No Money Down Loans With A Va Mortgage Lender [mortgagegoal.blogspot.com]
Question by : Am I getting taken advantage of by my VA mortgage lender? My VA lender is saying I need 4% closing cost for my homeloan for $ 270,000. My realtor is saying that is way to much and that my lender is taking advantage of me just to make a little extra money for himself. I read online that average is 3% to 4% and my lender says that it is normal and is fine to also ask the sellers to pay all my closing cost(expect the things they are forbidden to pay by the VA) but my realtor says again that no one will pay that much in closing cost(about 10,000)? This is my first home purchase and have no idea what to do. I like my lender and my realtor but they both are saying the other is incompetent. Any tips or advice would be greatly appreciated. Thanks again ~Fulla Best answer for Am I getting taken advantage of by my VA mortgage lender?:
Answer by Lisa L
That is way too much. Sounds like you are paying points plus many junk fees. Get a fees worksheet from another lender. Try a mortgage banker, not broker. That way you won't have YSP to pay. No need to pay a middle man when you can go right to the source.
Answer by someone
Where is the Disclosure form that lists what is included in that fee such as home inspection, appraisal, title search, title insurance, registration fee, transfer fee and so on, broken down with the cost of each item. You are legally entitled to that paperwork before you sign for the mortgage. Have you lender send it to you.
Answer by Bill
It sounds a little high but probably includes 1 year prepaid taxes and 1 year prepaid insurance and possibly 1 year prepaid HOA fees plus all the other associated cost. Sometimes a VA loan is not a benefit, you should compare it to a conventional loan.
Answer by mortgagequeen
No, yo u should not need 4% in closing costs if you are looking at a 270,000 home. Closing costs should not amount to 10,000. Every closing is different and has different fees because of the transfer taxes and property taxes for each property, however, 10,000 sounds like way too much. You can message me with the particulars and I can give you an accurate breakdown. I'm wondering if your lender really understands VA loans. The items that a seller was "forbidden" to pay on a VA loan have no meaning today because the good faiths have been changed and are not broken down like they used to be. Even giving you that information tells me that your lender isn't really well versed on the subject. My sincere advice is to start all over with everyone. While I agree with your realtor that 10,000 is too much to pay, it is not professional to say your lender is incompetent and vice versa. Lenders do not tell realtors how to show you a home and write out a contract, and realtors should not tell lenders (or the buyers) how to put a loan together. Telling you that no one will pay 10,000 in closing costs is just saying to me that s/he is throwing her hands up and won't help you find a home. Four years ago we used to ask for 6% seller concessions on an FHA loan. 3% went to the down payment and 3% went to closing costs. If my buyers had a realtor that told them that it was too much and they would never get an offer accepted, my buyers would find a new realtor that was willing to work with them and close on a home with their 6% concessions. The realtors that didn't want to do the work lost out on the commissions. Sounds like that is what is happening here. If you were asking for 10,000 in closing costs you may have had a few offers rejected and your realtor may have had to do more work and s/he wasn't comfortable with that. You should be working with a realtor who has always worked with government loans and understands how to push a good offer with concessions.
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While there is a wide variety of loans for you to choose from to pay for your new home, if you can qualify for no money down loans, you will appreciate getting into your home at a much more affordable price. Some of these kinds of loans are known as 100% VA loans, which are designed as incentives for veterans of the armed forces. Therefore, if you have served in the armed forces or the National Guard for long enough, you should certainly get in touch with a VA mortgage lender to discuss the possibility of you benefiting from zero down home loans. Here are the basic benefits of working with a VA lender to get your loan.
First is the fact that you can appreciate the lowest interest rates available on the market today. Such no money down loans with low rates are reserved strictly for the brave veterans who have served their country. Unlike conventional lenders, a VA mortgage lender will not determine your interest rate based on your credit score. Consider that if your score is 650, your VA lender will give you the rate that someone with a score of 780 might expect to receive. Currently, 100% VA loans have interest rates hovering around 4.5%.
Next, the seller can pay the closing costs. Add this to the fact that you have zero down home loans at your disposal, and you could get into your home practically for free! The way this works is that the seller will pay up to 4% of the purchase price on the home in closing costs. This means if your home cost $ 200,000, the seller could pay $ 8,000 in closing costs. Since you can get 100% VA loans, you literally could get you and your family into a home without a penny spent.
Last, you are not required to pay Private Mortgage Insurance, a benefit that could save you $ 25 to $ 250 per month, depending on the size of your loan. If you want to appreciate all these benefits and more from no money down loans, you truly need to get in touch with a VA mortgage lender. Speaking with a knowledgeable VA lender will be imperative to discovering the size of loan you qualify for. If you are a veteran, there is absolutely no reason not to check out zero down home loans in the form of 100% VA loans. Related No Money Down Loans With A Va Mortgage Lender Issues
