Realtor/Lender Frustrations!!

[chryslerfat]

might I add, a 30 yr amortized mortgage is never a good move, unless int rates are near 0.. figure the int you wil pay 20 yr vs 30......

A 30 year loan is actually smart because if they get in money trouble they can pay the lower payment. How it becomes smart is on a 30 year loan they can double the monthly amount of principle and pay it sooner but if they have money trouble for a month or 2 they pay just the standard payment.

 

[barbee6043]

A 30 year loan is actually smart because if they get in money trouble they can pay the lower payment. How it becomes smart is on a 30 year loan they can double the monthly amount of principle and pay it sooner but if they have money trouble for a month or 2 they pay just the standard payment.

yes I understand that theory , but what I have found is many people will make that min. payment only. but you are right about the cushion it provides. I look at difference in interest paid, especially when rates are higher. just me...

prioritizing bills is a key for people to get where they want to be financially.

what has to be paid first? mortgage, electric bill.

ya got to have gas to get to work to make $$ to pay the bills.

ya got to eat.

then..... do I drive a nice new comfortable car to work, or drive an older car with no payment, low ins, and taxes???

how big and fancy home do I really need!???? anyway!?

do I eat out or cook at home!? movies? new clothes???

where do I place paying off credit card, student loan? high up, middle or last?

back decades ago, unless you had a "trick govt" home loan, you had to have that "hard cash" equity and it wasn't 5% or less. getting a loan was a "privaledge" NOT a " right!"

 

[jbc426]

maybe yall oughta move to MI
a 3 bedroom, 2 bathroom 1750 square foot duplex goes for less then $200.000 here
and keep in mind, that is for BOTH sides, so it is a 6 bed, 4 bathroom 3500 square feet building



as far as mortgages go, try a credit union instead of a bank
me and the wife have had good luck with them

The price is right, but the only problem with that is that then you live in Michigan, cold, hot, flat land and road salt.

 

[jbc426]

i just purchased a income property and went thru all this last month....i was approved for the loan in less than 2 weeks. as i look at your income details i can see why you are having problems. your debt to income ratio is too high. your cc needs to have no more than 20% of the total limit on it. you need to get your income to debt ration to around 25%. your is almost 50%. so you need to shed some debt like get rid of a car payment and get that cc down to around 2000 dollars. if you talk to any mortgage company they would tell you something like this. and yes thank the new fed regulations for this.

I've learned some things in this world, one of which is that in the US, income property is nice. Duplexs are not enough. 4-unit places work very well in a strong rental market. Live in one rent the others, and they pay your mortgage and then some. Plus, the depreciation write-off saves you lots of tax $. You can use the income to help qualify too. I've never owned a new car, and suspect I never will. Spent lots of money on old ones, but no payments. Don't use credit cards unless you can pay them off quickly. If you want to get ahead, sacrifice for years and work two jobs or 3. Buy income property and live in one unit. Work hard until your property can replace one, two or 3 jobs incomes. Drive Mopars!

 

[MOPARMITCH]

might I add, a 30 yr amortized mortgage is never a good move, unless int rates are near 0.. figure the int you wil pay 20 yr vs 30......

I always liked a 15 year note, and pay double. Real Happy Then !! Especially at 3%
Just my 2 cents.

 

[MOPARMITCH]

I've learned some things in this world, one of which is that in the US, income property is nice. Duplexs are not enough. 4-unit places work very well in a strong rental market. Live in one rent the others, and they pay your mortgage and then some. Plus, the depreciation write-off saves you lots of tax $. You can use the income to help qualify too. I've never owned a new car, and suspect I never will. Spent lots of money on old ones, but no payments. Don't use credit cards unless you can pay them off quickly. If you want to get ahead, sacrifice for years and work two jobs or 3. Buy income property and live in one unit. Work hard until your property can replace one, two or 3 jobs incomes. Drive Mopars!

Yes, Commercial Property is the way to go !! Haven't worked in 15 years !!

 

[64DartGTinAZ]

A 30 year loan is actually smart because if they get in money trouble they can pay the lower payment. How it becomes smart is on a 30 year loan they can double the monthly amount of principle and pay it sooner but if they have money trouble for a month or 2 they pay just the standard payment.

^^ This ^^

You can get most of the benefit, but if your circumstances change, you have a better chance of getting through it - if you're on a 15 year note, you have to make the higher payment regardless. It comes down to self discipline.

 

[64DartGTinAZ]

I've learned some things in this world, one of which is that in the US, income property is nice. Duplexs are not enough. 4-unit places work very well in a strong rental market. Live in one rent the others, and they pay your mortgage and then some. Plus, the depreciation write-off saves you lots of tax $. You can use the income to help qualify too. I've never owned a new car, and suspect I never will. Spent lots of money on old ones, but no payments. Don't use credit cards unless you can pay them off quickly. If you want to get ahead, sacrifice for years and work two jobs or 3. Buy income property and live in one unit. Work hard until your property can replace one, two or 3 jobs incomes. Drive Mopars!

Great idea for getting started.

If you're owner/manager, you're more likely to come out ahead than if you try to have someone else manage them (don't ask me how I know - bad memories).

Find a nice fourplex in a top-half-of-the-multi-unit market (i.e. not the bad neighborhood)
Find good tenants and be good to them - costs less to keep them than to rehab the unit and find new tenants

 

[crackedback]

A 30 year loan is actually smart because if they get in money trouble they can pay the lower payment. How it becomes smart is on a 30 year loan they can double the monthly amount of principle and pay it sooner but if they have money trouble for a month or 2 they pay just the standard payment.

^^ This ^^

You can get most of the benefit, but if your circumstances change, you have a better chance of getting through it - if you're on a 15 year note, you have to make the higher payment regardless. It comes down to self discipline.

The key word in all of this - DISCIPLINE

I used to suggest the same approach with my clients. Take the 30yr, pay it off as 15yr. You make about 3 extra payments at the end due to the higher interest rate 183 payments vs 180. Yet you still have flexibility.

If you lack discipline, like most things in life, the outcome is less likely to be favorable.

 

[oldmopardude]

As a Realtor for 23+years, and a Loan officer my advice is get the credit score up to the minimum 620 for FHA by dealing with the obvious collection Issues. The credit card Isn't the problem. The 550 per month is a big problem as well. I would got to Navient and re-negotiate down the minimum Payments Due. In your situation FHA is the only option you have, as your debt to Income ratio Improves, The maximum debt allowed will go up. Unfortunately, to buy a 150-200k house, you will need 10k+ in minimum down,closing costs, and prepaids. Be patient,1) deal with the collections and 2)Uncle Sam(student loans)Then, reconsider wether you need that car payment. Sell it and get a cheap car until the dust settles. It is all a numbers game, as the Automated underwriting system determines wether you get a Mortgage or not. Thanks to Gov't Interference in the whole process. Loan Officers are no longer allowed make any decisions, and they aren't paid squat for all the hoops they now have to jump through.
as Bad as it seems, it was easier before 3 oct 15. Now things are really ugly.( up to 60 day closings)

 

[64 SRT8 Dart]

Hey everyone, been several weeks since posting. I appreciate all the advice and I think we are just going to focus on paying our debts down and retrying. Probably the best bet anyway. That way we only have a couple payments left on the autos and they'll be paid off within the first year of owning a home. Not sure if I mentioned but all collection bills were paid in full near the middle of this year.
It'll suck, but may have to live in this apartment for an 8th year while doing it.

Also, my job situation has turned sketchy. The shop I work for is in a major pinch and are about to cut jobs. Although, my supervisor told me I'm safe, I'm taking it with a grain of salt. One of the major problems with the shop is the overhead. The ratio now is 1 management to 1.42 labor!!! How we've survived this long is beyond me. Heck, we have one lady who is a Project Manager, who was an assistant to another PM who hired in 2years ago, that is making 6 figures!!! She admits to learning about welding and machining watching YouTube videos!!! You've got to be friggin kidding me!! 6 figures! Good for her I guess for getting the pay but sheesh! She's not even good at her job and is one of the worse PM's we have. Anyway, this will be a huge factor in our decisions. For now, we're going to stop paying extra towards the card and put it all in savings, just in case. Hopefully work picks up this Spring.

 

[barbee6043]

Hey everyone, been several weeks since posting. I appreciate all the advice and I think we are just going to focus on paying our debts down and retrying. Probably the best bet anyway. That way we only have a couple payments left on the autos and they'll be paid off within the first year of owning a home. Not sure if I mentioned but all collection bills were paid in full near the middle of this year.
It'll suck, but may have to live in this apartment for an 8th year while doing it.

Also, my job situation has turned sketchy. The shop I work for is in a major pinch and are about to cut jobs. Although, my supervisor told me I'm safe, I'm taking it with a grain of salt. One of the major problems with the shop is the overhead. The ratio now is 1 management to 1.42 labor!!! How we've survived this long is beyond me. Heck, we have one lady who is a Project Manager, who was an assistant to another PM who hired in 2years ago, that is making 6 figures!!! She admits to learning about welding and machining watching YouTube videos!!! You've got to be friggin kidding me!! 6 figures! Good for her I guess for getting the pay but sheesh! She's not even good at her job and is one of the worse PM's we have. Anyway, this will be a huge factor in our decisions. For now, we're going to stop paying extra towards the card and put it all in savings, just in case. Hopefully work picks up this Spring.

your decision probably very sound one. look at the world economy, the stock markets correction, national productivity, price of crude ( low is not necessarily in indication that all is well in the world), etc.

don't be surprised if you don't see the U S in another bad recession/depression, price of R/E fall again like a rock. you are young, take your time, make sound decisions, and BE in the drivers seat when time comes!