Mortgage approval; what to expect?
#1
Forum Regular
Thread Starter
Joined: May 2013
Posts: 86
Mortgage approval; what to expect?
I've had a look at wikis and searched the forum some, but didn't see info about this specific issue...
I'm a USC who has maintained a couple of credit cards in the US over the past few years. My husband is green card holder and he's the one with a job lined up for the moment; I probably won't be working for another year since my job is in the public schools. He of course has no US credit history.
We'll be renting for the first few months but would like to buy a house not long after. However I've seen on other forums that even people with our profile (ie one spouse who's a USC, has good credit, and there's a solid down payment to be made) have found it nearly impossible to get approved for a mortgage with a competitive rate (between 3.5 and 4%). Have others here also found this to be the case? If so, are there any pointers (for ex, banks that are more open to buyers in our situation)?
I do still have accounts with the teacher's credit union. Also here in the UK when we bought our house we had a mortgage advisor who shopped around different rates from many different banks...is there any equivalent to that in the US or do you do your research yourself?
I'm a USC who has maintained a couple of credit cards in the US over the past few years. My husband is green card holder and he's the one with a job lined up for the moment; I probably won't be working for another year since my job is in the public schools. He of course has no US credit history.
We'll be renting for the first few months but would like to buy a house not long after. However I've seen on other forums that even people with our profile (ie one spouse who's a USC, has good credit, and there's a solid down payment to be made) have found it nearly impossible to get approved for a mortgage with a competitive rate (between 3.5 and 4%). Have others here also found this to be the case? If so, are there any pointers (for ex, banks that are more open to buyers in our situation)?
I do still have accounts with the teacher's credit union. Also here in the UK when we bought our house we had a mortgage advisor who shopped around different rates from many different banks...is there any equivalent to that in the US or do you do your research yourself?
#2
Re: Mortgage approval; what to expect?
I do still have accounts with the teacher's credit union. Also here in the UK when we bought our house we had a mortgage advisor who shopped around different rates from many different banks...is there any equivalent to that in the US or do you do your research yourself?
ETA, our broker mentioned that he'd recently closed a mortgage for another Brit ex-pat who was pretty much fresh off the boat and had no US credit history at all. This person was working for the Mountain View Chocolate Factory[1] in NYC so was probably making $$$. It is doable though.
[1] Google
Last edited by rpjs; Sep 10th 2014 at 1:29 pm.
#3
Banned
Joined: Apr 2013
Posts: 5,154
Re: Mortgage approval; what to expect?
What's your rate out of interest? We have been offered:
30 yr fixed
4.25% no points
10 /1 arm
3.875% no points
Rates stays fixed for 10 yrs at start rate. It can adjust yearly thereafter. There are caps to prevent the rate from going too high or low
The future rate adjustments are tied to a 1 yr libor plus a margin of 2.25%
7/1 arm
3.5% no points
Rate stays fixed for 7 years at start rate. I can adjust yearly thereafter. There are caps to prevent the rate from going too high or low.
The future rate adjustments are tied to a 1 yr libor plus a margin of 2.25%
Thoughts?
30 yr fixed
4.25% no points
10 /1 arm
3.875% no points
Rates stays fixed for 10 yrs at start rate. It can adjust yearly thereafter. There are caps to prevent the rate from going too high or low
The future rate adjustments are tied to a 1 yr libor plus a margin of 2.25%
7/1 arm
3.5% no points
Rate stays fixed for 7 years at start rate. I can adjust yearly thereafter. There are caps to prevent the rate from going too high or low.
The future rate adjustments are tied to a 1 yr libor plus a margin of 2.25%
Thoughts?
#4
Re: Mortgage approval; what to expect?
What are the relative closing costs, how long do you expect to stay in the house, and do you plan on paying anything off early?
#5
Banned
Joined: Apr 2013
Posts: 5,154
Re: Mortgage approval; what to expect?
We're putting down $99k, the 'cash to close' required is $108.5k across all three (few hundred diff between them). The closing cash includes property taxes as well i believe.
We'd expect to stay in the home around 10 years. Unsure whether we would be in a financial position to pay it off early, but I would like to overpay on bonus months.
Thanks!
#6
Re: Mortgage approval; what to expect?
I am not a mortgage expert, but I work with lots of mortgages after the fact, and I would say that right now almost nobody (USC, expat, hybrid) will get less than 4% on a 30 year fixed.
The figures Hungry Horace mentioned look realistic, based on what I see closing on a daily basis.
The figures Hungry Horace mentioned look realistic, based on what I see closing on a daily basis.
#7
Re: Mortgage approval; what to expect?
We refinanced two years after buying our house, and got a much lower rate at that point. Worth considering?
#9
Banned
Joined: Apr 2013
Posts: 5,154
Re: Mortgage approval; what to expect?
I am not a mortgage expert, but I work with lots of mortgages after the fact, and I would say that right now almost nobody (USC, expat, hybrid) will get less than 4% on a 30 year fixed.
The figures Hungry Horace mentioned look realistic, based on what I see closing on a daily basis.
The figures Hungry Horace mentioned look realistic, based on what I see closing on a daily basis.
#11
Re: Mortgage approval; what to expect?
Hi -
We're putting down $99k, the 'cash to close' required is $108.5k across all three (few hundred diff between them). The closing cash includes property taxes as well i believe.
We'd expect to stay in the home around 10 years. Unsure whether we would be in a financial position to pay it off early, but I would like to overpay on bonus months.
Thanks!
We're putting down $99k, the 'cash to close' required is $108.5k across all three (few hundred diff between them). The closing cash includes property taxes as well i believe.
We'd expect to stay in the home around 10 years. Unsure whether we would be in a financial position to pay it off early, but I would like to overpay on bonus months.
Thanks!
We're lucky...we came to a cheap state at a cheap time, and don't have mortgages, but if I did, I think I would be taking the cheapest rate on the 7 year arm and setting the autopay to pay it as if I'd taken the 30 year fixed. Then keep an eye on rates with a view to refinancing halfway through it with a better/longer credit history, higher salary and hopefully a better loan to value ratio.
#12
Re: Mortgage approval; what to expect?
I guess it depends if you feel lucky.....nobody can predict the interest rates 10 years out, so what value do you put on sleeping easy? 3/8%? 3/4? ARMs aren't flavor of the month round here, because so many got stuck with massive balloons, but let's face it, any of those options are probably giving you a longer fix than you could get in the UK ( may be talking out of my arris there.....not looked at UK mortgages since the late 80s)
We're lucky...we came to a cheap state at a cheap time, and don't have mortgages, but if I did, I think I would be taking the cheapest rate on the 7 year arm and setting the autopay to pay it as if I'd taken the 30 year fixed. Then keep an eye on rates with a view to refinancing halfway through it with a better/longer credit history, higher salary and hopefully a better loan to value ratio.
We're lucky...we came to a cheap state at a cheap time, and don't have mortgages, but if I did, I think I would be taking the cheapest rate on the 7 year arm and setting the autopay to pay it as if I'd taken the 30 year fixed. Then keep an eye on rates with a view to refinancing halfway through it with a better/longer credit history, higher salary and hopefully a better loan to value ratio.
Primary Mortgage Market Survey Archives - 30 Year Fixed Rate Mortgages - Freddie Mac
#13
Forum Regular
Joined: Jul 2010
Posts: 38
Re: Mortgage approval; what to expect?
I'm "straight off the boat" and just closed on 30 year fixed for 10 years at 3.5% with 20% down.
#14
Re: Mortgage approval; what to expect?
ARMs have never been popular in the US with at best 10% share of the market. Although it may be a while for the world economy to recover but when it does, 30 years fixed mortgage interest rates typically have been in the 6%-8% range.
Primary Mortgage Market Survey Archives - 30 Year Fixed Rate Mortgages - Freddie Mac
Primary Mortgage Market Survey Archives - 30 Year Fixed Rate Mortgages - Freddie Mac
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