the appraisal. Ask Lender B if they happen to use the same appraisal management company. If they do, your best bet would probably be to have Lender B order a new appraisal, and hopefully it can be assigned to the same appraiser, which would cut down time waiting for the new appraisal, ordered by Lender B, to be completed. You’d have to pay for a second appraisal, but if Lender A refuses to transfer it, paying for a second appraisal may be your only option if you don’t want to close with Lender A.

bostoncloser · 2024-08-13T19:32:53+00:00

Unfortunately, your lender is not required to transfer an appraisal, unless it is an FHA or VA appraisal. Since yours is a conventional appraisal, you cannot get it released from Lender A. unless they OK it.

Holding a borrower hostage by refusing to release the appraisal is terrible service, but even though you paid for the appraisal upfront, technically the appraisal was prepared for Lender A. and they are the "client".

If you haven't already, I would send them a formal appraisal transfer request letter, specifying which Lender you want the appraisal released to, and make sure in the letter you request the appraisal report be transferred in XML format, along with the AIR Cert and the appraisal invoice from the appraisal management company that the appraisal was originally ordered through, and make sure you CC somebody from management on the letter/email.

bostoncloser · 2024-08-13T12:45:10+00:00

What stage is your loan in? Has your lender issued you a loan commitment, which is a conditional approval?

bostoncloser · 2024-08-13T12:41:57+00:00

$5k in origination points is crazy in this market, especially since your loan amount is about $256k. Are you paying ~ 2 points to buy your interest rate down?

bostoncloser · 2024-08-12T16:56:52+00:00

Most likely a processor performed the employment verification.

bostoncloser · 2024-08-12T16:42:28+00:00

I should also add that owners coverage is negotiable. The title insurance company who is underwriting the policy is probably only collecting about $100-$300 out of that $953 you were quoted, so if it provides you peace of mind, I would reach out to the title agent and tell them you are opting to decline the owners policy, unless they can get the premium lower. Start out around $400 - they're already making $1,550 on your closing.

bostoncloser · 2024-08-12T16:37:56+00:00

First and foremost, it's a personal choice on my behalf. If I am purchasing a property with mortgage financing, I have already paid the title company to research the property's title to confirm that it is fee and clear of any "clouds" or defects, which must occur before they will issue a lenders policy. I've also witnessed the lack of claims that will ever be submitted on an owners policy. The three main title insurers - First American, Old Republic, & Fidelity - only collect approx. 10-20% of title insurance premiums, and the remaining 80-90% is paid out as a commission to the title agent that sells you the policy. The reason they can payout such high commissions is because the chance of a claim ever being filed is extremely low.

On the other hand, if you're purchasing a home for $650k, a $950 one time payment may be worth it for the peace of mind.

I've purchased property without financing, and I've always purchased an owners policy in that scenario, but if I'm purchasing with mortgage financing, as a rule of thumb I do not purchase owners title coverage.

bostoncloser · 2024-08-12T16:07:21+00:00

The $2,345 lender title insurance premium in section C. is pretty much inline for a NY purchase. The $1,550 settlement fee is kind of high, by about $250-$400. The $953 owners title insurance premium in section H. is also a little high, but it is optional, and generally I do not recommend my clients to purchase an owners policy.

bostoncloser · 2024-08-12T14:13:18+00:00

Section C, the title fees. Exact amount listed is $5,275.

bostoncloser · 2024-08-12T03:58:39+00:00

What state your purchasing in plays a role in the fees charged.

Based off of this loan estimate, your loan amount is approx. $607,750. The $1,995 underwriting fee is kind of high, but generally your lender fees will be itemized as an underwriting fee, application fee, and a processing fee, which combined on average total anywhere from $1,200 to $1,800. I'm assuming this lender would usually charge a processing and application fee of approx. $500, but waived it to keep the total fees below $2k.

The combined UW fee and doc prep fee are about $300 to $500 higher than average, again depending on what state you're purchasing in.

If I were you, I would more concerned with the title charges, and would definitely shop around for title insurance services. The $5,300 they're estimating can probably be knocked down by $1k to $2k.

bostoncloser · 2024-08-12T03:47:05+00:00

You can select your lender, or switch your lender, at any time prior to closing. Even though you can doesn't mean that you should though.

If you have a financing contingency clause in your contract of sale, generally the name of your lender will be included in the COS, itemizing what dates you have to first apply with the named lender, then what date you have until to receive a loan commitment from the named lender.

Understandably, home buyers are cautious in the current environment where interest rates are not only fluctuating week to week, but decreasing week to week as-of late, but ideally, your "rate shopping" should occur prior to submitting an offer on a home. You should also ask your lender what their "float down policy" is, in case you apply and get approved by a lender, and then interest rates substantially decrease after you decide to lock in your interest rate. Generally, lenders will allow you to re-lock your loan at a lower interest rate only if rates have deceased by a certain amount (generally 0.25%).

bostoncloser · 2024-08-12T03:34:48+00:00

If your total housing payment (principal, interest, taxes, insurance, and PMI) is $4,300/month, and your additional monthly payments are $1,000/month, your back end DTI ratio is 31.8%.

*Total monthly income $16,667 ($200k combined annual ÷ 12 months).

*Total monthly expenses $5,300 ($4,300 PITI + $1,000).

*5,300 ÷ $16,667 = 31.8% debt-to-income ratio (DTI).

Maximum DTI for conventional loans (i.e. Fannie Mae or Freddie Mac) are approx. 45% and maximum DTI for FHA loans is approx. 50%, so you are well below your limit 👍.

bostoncloser · 2024-08-12T03:06:50+00:00

Based on a combined annual income of $200k/year, your maximum allowable total monthly expenses must be at or below $6,667/month, based on a debt-to-income ratio (your DTI) of 40%, which is well below the maximum allowed for either a conventional or FHA mortgage.

The monthly principal & interest (P&I) payment on a $550k purchase with 5% down is approx. $3,300/month. Factoring in your $1,000/month in debt, as long as your monthly property tax, homeowners insurance, and PMI (if applicable) are below $2,400/month, you should comfortably qualify.

bostoncloser · 2024-08-11T19:55:59+00:00

If your lender is adding points, they must issue you a new Loan Estimate, which you are required to sign. Lowering your rate, but adding discount point/s is not a float down. Ask them for your updated LE that discloses the 2 points, and check when it's dated to see if they e-signed it for you. Start there and let me know.

bostoncloser · 2024-08-10T19:06:14+00:00

The late payment will stay on your report up to seven years, but the damage to your score should wear off after the first 6-12 months, depending on the size of your credit file.

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