MsElui

we got a new mortgage a month ago - and had to write a letter to document every large sum of money into our bank account - as we had several large 'expense checks to cover our relocation costs' paid into the account. we had to show all the details of where we got the money. trying to prove we had money from a pending house sale in the UK was a nightmare as clearly the uk sale didnt have A signed contract or HUD type of document early in the sale process.


and i would add- it was nothing but stress trying to get a 'conditional offer' taken here in Dallas where the market is hot. if you can get the mortgage settled and can demonstrate the deposit sitting and waiting to go you will have a FAR easier time.

we had to do 3 years of tax returns, my husband had to do about 4 months of bank statements.

bewildering

We have just been through this process. The pre-approval is fast (within 3 days). And the pre-approval lasts for months.

You can shop around but all our rates and costs were much of a muchness. Our Realtor said as much. In the end we went with someone our realtor knew to keep the chain of communication smooth. If it matters to you ask if they are reselling or keeping your mortgage. I liked that our broker was not selling the mortgage to someone else.

They are very strict about were the money is coming from. To the extent of being annoying. This is due to the new rules after the NINJA loans...

Also, pre-approval means very little, they do a vey detailed analysis before doing your actual loan. This is were a lot of 'pending' transactions fail.

GeoffM

Thanks again. Those initial fees do worry us a bit. We're not going to have much of a deposit either, so any fees that we can't roll into the mortgage will have to be covered. My income is spotty - one month I'll earn enough in a week to cover the next three months; the following two months I'll earn not so much. I'm hoping the next week or two is the former

Just heard back from the advisor and he didn't seem too bothered by the foreign income. Just asked whether we pay taxes on it in the US (yes).

Also doesn't help that April will be an expensive month tax-wise (underpayment last year because we switched tax brackets, plus estimated quarterly due).

Timing is important as we want DS to finish his current school year at one school and start the next at the next school, rather than switching mid-term. Plus our minimum term house rental is up in June.

Pulaski

If you used a true "broker" (offering loans from several lenders in return for a commission), they almost certainly lied to you. And even if they were telling the truth there is nothing to stop them changing their mind tomorrow.

In a market where interest rates are destined to rise progressively it would be foolish for any lender to load up on fixed rate mortgages and NOT sell them because they will progressively lose value as interest rates rise.

Michael

There are also HUD 203k mortgages (rehabilitation loans) which can go to 110% including value plus repairs. Sometimes the market may be hot and then you are unlikely to be picked by the seller with a FHA loan if there are multiple offers with conventional mortgages. However with a 403b mortgage, you can look for a house that needs some work and many times the multiple bidders are staying away since the house may not appear to be appealing.

However there are certain restrictions when using a 203k mortgage.

http://portal.hud.gov/hudportal/HUD?.../203k/203kabou

Since you are always at home during the day, with a 203k mortgage you can monitor the contractor's work without losing much of your work schedule.

Weeze

I'm sure the husband will be along soon, but for us Wells Fargo was dreadful. We were getting info from both Wells Fargo and an independant consultant. We had bought our house using the other guy before Wells Fargo managed to deal with our application correctly.

GeoffM

I forgot to ask about improvements. I haven't quite worked out whether the 203k can include unnecessary repairs - simply because you don't like the decor rather than it's actually falling apart. Kitchen being the main bugbear I have with local houses (tiled worktops and crappy wooden cabinets).

I don't think the market is moving much. Most of the houses we've been watching over the last couple of months are still on the market. Only a few new ones each week in our filter (which might not be a good thing for buyers). Worryingly one I particularly liked the look of, and which has been on the market since October, has gone up by 39% overnight which seems rather odd - a mistake, I hope.

Michael

There is at least one person on BE that did a 203k mortgage. Hopefully he'll post or you can search the forum for 203k and hopefully he doesn't have his email disabled and you can send him an email to understand what is allowed.

Sally Redux

i would say shop around. Wells Fargo is our bank, and they were not at all competitive when I asked about remortgaging a while back.

Something that comes up that I didn't realize when we bought, is that the method of construction here means the houses need a lot of upkeep and have a limited life. Hard to make any money on the deal when you sell, with seller's closing costs at 7% plus.

Michael

But you bought during early part of the worst housing market crash in the history of the US.

Sally Redux

Yeah that probably didn't help

Michael

But you are probably fairly close to break even right now. LA has recovered to near it's old high but the surrounding areas (San Bernardino County, Ventura County, and Victorville {where Geoff is planning to move}) have barely started their recovery.

RICH

I almost went 203k about 5 years ago.In the end, the restrictions were too great, and the scope of work needed was too small. The cost of adding the minor needed work to a 30 year loan wasn't viable.

I don't think "re-decorating" is include-able - it was more about bringing the property up to liveable standards. New roof, fitted kitchen, re- wiring etc.

Michael

I think you are right. However when a foreclosure occurs, sometimes the previous owners take everything including the kitchen cabinets so in that case, I suspect new appliances and kitchen cabinets would be allowed.

RICH

That's what I meant. My house had a kitchen sink, but nothing else. The fitted kitchen was allowable, but the cost wasn't viable when added onto the mortgage. Better to put it on the credit card for a couple of years.