Misfitmorgan's Journal - That Summer Dust

[babsbag]

I had a lot of new inquiries on my credit when we did the refi on our place and as long as they knew that we were mortgage shopping they were ok with that.

I get it now about the escrow account...we have an impound account too that pays our taxes and insurance every year, that is why I was asking.

Hope you find a lender, and that is just crazy that banks won't finance below a certain amount, that is just wrong in my mind. I seem to recall that Fannie Mae sets the maximum loan amount but the lender sets the minimum.

 

[babsbag]

I had a lot of new inquiries on my credit when we did the refi on our place and as long as they knew that we were mortgage shopping they were ok with that.

I get it now about the escrow account...we have an impound account too that pays our taxes and insurance every year, that is why I was asking.

Hope you find a lender, and that is just crazy that banks won't finance below a certain amount, that is just wrong in my mind. I seem to recall that Fannie Mae sets the maximum loan amount but the lender sets the minimum.

 

[misfitmorgan]

I know it is wrong and crazy which is why things like FHA and USDA were set up because a lot of people can't afford to buy houses over 60K. Where we live you can buy a really nice house...with a large lot(no acreage) for 40k easily but how many people have 40k laying around and only want to buy a 40k house...not many. If they were able to save 40k they wanna buy a 180-200k house.

Definitely sucks, i am not sure why the seller wants us to do conventional it makes no sense to me. FHA can close in 30 days i have had 2 banks tell me and i can't think of another reason except......Taxes are issued in July here lol. Far as i know they would be required to pay the taxes and then would be out that money because it isnt in the offer, so we would basically get 6 months of free taxes. Even that seems silly though because the tax bill is only $465 for this bill.

 

[Mike CHS]

I am no expert but FHA has more inspection requirements than a conventional loan so that may be the reason. That might also be a reason for you to make sure you have access to an inspection before committing to the loan.

 

[misfitmorgan]

Yeah i know FHA is harder with inspection but there is nothing wrong with the place that they normally want fixed. We do plan on having an inspection, I've already called the guy to come and do it as soon as we get the acceptance offer. Atm we are waiting on them to tell us who to make the Ernest money check out too. Normally it would go to the sellers realtor but this time it is different....maybe because it is Freddie Mac itself selling, i dunno.

 

[Bruce]

It is very normal for "prepaid" things like property taxes to be prorated and paid by the buyer. I don't know what they are in your neck of the woods but taxes "just paid" here (if they are paid once a year) would near what you are talking for the low end of your closing costs. No seller is going to eat that just because of timing.

One thing to look out for - the city isn't going to issue a new tax bill in your name until the next regular cycle. This bit me on my first house. I ASSUMED I would get a bill in my name for the next (2nd of 3 for the fiscal year) payment and ended up being late (yes penalties and interest).

 

[misfitmorgan]

We only have 2 tax bills here. Summer taxes and winter taxes, summer taxes are always way more. Summer 2016 was $465 Winter 2016 was $127. So less then $600...for the year. We do not have city taxes here.

 

[Baymule]

Summer taxes and winter taxes? Huh? I must be stupid, I just don't get it.

We have property taxes based on valuation (always more than what you could actually sell it for) and in some locations, a tax for a state college, in cities there can be a city tax and school tax.

 

[babsbag]

We have one tax and it is split in two payments, one in April and one in Dec. and they are equal payments. Our taxes are based on the last selling price and they aren't allowed to reappraise until the next sale. There are sometimes special school and fire taxes added in. When the bottom fell out of the market in 2008 they actually lowered taxes on many properties in CA.

 

[Baymule]

We have one tax and it is split in two payments, one in April and one in Dec. and they are equal payments. Our taxes are based on the last selling price and they aren't allowed to reappraise until the next sale. There are sometimes special school and fire taxes added in. When the bottom fell out of the market in 2008 they actually lowered taxes on many properties in CA.

Well, that clears it up!