New Mortgage Question

[Rabbuk]

I agree. While it seems invasive, asking someone if they're going to have a job in three months isn't much different from asking them if they're currently employed.

Even though they've loosened up, it's still much more difficult to get a mortgage now than it was 15 years ago. A friend of mine has quite a pile of money - not FU money, but close. He's nearing 8 figures. He has tried to buy two separate houses the last year; both fell through because he doesn't show regular income and couldn't get a mortgage. He offered to pay up to 40% of the down payment on one of them - still couldn't get one. Both houses were under $1M. He did finally get one approved and shoved through a month ago on attempt #3.

Why didn't he just buy the house outright?

 

[Gossamer]

Was reading an article where the hypothesis said home values will not tank. The number of buyers will fall but the inventory of homes for sale will fall even more....

So basically. I don't know.

I assume it'll be a market to market situation with the virus playing a gigantic role in which way we go.... In a lot of ways.

Migration from cities to places like Boone or Winterset with 100% remote workers? Back to cities with a quick COVID vaccine or the virus fizzles out?

No idea. Throw the stock market in that category too

that's what's odd about all this...i've read the opposite regarding home values...in fact, some lenders are no longer allowing home equity loans/lines in fear of that...while some are sweetening the deal. honestly, it's a complete crap shoot...nobody at any level can predict what's happening because it's unprecedented...which is a term I'm getting tired of hearing and using.

 

[KnappShack]

that's what's odd about all this...i've read the opposite regarding home values...in fact, some lenders are no longer allowing home equity loans/lines in fear of that...while some are sweetening the deal. honestly, it's a complete crap shoot...nobody at any level can predict what's happening because it's unprecedented...which is a term I'm getting tired of hearing and using.

I'm ready to fall back on conspiracy theories. It is the only logical way to make this new world order logical

 

[Beernuts]

that's what's odd about all this...i've read the opposite regarding home values...in fact, some lenders are no longer allowing home equity loans/lines in fear of that...while some are sweetening the deal. honestly, it's a complete crap shoot...nobody at any level can predict what's happening because it's unprecedented...which is a term I'm getting tired of hearing and using.

Current unemployment rate of 14.7%.
Nearly 1/3rd of people did not pay their April home rent / mortgage in full / on time.
May numbers will be worse.

I think time is on the side for those who want to purchase / build right now. There could be some great opportunities as we approach fall. You may be able to buy 25% more home for the same dollars by waiting six months.

 

[BCClone]

Current unemployment rate of 14.7%.
Nearly 1/3rd of people did not pay their April home rent / mortgage in full / on time.
May numbers will be worse.

I think time is on the side for those who want to purchase / build right now. There could be some great opportunities as we approach fall. You may be able to buy 25% more home for the same dollars by waiting six months.

Priced some metal gating. 20-25% under a year ago.

 

[yowza]

Mine didn't ask me, closed Tuesday. I don't know if I actually got a call into employer but it would make more sense if they asked the employer your question directly rather than asking you or me.

My area still pretty heavily shut down. Escrow had a picnic table set up outside their office.

They usually call current employer for verification of employment and income.

 

[mywayorcyway]

In before, "If you can't afford to pay cash for your new home, you can't afford a new home."

You were just a moment too early.....

Why didn't he just buy the house outright?

Because he doesn't want to tie up all of his cash in house(s). He prefers to finance and invest the cash.

 

[ArgentCy]

In before, "If you can't afford to pay cash for your new home, you can't afford a new home."

Not even Dave himself goes that far... at least for your first home. All rentals are straight cash.

 

[ArgentCy]

You were just a moment too early.....

Because he doesn't want to tie up all of his cash in house(s). He prefers to finance and invest the cash.

Jumbo loans (over $510,000 now) are much harder now because the banks can't sell them very easily. The GSE backed loans are much easier.

 

[mynameisjonas]

Jumbo loans (over $510,000 now) are much harder now because the banks can't sell them very easily. The GSE backed loans are much easier.

Most people will take a 1st to the max and piggy back a 2nd. Jumbo market is going to be very challenging in the short term.

 

[enisthemenace]

Jumbo loans (over $510,000 now) are much harder now because the banks can't sell them very easily. The GSE backed loans are much easier.

Well, son of a *****. I’ve been considering a build relatively soon myself. Not sure I would need that much, but I bet it’s close.

 

[mynameisjonas]

Well, son of a *****. I’ve been considering a build relatively soon myself. Not sure I would need that much, but I bet it’s close.

Well then you would definitely just take a 1st up to the max, without taking it jumbo. Rates are higher for jumbo loans.

 

[RedDog]

Well, son of a *****. I’ve been considering a build relatively soon myself. Not sure I would need that much, but I bet it’s close.

It will be close.

 

[BCClone]

Well, son of a *****. I’ve been considering a build relatively soon myself. Not sure I would need that much, but I bet it’s close.

Depends how big and how high end you want it. Seen houses built for 200k that were decent and seen some that were 550k with an unfinished basement and garage because they ran out of money. At 30 years old, that is a heck of a mortgage they will have.

 

[MeanDean]

I would recommend that you contact your favorite local legal professional before deciding to lie on a mortgage application.

So far I've never met anyone in the legal profession that ever approached becoming a favorite.

 

[FatNTired]

Why didn't he just buy the house outright?

Because we all have those friends making 8-figures who can’t secure a loan. That kind of money is so difficult to document. 6 or 7-figure is a different story.

 

[SouthJerseyCy]

.


They want a written letter.
Actually my employer will send them a letter stating that working in an office is not required to maintain employment. So I will be fine.

More curious if other people are seeing this.

Rates are low, but compared to past mortgage discussions, this one has had many more questions, and I mean some crazy ones.. Even though I am putting down a decent chunk and have shown assets to protect them.

Maybe because this is a new mortgage and not a refi, is making it more challenging.

I was supposed to close on my refi yesterday. Pushed because they misspelled my first name in one spot, so all the papers need redone.

Anyway, they did not ask that question, but I work remotely in non-covid times.

 

[BCClone]

I was supposed to close on my refi yesterday. Pushed because they misspelled my first name in one spot, so all the papers need redone.

Anyway, they did not ask that question, but I work remotely in non-covid times.

Was this over the internet? Otherwise as long as it wasn’t the announcement area on the mortgage or loan doc, most times you can cross out and correct it and then have each party initial that they accept the change.

 

[SouthJerseyCy]

Was this over the internet? Otherwise as long as it wasn’t the announcement area on the mortgage or loan doc, most times you can cross out and correct it and then have each party initial that they accept the change.

As I understand it, it was on the deed.

 

[cyfan92]

2.75% on a 30 yr new purchase at Green State Credit Union. Unbelievable low rate!

2.25% for the same loan on a 15 yr term