I am only six months post discharge but have decided to get into the house buying garbage despite this. My sister has finally gotten rid of her druggie/alcoholic husband and is now a single mom, unable to afford somewhere to live and support herself and her son at the same time.
So I went to some lenders for information. I was quoted a wide range of terms with payments on a 75K loan from 660 down to 615 per month. I am choosing the 660 payment. The lender who had the lowest payment didn't tell me until the day I submitted an offer on a house that I was only prequalified, not preapproved even though they pulled my credit report. This bugged me a lot. another lender has only responded to me once and never called back when he said he would so I wrote him off (too bad... he was really good looking
). I have decided to go with my offer from Sibcy Cline's specialty lending department. Everything has already been through an underwriter with SC so I know that what they told me I could borrow would actually be able to finance with them.
The terms are 10.5% (up from where they would have been last month thanks to Ohio's new lending laws) on a 30 year fixed, 50 year amoritization. This way my payments are always the same and I will either have re-fied or sold the home LONG before the balloon would hit. I need to have seller paid closing costs of 6% which includes an unknown number of points and the actual closing costs.
So I went hunting. I was refferred to my agent through a coworker and really liked him after I met him. He tells me what he thinks straight up. I really appreciate this since he'll do it even if I don't like what he's telling me. I've looked at 29 or 30 houses. A couple I liked and would have worked and a couple were in an area my parents didn't really like but I did. The one that I put an offer on (story about this in a minute) is about 35 minutes north in an area that I wasn't really looking in. This house popped up on a day that my agent and I were going out and had no pictures or room dimensions but he wanted to take me to see it based upon the description. I said sure, what the hell. It was described as being totally updated from roof, to floors, to kitchen cabinets and bathrooms. All for only $74,900.
It turned out to be a nice little brick ranch on a very busy street, very nicely updated, underpriced, with a HUGE back yard for my nephew to play in away from the busy road. So I put an offer on it that day. So now the story of trying to buy this house begins. My offer got in to the selling agent around 6pm. I offered 77K so that the seller only pays about half the closing and the other half would get wrapped into my loan. At 9pm I get a call from my agent saying that the other agent called him to say that a second offer had just come in. Ok, I'd know by noon the next day one way or the other because that's how we wrote it into the contract. Well, the next morning we were told that the seller was going with the other offer.
Making a really long story short here...
The seller is going through a divorce and needed to get rid of the house quickly. He had owned it and used it as a rental property since 1985. We ammended my offer to become the first backup and promptly forgot about this house and began looking at more. Two days ago my agent called me to say that the seller himself called about my offer. He's sick of being jerked around by the other buyers and wanted to get out of that contract and accept mine. Yesterday we found out that the seller has until tomorrow per the contract to secure financing before the seller can get out of the contract and accept mine.
Here are some tidbits we found out along the way about the other agent and the sellers:
The other agent waited to write the other offer until after mine came in. He became a dual agent in this instance and so was able to see my offer and write a better one.
The selling agent and the buyer were college roommates.
The other buyers submitted a preapproval letter with their offer but have been unble to secure financing at three different lenders so far.
The seller, after hearing why I was buying a house, really wishes that he had chosen my offer to begin with.
I'll know tomorrow if my offer becomes the active purchase contract or if the other buyer managed to somehow get financing. I'll post an update tomorrow or Friday.
So I went to some lenders for information. I was quoted a wide range of terms with payments on a 75K loan from 660 down to 615 per month. I am choosing the 660 payment. The lender who had the lowest payment didn't tell me until the day I submitted an offer on a house that I was only prequalified, not preapproved even though they pulled my credit report. This bugged me a lot. another lender has only responded to me once and never called back when he said he would so I wrote him off (too bad... he was really good looking
). I have decided to go with my offer from Sibcy Cline's specialty lending department. Everything has already been through an underwriter with SC so I know that what they told me I could borrow would actually be able to finance with them.The terms are 10.5% (up from where they would have been last month thanks to Ohio's new lending laws) on a 30 year fixed, 50 year amoritization. This way my payments are always the same and I will either have re-fied or sold the home LONG before the balloon would hit. I need to have seller paid closing costs of 6% which includes an unknown number of points and the actual closing costs.
So I went hunting. I was refferred to my agent through a coworker and really liked him after I met him. He tells me what he thinks straight up. I really appreciate this since he'll do it even if I don't like what he's telling me. I've looked at 29 or 30 houses. A couple I liked and would have worked and a couple were in an area my parents didn't really like but I did. The one that I put an offer on (story about this in a minute) is about 35 minutes north in an area that I wasn't really looking in. This house popped up on a day that my agent and I were going out and had no pictures or room dimensions but he wanted to take me to see it based upon the description. I said sure, what the hell. It was described as being totally updated from roof, to floors, to kitchen cabinets and bathrooms. All for only $74,900.
It turned out to be a nice little brick ranch on a very busy street, very nicely updated, underpriced, with a HUGE back yard for my nephew to play in away from the busy road. So I put an offer on it that day. So now the story of trying to buy this house begins. My offer got in to the selling agent around 6pm. I offered 77K so that the seller only pays about half the closing and the other half would get wrapped into my loan. At 9pm I get a call from my agent saying that the other agent called him to say that a second offer had just come in. Ok, I'd know by noon the next day one way or the other because that's how we wrote it into the contract. Well, the next morning we were told that the seller was going with the other offer.
Making a really long story short here...
The seller is going through a divorce and needed to get rid of the house quickly. He had owned it and used it as a rental property since 1985. We ammended my offer to become the first backup and promptly forgot about this house and began looking at more. Two days ago my agent called me to say that the seller himself called about my offer. He's sick of being jerked around by the other buyers and wanted to get out of that contract and accept mine. Yesterday we found out that the seller has until tomorrow per the contract to secure financing before the seller can get out of the contract and accept mine.
Here are some tidbits we found out along the way about the other agent and the sellers:
The other agent waited to write the other offer until after mine came in. He became a dual agent in this instance and so was able to see my offer and write a better one.
The selling agent and the buyer were college roommates.
The other buyers submitted a preapproval letter with their offer but have been unble to secure financing at three different lenders so far.
The seller, after hearing why I was buying a house, really wishes that he had chosen my offer to begin with.
I'll know tomorrow if my offer becomes the active purchase contract or if the other buyer managed to somehow get financing. I'll post an update tomorrow or Friday.
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