Now that I Matched -> Any advice on lenders for mortgages?

[zinjanthropus]

I thought it was hunky dorey too until I saw his HUGE origination/closing fees. Near 7500 on just over 200K. I went with Wells Fargo at a better rate and less BS 'closing costs'.....

That was all a year ago.

My origination fee from Compass is zip

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[dowiattp]

My initial GFE from Compass Bank had closing costs of around $750 (fees just from their bank). I had my realtor send info from the title company and add in the DC tax and it comes out to about $6,800 (including interest, etc.). Thankfully the seller is paying 3% of my 300k purchase for closing costs, so I'm able to throw in several months of HOA fees, etc. in and still come in a little under. I close next Tuesday- hopefully this goes well.

 

[zinjanthropus]

My initial GFE from Compass Bank had closing costs of around $750 (fees just from their bank). I had my realtor send info from the title company and add in the DC tax and it comes out to about $6,800 (including interest, etc.). Thankfully the seller is paying 3% of my 300k purchase for closing costs, so I'm able to throw in several months of HOA fees, etc. in and still come in a little under. I close next Tuesday- hopefully this goes well.

Hey Dowiattp-

I'm rooting for you and for things to go well -- you're about 3 weeks ahead of me in this process and also using Compass.

Not sure I understand though what you meant about Compass' original GFE on the closing costs though -- the $6800 number you came up with certainly included prepaid items (interest, insurance, taxes) and closing costs (bank crap, etc) - so of course it would be a much higher number than just the bank stuff. But, even with just the bank stuff their original GFE should have been much higher obviously and mine seems about dead on down here in Florida. Were they just unfamiliar with the DC market/regulations?

Anyway, interested to know how everything goes for you as you near closing.

Thanks.

 

[dowiattp]

Thanks! This is my first time through the whole process and I'm learning as I go.

They were not familiar with the DC market (the individual broker and his staff had never written a loan in DC). The district has all sorts of crazy taxes/fees, but thankfully I get a five year abatement on annual taxes.

The reason I said my initial GFE was so low was because there was no huge origination fee, or other nickel/dime fees that tend to add up (courier/attorney/processing etc.). GFEs I received from other banks were between 9700 (BOA) and 16000 (SunTrust), and in line by line comparison Compass simply just didn't charge a lot of the specifics that the other banks did (and I mean items specific to the bank- not the title company or taxes etc.).

I'll update as it happens!

 

[zinjanthropus]

Thanks! This is my first time through the whole process and I'm learning as I go.

They were not familiar with the DC market (the individual broker and his staff had never written a loan in DC). The district has all sorts of crazy taxes/fees, but thankfully I get a five year abatement on annual taxes.

The reason I said my initial GFE was so low was because there was no huge origination fee, or other nickel/dime fees that tend to add up (courier/attorney/processing etc.). GFEs I received from other banks were between 9700 (BOA) and 16000 (SunTrust), and in line by line comparison Compass simply just didn't charge a lot of the specifics that the other banks did (and I mean items specific to the bank- not the title company or taxes etc.).

I'll update as it happens!

Gotcha! Good luck with everything.

I just had my offer accepted today and am awaiting the contract right now. So far, things have been great on the Compass Bank side of things. I just hope the rates drop a little more (I think were cut this morning). In the 2 weeks I've been doing this, my rate went up from 5.125 to 5.5 but I think I should have some left in closing costs (which seller is paying) to buy that rate down a bit.

 

[that dr. jack]

You can use a commitment letter from an employer or an employee contract. If either of those items fit. The only need for both applicants to be employed is if both incomes are needed to qualify or the physician applicant needs secured employment. Hope this helps.

haha, this is absolute BS.

 

[that dr. jack]

Thanks! This is my first time through the whole process and I'm learning as I go.

They were not familiar with the DC market (the individual broker and his staff had never written a loan in DC). The district has all sorts of crazy taxes/fees, but thankfully I get a five year abatement on annual taxes.

The reason I said my initial GFE was so low was because there was no huge origination fee, or other nickel/dime fees that tend to add up (courier/attorney/processing etc.). GFEs I received from other banks were between 9700 (BOA) and 16000 (SunTrust), and in line by line comparison Compass simply just didn't charge a lot of the specifics that the other banks did (and I mean items specific to the bank- not the title company or taxes etc.).

I'll update as it happens!

our closing costs are about $5200, which is less than BOAs fees. it's working out well. now the biggest issue is making sure our cats get to PA ok. I'm actually flying back to LA for a day and then a friend and I will be flying them to philly in the cabin with us. times like these, i wish i was a dog owner cuz then i'd be able to just drive them with me.

 

[zinjanthropus]

Has anyone that used Compass bought points to decrease their rate? I'm gonna have some left over funds from closing I believe and would like to think about buying the rate back down to where it was just a week ago. Anyway, if anyone knows specifics about how much each point decreases rate with compass, I would appreciate the info. Thanks.

 

[Mutt22]

Has anyone that used Compass bought points to decrease their rate? I'm gonna have some left over funds from closing I believe and would like to think about buying the rate back down to where it was just a week ago. Anyway, if anyone knows specifics about how much each point decreases rate with compass, I would appreciate the info. Thanks.

We just successfully closed on our home in Wyoming yesterday with Compass Bank. We asked the seller's to pay 3% closing costs on our $360k home. That translated to $10,800. It turned out that all the prepaids and other closing costs were only 3k. We didn't want to give the seller all that extra cash. So, we used the leftover money to buy down the rate. We ended up having the sellers pay 2 points (2% of purchase price). Original rate was 5.75%... our 2 points bought us 4.75%. So, if I'm doing the math right, each point bought 0.5%. FYI- you can do half points too. We almost did 1.5 points. I hope this helps.

 

[zinjanthropus]

We just successfully closed on our home in Wyoming yesterday with Compass Bank. We asked the seller's to pay 3% closing costs on our $360k home. That translated to $10,800. It turned out that all the prepaids and other closing costs were only 3k. We didn't want to give the seller all that extra cash. So, we used the leftover money to buy down the rate. We ended up having the sellers pay 2 points (2% of purchase price). Original rate was 5.75%... our 2 points bought us 4.75%. So, if I'm doing the math right, each point bought 0.5%. FYI- you can do half points too. We almost did 1.5 points. I hope this helps.

Holy Crap - I can't believe that you get 0.5% for 1 point. I had been hearing 0.125 - 0.25 in general. I think I will have enough left over from seller paying closing costs to buy 2 points - and maybe even another half. Awesome.

Now, if you don't buy down points with excess closing cost funds, can you just keep the cash or does it have to go back to the seller?

 

[dowiattp]

Holy Crap - I can't believe that you get 0.5% for 1 point. I had been hearing 0.125 - 0.25 in general. I think I will have enough left over from seller paying closing costs to buy 2 points - and maybe even another half. Awesome.

Now, if you don't buy down points with excess closing cost funds, can you just keep the cash or does it have to go back to the seller?

I was told that the maximum you could get back was the amount of earnest money if any you had to put up initially.

 

[deleted109597]

We just successfully closed on our home in Wyoming yesterday with Compass Bank.

We asked the seller's to pay 3% closing costs on our $360k home.

I believe that is more than the US paid for the state. (I'm kidding, we didn't buy it). However, this means I need to buy a bigger house. I can't imagine what kind of land you are getting there. Get a ranch, or are you bordering Yellowstone or something?
We want pictures. Ok, I want pictures.

 

[Mutt22]

I was told that the maximum you could get back was the amount of earnest money if any you had to put up initially.

Yep. That was what we were told too... we got back $500 of our $1000 earnest deposit.

 

[Mutt22]

I believe that is more than the US paid for the state. (I'm kidding, we didn't buy it). However, this means I need to buy a bigger house. I can't imagine what kind of land you are getting there. Get a ranch, or are you bordering Yellowstone or something?
We want pictures. Ok, I want pictures.

Ha Ha... I wish. Unfortunately, the economy in Wyoming is actually doing pretty well. The housing market hasn't slumped and is surprisingly pricey. Don't get me wrong, it's a nice house, but not much land.

 

[deleted65604]

Ha Ha... I wish. Unfortunately, the economy in Wyoming is actually doing pretty well. The housing market hasn't slumped and is surprisingly pricey. Don't get me wrong, it's a nice house, but not much land.

People! It isn't about the size of the house, or how much land it's on. It only matters how well you use "it".

 

[tkim]

haha, this is absolute BS.

Worked for my loan.

 

[Hefeweizen]

If you are a brand new resident and buying a home, I wouldn't be so concerned with the interest rate. You will likely only be in the home for a few years, and the minimal downpayment and closing costs should be your priority. You won't pay much on a higher interest rate if you are selling your home in a few years anyway.

It wouldn't make any sense to buy points to try to get a lower interest rate unless you actually plan on staying in the same house after you are finished with residency....

 

[zinjanthropus]

If you are a brand new resident and buying a home, I wouldn't be so concerned with the interest rate. You will likely only be in the home for a few years, and the minimal downpayment and closing costs should be your priority. You won't pay much on a higher interest rate if you are selling your home in a few years anyway.

It wouldn't make any sense to buy points to try to get a lower interest rate unless you actually plan on staying in the same house after you are finished with residency....

There are some examples where I would agree with your reasoning (i.e. you are paying for the rate buy down out of your own pocket). However, in this market, you can get closing costs paid at a high enough percent to include enough left over money for a rate buy down. I got 6% closing costs from my seller which left enough to buy down 0.75% saving me about a hundred bucks a month on the monthly PIMI payment.

Otherwise, yes, you are usually right - the break even point for a rate buy down is often about 60 months.

 

[dowiattp]

Closing went very well today- not only did my interest rate drop .75 since the last time I was updated, I learned I was eligible for an exemption on DC's recordation tax (1.1% of my 300K purchase). The huge credit allowed me to have 27 months of my HOA fees paid, and with the interest rate drop my monthly payment is about $300 less than what my initial GFE estimated. Compass Bank's closing costs remained both consistent and low (in fact it seemed like a few of the fees that were on my GFE were not on my HUD).

The new house (well it's really just a small studio) is awesome, and the neighborhood I'm in is even cooler than what I had originally thought. My first twelve hours here have been excellent. Now back to more cleaning....

 

[zinjanthropus]

Closing went very well today- not only did my interest rate drop .75 since the last time I was updated, I learned I was eligible for an exemption on DC's recordation tax (1.1% of my 300K purchase). The huge credit allowed me to have 27 months of my HOA fees paid, and with the interest rate drop my monthly payment is about $300 less than what my initial GFE estimated. Compass Bank's closing costs remained both consistent and low (in fact it seemed like a few of the fees that were on my GFE were not on my HUD).

The new house (well it's really just a small studio) is awesome, and the neighborhood I'm in is even cooler than what I had originally thought. My first twelve hours here have been excellent. Now back to more cleaning....

Congratulations! That's great to hear that your closing went so smoothly. I've heard many good things about Compass from multiple people and your story only echoes that feeling. I've had a great experience thus far - closing on July 2.

Good luck in D.C.