F/S 05 Red Brawn CC SE....Maybe - Page 2

buzzkillwill · 04-19-2005, 09:01 AM

Normally you can get a home equity loan, or line of credit (LOC), but you ahve to have equity in the house to do either of those. And since you're just buying the house, that may be difficult. Usually it takes a few years to build up equity and establish a payment history.

IMO, I would get pre-approved for a home loan. There are tons of different programs out there especially for first time home buyers. Shop around-interest rates are on the rise, so hurry. Lock in the loan rate fast.

Look at it this way-say this time around you can only afford 150K (just an example number) for a house. Buy that house, live in it for a three to five years, by then, it will be worth probably clsoe to 200K. ( 8% increase over 4 years on 150K =48K)You sell that house, and move up to something bigger-leverage up!

Either way, you can go wrong buying a house and you can go wrong keeping the Titan!

i'm sure a lot of people here are homeowners, so if you have any questions, ask, I'm sure you'll get answers!

Good luck and let us know how it goes...

kvoman · 04-19-2005, 02:22 PM

Another alternative is an interest only loan for the house. The local stations did a story last night on interest only loans and how a lot of people here in CA are going that route. It reported that over 60% of home loans here in CA are interest only!!!

You could get two combined loans (mortage loan of 80% and a HELOC of 20%-Home Equity Line of Credit), three loans (mortage loan of 80%, a HELOC of 15%, and a third 5%) If you have a retirement account (IRA or 401k, 457k, etc.) you could borrow against as a down payment as well, if this is your first house purchase (you have not been on title in the last 3 years, according to IRS)!!!

Lots of financing options, talk to a few local loan brokers to see what they can do for you. Basically, you only want the mortgage to be 80% so you don't have to pay PMI (Private Mortgage Insurance).

SickWhip · 04-20-2005, 04:35 PM

I'm started working with someone at CountyWide today. Anyone have any experience with them?

docopharm · 04-20-2005, 06:49 PM

I had my mortgage with them b4 I refi'd. Good to work with, but rates are typically higher than others. Also check bankrate.com - lots of good info there. I found a brokerage that refi'd my original Countrywide loan for 4.25% (this was a year or so ago). At the time, Countrywide was a percentage point or more higher.

Clint · 04-20-2005, 08:03 PM

I've been with them for 11 years now including 2 refi's. Never had any problems, and the rates were fine. I'm at 5 1/8 % now but that was 2 1/2 years ago. Most likely you'll come out on the losing end trying to sell the truck now, so better off keeping it. Good luck.

Clint

scotty · 04-21-2005, 08:05 AM

you will definitely lose $ if selling now. By me a high priced dealership is quoting me almost 1800 UNDER invoice wit the rebate for 05's. A 2wd SE crew can be had new for a great deal...

kvoman · 04-21-2005, 10:27 AM

Countrywide is good, I had two loans with them. Check with a couple brokers also for other lenders, I heard Bank of America has a special program with fixed HELOC now, in addition to their normal mortgage program, check them out if you have some time.

SickWhip · 04-21-2005, 05:26 PM

whats HELCO?

Clint · 04-21-2005, 06:51 PM

HELOC= home equity line of credit.

Clint

SickWhip · 04-22-2005, 07:44 AM

This is my first home so have no equity. Plus I'm getting married and going on a honeymoon, so not much down either. The the HELCO thing probably won't work for me, right?

Davo · 04-22-2005, 03:18 PM

I'm a Realtor up here in TN and you have got tons of options. If you have good credit you should be able to get a 100% loan easily. If you are planning on staying in the home for a while you can add the closing costs into your loan and get the seller to sign up for one of the many down payment assistance programs (Neighborhood Gold, Ameridream, etc.) The main thing is that the home must appraise. This way you get into the home with no money out of pocket. Of course you will have to pay for the appraisal and credit report on the front end but you will receive that back at the closing.

A lot of this will depend on the type of loan you are getting, conventional, VA, FHA. If you have an agent that is worth anything they should know about these programs. Your lender definitely will. Also, the higher your credit score the higher debt to income ratios they can use. I've seen people with a 50% ration get a home so don't go selling the truck just yet.

Good luck.

SickWhip · 04-23-2005, 10:11 AM

I havn't been able to find a decent realtor down here. They seem like they don't want to/have to work for thier sale. I talked to one last night that said she was busy but she would give me a map of some homes in the area, and I could drive around and see if I like them. Then ask her to show them. Shouldn't she be helping me choose a location that would suite my needs and do some research or something besides just open the door and collect her percentage? Plus the market in Auburn is horrible for buyers. Anything $160,000 and under gets asking price or more and gets sold under a month. So I think sellers assistance is going to be hard to get.

Pete Rock · 04-23-2005, 10:42 AM

My friend bought a home with a 107% loan. This allowed him to pay off both cars. Now we live in CA so 7% of a home value was close to 30K. This brought down his debt to income ratio. If you are looking at something in the 160k range 7% would be just a little over 11K. You could make that into to 16+ upfront payments, make sure it doesn't go straight into principal if you don't want to make payments for a while. This would give you at least 18 months of not having to worry about truck payments. A lot can happen in 18 months, a raise, house appreciation (build equity) you might be able to take a HELOC by then. The thing you need to do is ask for specific programs because most brokers will try to qualify you under a loan that gives them maximum profit. Good luck and congrats on the wedding.

kvoman · 04-25-2005, 04:50 PM

Houses sold under a month is an eternity here in the Bay Area, CA. One house in our neighborhood went on the market Friday, open house Sat and Sun, received 3 offers on Monday, and sold on Tuedday over asking price - this was two weeks ago. The agent was not able to tell me the price but did say it was generously over the asking price. These houses are getting anywhere between 2% - 5% over asking price.

There are mortgage brokers that specialize in loans. Realtors may or may not be specialists in loans and won't be able to offer you real deals. You should do the home work and go look at the areas for yourself - see what you like and don't like, narrow down to an area or two then get the listing in those areas. The realtor is right in that she can serve you better if you know what you're looking for instead of just looking around. I'd look at the area not just day time but at night, especially weekend. Lots of things happened after work and on the weekend and you may miss them completely if you don't see them at night or weekend.

If you buy a house, you have equity. The way the lender sees it is if you buy a house and the house is worth $100k and you get a mortgage of $80k (1st), that's 80% of the value, now you don't have to pay PMI. The lender doesn't care how you finance the rest. And this is where a good broker can help you. You then can get a 2nd/HELOC on the remaining 20% (or 15% if you put 5% down) of the loan, that's the equity you have in your house, and finance the remaining loan.

What Pete Rock mentioned is the negative amortization. It's risky but works perfectly fine in CA because the market is too damn hot. It goes up about 5% per month in some areas. Its' ridiculous but people are lining up to buy houses in good areas.

SickWhip · 04-25-2005, 05:08 PM

[quote=kvoman]
If you buy a house, you have equity. The way the lender sees it is if you buy a house and the house is worth $100k and you get a mortgage of $80k (1st), that's 80% of the value, now you don't have to pay PMI. The lender doesn't care how you finance the rest. And this is where a good broker can help you. You then can get a 2nd/HELOC on the remaining 20% (or 15% if you put 5% down) of the loan, that's the equity you have in your house, and finance the remaining loan.[quote]

Please Explain this part again.