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Nicole Said:

What's the best mortgage interest rate I can get in Northern Virginia at this time?

We Answered:

Lets see for Northern Virginia you're looking at 4.375% today no points. Any of your local companies should be able to help you.

Alberto Said:

When can my husband and I get a home mortgage?

We Answered:

You will be able to qualify for an FHA loan 3 years from your BK discharge date & your scores must be above 580. If you are renting currently, make sure that you are paying by check & also make sure that there are no late payments on your credit report after you BK. You will also have to try to re-establish your credit by getting a credit card or two, a car loan or other loan, so it is reporting on your credit report.

Wade Said:

Can you apply for both a conventional and FHA mortgage at the same time?

We Answered:

Hey Melissa.

The question might be, "Would you even want to do that?" And, "Will the lender do it?"

Sadly, there are those in the real estate business these days who feel that more work AND time are required to process FHA mortgages. Some also falsely believe that the borrower who can qualify and obtain a conventional mortgage loan is a "better" applicant for the mortgage. For them, "better" applicants mean a higher likelihood that everything will go okay and they will sell the house and get their commission check or fee. The "commission" is what it all boils down to.

As a Mortgage Consultant, I will admit that years ago, for FHA we had to cross more "T"s and dot more "I"s - especially with FHA appraisals. But that's the old FHA. But many in the real estate business don't know how much FHA has changed.

They believe a conventional approval is their ticket to the bank, but many borrowers cannot meet the demanding criteria for conventional loans now. Whereas, they can qualify under FHA, And as you said, get a better interest rate.

Frankly, I find it reprehensible to require you to get a commitment for both loans. This would require 2 separate files to be submitted to possibly 2 different underwriters - (FHA and conventional might have two different divisions at the lender). It would be double work for the lender and the mortgage officer and technically there would be 2 separate underwriting fees payable - by you - since you wanted two commitment letters. You would also need 2 appraisals - one for FHA and one for conventional. Also, since you are applying twice, there should be 2 application fees.

Never in my years in this business have I heard a builder/realtor request this.

I am equally amazed that this builder cannot see that requiring you and the lender to do double work could cause a delay in closing the loan. More is likely to go wrong just because the buyer has 2 files being processed. Is the home being built or is it already standing?

And what about the fees to lock in the interest rate for 2 loans if your lender requires you to pay a lock fee?

I can imagine that if you want 2 loans processed, and the lender agrees, expect to pay for it in some way.

Did your attorney see the contract yet?

Melissa, it will boil down to how much you want this house and how desperate the builder is (if at all). AND what happens on the lender side will be crucial. If you decide to go along with this scenario, then you certainly would want a lender who does both FHA and conventional. Along with a mortgage person who has no problem doing double duty in crunch time. Offices are very busy trying to get everybody in by Nov 30 for the tax credit.

Good luck.

Clinton Said:

Is This FHA Mortgage Loan a Good Deal?

We Answered:

FHA mortgage loans are very good. The one draw back I have against a FHA mortgage loan is there is MIP sorta like PMI, that last the life of the loan no matter the balance of your mortgage loan.

Your MIP might be tax deductable depending on which tax bracket you are in.

For all tax and legal matters you should consult with your tax consultant and attorney.

Once you reach 80% of the value of your property I would consider refinancing to a conventional mortgage loan thus taking away the MIP and since the refinance would be for less than 80% of the value of the property your new mortgage would not have PMI.

Of course you would have to sit down and do the numbers to see if they match the cost versus any possible savings you might make from the refinance.

I would be reluctant to put down 15% with the housing market the way it is today. Once you purchase your property if could lose value thus your down payment would have been for naught and gone until the property appreciate in value. Presently, still in certain parts of the country properties are still losing in value.

Now your house is less than what you purchased it for and you have lost your down payment with the lost.

Therefore I would put down the minimum and leave my cash liquid in whatever instruments you presently have them.

You should ask and inquire about all the possible mortgage loans you are approved for.

You should ask as many questions as you can.Asking questions might conjure up more that you had not thought of. Don't leave your mortgage broker/bankers office until you are pleased with what they are telling you and you have all the answers to the questions you asked.

There are many things you should do, but the first thing you should do is contact a mortgage broker that does FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.

You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.

He will inform you of what is necessary once you contact him.

This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.

Your pre-approval should indicate the interest rate, monthly mortgage payment and how long you have to pay the mortgage off (Terms). You should get a Good Faith Estimate (GFE) and a Truth in Lending (TIL) once you have beem pre-approved. As soon as you get these two documents call your loan consultant and ask questions about the numbers, what they mean, closing cost you are required to pay.

Make sure once you have seen a property that you inquire of a roof cert(even if the lender does not require one), an inspection report, an appraisal. A sales contract the give you the right to back out based on your inspection report.

To avoid a horror story don't sign anything unless you know exactly what it is that you are signing. Once you have signed your loan docs it is too late 2-3 years later to find out that what you thought you were getting you are not getting.

So if the interest rate, mortgage payment and terms on the mortgage docs you are about to sign do not match what you were told prior to you getting and signing your mortgage docs STOP and get an explanation from your mortgage consultant.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

Kathy Said:

When should I lock in my interest rate on a fixed 30-yr FHA mortgage?

We Answered:

6.375% is a good rate, I would lock it in. Also, ask them if you can re-lock, some banks allow you one free re-lock and many banks will allow you one re-lock for a fee. When I got my mortgage, I was allowed to re-lock for a $500 fee...which was worth it because the rate dropped significantly right before we closed. Knowing if you are allowed a re-lock will probably make the decision easier.

Deanna Said:

How should I go about purchasing my gram's house? Mortgage? Home Equity? FHA? It is in an estate of my dad.?

We Answered:

There are a number of ways to do this, but it's all about the level of trust between the parties.

First off, the purchaser needs to be someone that can get a loan. If that is you, fine, but if not, you need to figure out who can meet the lenders requirements. What mortgage products are available to you are predicated on the creditworthiness of the borrower. A mortgage broker may be of real assistance to you in figuring this out.

Closing costs vary with the mortgage product. You will need to figure out the nuances of closing costs as you decide your mortgage.

Finally there is the question of title. Assuming you purchase the house, the title is now in your name. It sounds like the house is already in a trust for the estate. Transferring the beneficiary name on the trust may be the easiest thing to do. And it doesn't involve much money at all.

Nothing needs to change until you sell the house. If the trust owns the house, the trust gets the money. You need to look at the trust documents to understand what happens to the money in the trust.

Good Luck