Michael

But $40,000 over 30 years at 4.5% only increases your monthly payment by $200 and that can be used as a deduction against income. Trying to make credit card payments on $40,000 at a much higher interest rate is near impossible.

You are in Florida so we are talking about vast differences in prices for houses in California so $40,000 for a new kitchen would probably not be considered unreasonable.

RICH

$40k practically bought my house

Michael

Bluegrass Lass

Just goes to show that costs for things out in CA are unreasonably high. We could have put a brand new kitchen in our home in KY for under $10k - and that's with hiring a contractor to do a good portion of it.

Pulaski

I betcha could buy a habitable house for $40,000 too, you certainly can here. It wouldn't be modern, it wouldn't be a trailer, or even a doublewide, and it would need some work, but it would certainly get a roof over your head.

Bink

On the paper trail, I had to provide UK bank statements, transfer documents and US bank statements as well as documentation showing the original source of the income. Bit of a hassle, but not too bad. If the money has all been earned in the US you'll be fine.

My mortgage is with WF, but I got my mortgage through my builder's lender (competitive rates and closing costs covered) and it got sold to WF before I'd paid my first note...!
I've heard that they're a pain to deal with to get the mortgage (especially first time buyer or overseas) but I have only good things to say about actually dealing with them having the mortgage with them.

MarylandNed

That's the point of shopping around. I've used a mortgage broker 3 times now...one for the original mortgage and then a different one who handled the 2 refis. They got me the best rates. The funny thing is that the original mortgage and the first refi were later sold to Wells Fargo...who were quoting me higher rates!

Pulaski

After the $4!t storm over the past five years that the banks have had to deal with over badly documented mortgages, I think you'll find that all mortgage providers are going to be super persnickety over documentation. Quite frankly, I'd be concerned if I found myself dealing with one that isn't making sure that the documents are completely bolted down tight.

Pulaski

It was only the servicing that was sold to Wells Fargo, the loan belongs to someone else that you will probably never know. Over the past five years, something like 96% have been sold to Fannie Mae or Freddie Mac, but further back, an investment bank would probably be the buyer, and the loans were used as security for mortgage backed bonds.

A few years ago I tried to take advantage of the super low rates to do one of those "easy refi" deals the government was pushing, except that my mortgage belonged to an investor who wouldn't play ball.

Michael

And then Fannie and Freddy create mortgage backed securities out of about 95% of the mortgages they purchase.

Pulaski

They do, that's how they get more money to buy more mortgages! .... That still doesn't affect the "serving rights" though.

GeoffM

Ok, so to the mortgager payer, what difference does it make as to who owns the mortgage (owns, as in bank/Fannie/Freddy/whatever)? Asking out of a lack of knowledge rather than arguing.

Might have to reconsider the "buy crap, do it up" method, at least raise the standards a bit to one that is "perfectly livable but not entirely to my taste".

It is surprising how different the process is to the UK. Over here the seller seems to choose the buyer not just based on the highest offer but the method of payment too.

Thanks again.

Michael

None other than you may have to send your monthly payment to a different processor.
A FHA mortgage has a greater potential of not being approved (buyer may not be able to come up with the down payment and/or closing costs), a 10% conventional loan is a little better, but if someone offers 50% cash, the deal is almost sealed once the offer is accepted. So the seller is just trying to make sure that closing doesn't fall apart.

GeoffM

Yes, the point being that in the UK it doesn't seem to be as much of a hot topic - though it ought to be.

I thought prequal was a relatively firm commitment, subject to nothing undisclosed, skeletons in the closet, unsatisfactory home inspection, big change in buyer finances between prequal and closing etc. Seems they're rather less meaningful than I thought.

How much do people tend to offer here, let's say for a house that's been on the market for a month or two, seems to be priced about right, no bidding war, and the market is relatively equal between buyers and sellers? Generally in the UK a buyer would knock maybe 10-15% off the asking price and start from there. I get the feeling the starting offer is closer to the asking price here...?

Giantaxe

It made a difference post the crash as to who could get their loan renegotiated etc. But generally, I agree.

Absolutely. This is one of the things I like about the US system: you get to know much more about the buyer's likelihood of being able to close the purchase. In the UK, you're essentially blind. For example, the last time I sold a property I didn't choose the highest bidder because I realized that the financing they were proposing to come with was marginal, at best.