finding a good lender

16 years ago

My husband and I trying to find a lender that will approve us for a house loan. We had one old ding on his credit, trying to settle with company but they want to much money to settle. Mortgage guy said once this off we have 100% chance of buying house we bidded on. We would like to find a company that would accept us with this. If anyone could help we would sure appreciate it. We need to be out of rental property by first/middle of Nov.

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Comments (7)

marys1000
16 years ago
This is a good question that more generally may provide information to all buyers. How do you find a good lender? What other things do you look for besides just the interest rate? Costs? Whether they sell the loan?

Kathy - have you been living in the same area for awhile? Or previously to this did you live in one are for a long time? I guess I'm wondering if you have had a bank account for a long time at one particular bank. Or perhaps, like USAA if you had your insurance with someone for a long time that also has a banking/loan division. Perhaps they would be more likely to overlook one thing on your credit report.
mzdee
16 years ago
I agree with USAA. If not, do you belong to a credit union? I used my credit union for my last purchase (recent). I got an excellent rate, and get this....
they closed me on time and in 3 weeks! They paid all of those lender fees and lender based closing costs (survey,application fee, credit reports, pest inspection, etc.). That alone saved me 2K or more. They blew my mind with the customer service.
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Well, after 3 closing times set and canceled at the last minute, 2 contract extensions, dozens of phone calls and not a few tears, it appears the deal is disintegrating. Not completely dead yet, but definitely on life support. After all is said and done either way, I can feel free to post more detail, but suffice it to say, some of the parties involved appear to have been less than truthful about where things stood. Right now, about as discouraged and emotionally exhausted as I've ever been. I can only imagine how the buyer must feel as well. A bunch of our stuff is now in storage in anticipation of moving, because we were moving to temporary quarters while we build. Including many of the "decor" items that dressed up the house for staging purposes. Plus, the storage is an added expense which we really weren't planning on without selling the house. So, not sure what to do about that now that it looks like we may be back to square one. The saving grace is that our realtor absolutely insisted on negotiating a "possession after closing" into the contract, just in case, so that we would not move before closing and then be stuck. I hate this.
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Wow! Somebody either erred/misled big time. Was the possibility of wrapping prepaids into a tax deductible point presented to you by a mortgage broker or a loan officer from the lender? Was this arrangement written down anywhere? At any rate, the scenario is not allowed by the IRS and I would think most lenders and settlement companies would be completely aware of this. Your HUD-1 settlement sheet is your document of record and the one the IRS would review in the case of an audit/question. I'd pursue it with a higher up at the lender and,depending, on what I heard report it to the lender's regulatory authority. The deductibility of points can be a bit confusing so I'll let the IRS explain it: ___"Topic 504 - Home Mortgage Points The term "points" is used to describe certain charges paid to obtain a home mortgage. Points may be deductible as home mortgage interest, if you itemize deductions on Form 1040, Schedule A (PDF). If you can deduct all of the interest on your mortgages, you may be able to deduct all of the points paid on the mortgage. For information on deducting interest, refer to Topic 505. You can deduct the points in full in the year they are paid, if all the following requirements are met: -Your loan is secured by your main home (your main home is the one you live in most of the time). -Paying points is an established business practice in your area. -The points paid were not more than the amount generally charged in that area. -You use the cash method of accounting. This means you report income in the year you receive it and deduct expenses in the year you pay them. -The points were not paid for items that usually are separately stated on the settlement sheet such as appraisal fees, inspection fees, title fees, attorney fees, or property taxes. -You provided funds at or before closing, that were at least as much as the points charged, not counting points paid by the seller. You cannot have borrowed the funds from your lender or mortgage broker in order to pay the points. -You use your loan to buy or build your main home. -The points were computed as a percentage of the principal amount of the mortgage, and -The amount is clearly shown on your settlement statement. Points that do not meet these requirements may be deductible over the life of the loan. Points paid for refinancing generally can only be deducted over the life of the new mortgage. However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first six requirements stated previously, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Points charged for specific services, such as preparation costs for a mortgage note, appraisal fees or notary fees are not interest and cannot be deducted. Points paid by the seller of a home cannot be deducted as interest on the seller's return, they are a selling expense which will reduce the amount of gain realized. Points paid by the seller may be deducted by the buyer provided the buyer subtracts the amount from the basis, or cost, of the residence. Points you pay on loans secured by your second home, can be deducted only over the life of the loan. You may be subject to a limit on some of your itemized deductions, including points, for more information on the adjusted gross income limitations please refer to the Form 1040 Instructions. For more information on points, refer to Publication 936, Home Mortgage Interest Deduction."
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mfbenson
16 years ago
Before even shopping around I'd get a copy of your credit report from all three major bureaus and make sure this one ding is really the only one. Plus, if you get your credit score, you can cut to the chase when shopping around for a loan - tell them your income and credit score and ask what interest rate you qualify for. They should at the least be able to give a narrow range.

I'd avoid any lender that has been in the news lately regaring financial turmoil - american home, countrywide, to name two big ones. You can see a full list of lenders to avoid at this link: (a bunch of them are totally out of business, so of course you wouldn't really have to worry about getting a loan from most of them)

Here is a link that might be useful: the ones on the watch list are dangerous
spikeysmom
16 years ago
My recommendation to all of my customers is go local. If you have had an account with a local bank for years go there, even if it's in an area you've never lived in talk to them. You can often get something taken off if you have a checking acct and have the payment automatically deducted. If your credit allows I would always say go to a bank they know your local areas, tend to send local appraisers and you have a real person to talk to and can meet in person. I have had many more nightmare closings with mortgage brokers from other parts of the country than I have had with the banks right down the street.
sparksals
16 years ago
Just to clarify about USAA, you can only become a member if you or a family member has served in the Armed Forces.
triciae
16 years ago
Many lenders who were writing alt-As a couple months ago are no longer accepting applications for anything except conventional agency underwritten loans. Many, if not most, small to medium-sized local or regional banks never did write alt-As.

I know that IndyMac is still accepting applications for alt-A borrowers. Give them a call.

I've made an assumption that the ding to your credit is not severe enough to put you below the alt-A level.

/tricia
dave_donhoff
16 years ago
Hi Kathy,

My husband and I trying to find a lender that will approve us for a house loan. We had one old ding on his credit, trying to settle with company but they want to much money to settle. Mortgage guy said once this off we have 100% chance of buying house we bidded on. We would like to find a company that would accept us with this.

What you need is a good BROKER. Trying to DIY with a unique credit situation is really asking for trouble... you'd basically have to try to BECOME a mortgage broker (with a mortgaeg broker's portfolio of relationships) in order to have any assurance of getting a reasonable (let alone best) deal for your situation.

You don't say what the actual nature of the credit "ding" is... nor what kind of loan parameters you are applying for (and have been turned down for.) Nonetheless.... a single "old" credit ding should NOT prevent you from getting a purchase loan.

Luck!
Dave Donhoff
Strategic Equity & Mortgage Planner

finding a good lender

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marys1000

mzdee

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