We were discharged on 2/14 and closed on 2/20. A few days after discharge, the lender who we've been working with pulled our credit report and had disappointing news that my husbands mid-score was 571. The lender tried to get underwriting to make an exceptance on 9 pts, but they wouldn't.
I subscribe to True Credit, so the next day, I looked at the scores and the high score went up 33 pts. in 24 hrs. Our lender was shocked and she pulled the report again. This time getting a 611 mid-score. So we were good to go with pursuing a mortgage. Internally, they declined us, and 1 of the 3 outside companies accepted us, 'Option One' (subsiderary of HR Block).
On a $259,950 mortgage (2400 sq. ft. & brand new/older homes are more $ around here)...which $4950 of that is included closing costs (home is $255K), Option One is offering 8.7% fixed for 30 yrs. and 13.6% on the 2nd loan. No pre-payment penalty on the 2nd loan. We CAN refinance in 2 yrs. and roll it into one loan and our lender said that accepting the 30 yr. fixed mortgage is better than the 80/20 ARM loan (would only save us $60/mo) because who knows where the rates will be in 2 yrs.
We are paying $1450/mo. in rent and our landlord will be selling soon. So by renting another place, we'd be looking at around $1600/mo. Rent is sky-rocketing around here.
Our monthly mortgage would be about $2500/mo. w/ the Option One loan for the 1st two years. It is within our budget. Plus, it will be nice to get money back at the end of the year (tax guy thought well over $5000 in a refund) vs. having to pay in since we are renters (and yes, we'll be paying this year).
One of the perks with this house is that is appraises at over $265K and we got a bargain deal because my parents bought the same house. Anyone else is paying $270K, which we both got for $255K. So it helps!
Hopefully someone has good info to share about Option One. We have not seeked out any other lenders. Should we? Don't want to drag the scores down!
Thanks!
********SEE MY UPDATE---LENDER CAN STICK IT WHERE THE...........!!!!!!!!!!!!!
I subscribe to True Credit, so the next day, I looked at the scores and the high score went up 33 pts. in 24 hrs. Our lender was shocked and she pulled the report again. This time getting a 611 mid-score. So we were good to go with pursuing a mortgage. Internally, they declined us, and 1 of the 3 outside companies accepted us, 'Option One' (subsiderary of HR Block).
On a $259,950 mortgage (2400 sq. ft. & brand new/older homes are more $ around here)...which $4950 of that is included closing costs (home is $255K), Option One is offering 8.7% fixed for 30 yrs. and 13.6% on the 2nd loan. No pre-payment penalty on the 2nd loan. We CAN refinance in 2 yrs. and roll it into one loan and our lender said that accepting the 30 yr. fixed mortgage is better than the 80/20 ARM loan (would only save us $60/mo) because who knows where the rates will be in 2 yrs.
We are paying $1450/mo. in rent and our landlord will be selling soon. So by renting another place, we'd be looking at around $1600/mo. Rent is sky-rocketing around here.
Our monthly mortgage would be about $2500/mo. w/ the Option One loan for the 1st two years. It is within our budget. Plus, it will be nice to get money back at the end of the year (tax guy thought well over $5000 in a refund) vs. having to pay in since we are renters (and yes, we'll be paying this year).
One of the perks with this house is that is appraises at over $265K and we got a bargain deal because my parents bought the same house. Anyone else is paying $270K, which we both got for $255K. So it helps!
Hopefully someone has good info to share about Option One. We have not seeked out any other lenders. Should we? Don't want to drag the scores down!
Thanks!
********SEE MY UPDATE---LENDER CAN STICK IT WHERE THE...........!!!!!!!!!!!!!
Comment