Just signed on our first house (PICS INSIDE)

[momeNt]

I have all of the closing costs disclosed by the lender and have had them since day one on a pre-approval, but never an APR. We went over the closing costs meticulously yesterday, line by line for my exact loan amount. With the closing costs known, and getting a credit back from the seller, you guys are WAY overreacting that APR is a big issue, driving me insane thinking I'm going to get royally screwed which I do not think is going to happen. I have all of my paperwork in front of me. So it's my fault they didn't give me all the information needed on APR?

APR is a calculation based on the closing costs and fees that go into obtaining the loan.

If you have went over the closing costs and are okay with it, and have looked at a cost benefit analysis concerning the points you bought and are happy with that (which is hardly the case unless you are going to stay there for the whole life or nearly all of the life of the loan). Then you don't need to be concerned about the APR, because you've essentially already analyzed it. APR is just a metric to help you compare apples to apples.

 

[GT1999]

I have not received a GFE yet. They said it'll be in the mail. I don't have time for that though, so they're going to call me with the information and most likely I'll pick it up tomorrow.

Don't just go assuming I received my GFE/APR info... otherwise I would know what it is. I just emailed them the contract yesterday.

You guys are stressing me the fuck out over something that's going to be fine. Especially you, vdub. Chill out or you'll end up on my ignore list. I only have one other person on there so I don't exactly like adding people to it.

 

[Tweak155]

I have all of the closing costs disclosed by the lender and have had them since day one on a pre-approval, but never an APR. We went over the closing costs meticulously yesterday, line by line for my exact loan amount. With the closing costs known, and getting a credit back from the seller, you guys are WAY overreacting that APR is a big issue, driving me insane thinking I'm going to get royally screwed which I do not think is going to happen. I have all of my paperwork in front of me. So it's my fault they didn't give me all the information needed on APR?

By law they have to provide the APR to you without you requesting it. I'd be pissed unless you think there is a chance you just weren't paying attention.

You should have received a good faith estimate. If it isn't on there, I'd steer clear.

In simple terms - the APR is the "effective" interest rate when taking into consideration any fees rolled into the loan. So if your closings costs were $10k but were rolled into the loan, you're now paying interest on a larger sum than you requested a loan for, and therefor the interest paid is increased due to being calculated on a larger sum.

In all, if you were satisfied with the fees being charged, the APR is unavoidable from any lender other than paying the fees up front. So you need to be comfortable with what they're charging you.

 

[iRONic]

I have not received a GFE yet. They said it'll be in the mail. I don't have time for that though, so they're going to call me with the information and most likely I'll pick it up tomorrow.

Don't just go assuming I received my GFE/APR info... otherwise I would know what it is.

You guys are stressing me the fuck out over something that's going to be fine. Especially you, vdub. Chill out or you'll end up on my ignore list. I only have one other person on there so I don't exactly like adding people to it.

Whoa... Dude's trying to help you out and you go off on him...?

You're fucked up.

 

[iRONic]

Just buy the fucking house. Ask the bank for a number and write 'em a check.

Do. It. Now.

 

[momeNt]

Just buy the fucking house. Ask the bank for a number and write 'em a check.

Do. It. Now.

You chill out now.

OP, they are just trying to make sure you are shopping for a good price, different banks have different fees, and in the end you can end for a loan like yours you could end up paying quite a bit extra. APR allows you to shop around and compare loans quickly, but even then you should look to see how they are calculating APR.

If you are happy with your bank and don't want to shop and also maybe don't mind paying a couple hundred or thousand extra bucks, then that's the price you pay for not shopping but that's entirely up to you.

They aren't going about this the right way, but they are just letting you know that it may help if you do your own due diligence and take a good look at the numbers and shop around.

 

[Vdubchaos]

You guys are stressing me the fuck out over something that's going to be fine. Especially you, vdub. Chill out or you'll end up on my ignore list. I only have one other person on there so I don't exactly like adding people to it.

You think I care? :biggrin:

You have your priorities backwards.

You treat people that have 0 interest in your money/try to help you like they are your enemy.

And people that you should not trust (banks/Lenders etc) like they are your friend/have your best interest.

Good luck

 

[Rudee]

House doesn't have very nice curb appeal from the outside, that's for sure. The inside looks nice though. Still seems very pricey for Chicago though. As long as you're happy.

 

[GT1999]

Per my lender we officially did not get a GFE because we only locked in yesterday. So vdub, go take a xanax now. I am going through the GFE at the branch in about 30 minutes.

THERE ARE NO POINTS

3.25 is FIXED

I'm out.

 

[Tweak155]

Per my lender we officially did not get a GFE because we only locked in yesterday. So vdub, go take a xanax now. I am going through the GFE at the branch in about 30 minutes.

THERE ARE NO POINTS

3.25 is FIXED

I'm out.

I'm not sure why you think this is a good thing. A GFE should be given prior to locking or signing anything, otherwise wtf is the point of the GFE?

If you can still back out, I suppose there is no difference. But I have been receiving GFE's just from asking about rates and supplying details of the purchase. This makes much more sense.

 

[Vdubchaos]

I'm not sure why you think this is a good thing. A GFE should be given prior to locking or signing anything, otherwise wtf is the point of the GFE?

If you can still back out, I suppose there is no difference. But I have been receiving GFE's just from asking about rates and supplying details of the purchase. This makes much more sense.

:biggrin:

He clearly doesn't get it.

And still has no clue what APR is.

:biggrin::biggrin::biggrin:

Way to shop around. I'm glad your lender restored your faith/trust.

:biggrin:

You know what I say, whatever floats that boat. More power to his lender.

 

[Red Squirrel]

Congrats on the house! Always exciting to know you own it and it's yours!

 

[lupi]

so, we're now up to bad house (unless you plan on living in the basement) and bad loan, yummy.

 

[T_Yamamoto]

Very nice looking house. All stainless steel appliances. That man cave. Nice

 

[jagec]

You guys are stressing me the fuck out over something that's going to be fine. Especially you, vdub. Chill out or you'll end up on my ignore list. I only have one other person on there so I don't exactly like adding people to it.

What does "stressing out" matter in the grand scheme of things? Switch off your emotions when buying homes, and compare the NUMBERS and FACTS.

 

[RapidSnail]

I'm not sure why you think this is a good thing. A GFE should be given prior to locking or signing anything, otherwise wtf is the point of the GFE?

If you can still back out, I suppose there is no difference. But I have been receiving GFE's just from asking about rates and supplying details of the purchase. This makes much more sense.

I won't be interested in purchasing my own house for a while, but after a quick search for GFE and APR, I am thinking exactly what you're thinking.

The purpose of a good faith estimate, as I understand, is to be able to examine all fees associated with establishing and closing a loan, and possibly compare that GFE with one from another lender. And APR is a way of including closing costs as part of the loan so that the borrower can get a better idea of what he would actually be paying to lender.

Essentially these tools allow a borrower to evaluate lenders for the best loan available for him before closing the contract. Therefore, I am not sure what good a GFE or APR quote would do if you've already locked into a contract.

Good luck GT!

 

[monkey333]

Um, not sure you did you math right.
Man cave + drop ceiling = projector...

 

[postmortemIA]

since FHA loan has two insurance premium, one upfront cost, UFMIP, and other one, MIP, that you will keep paying. Without APR number you don't know what kind of deal you got. My guess your APR is close to 5% due to these two insurance premiums.

My PMI on $200K conventional loan was about $75. Yours is a lot higher, and essentially it makes your interest rate be closer to 5%.

 

[GT1999]

Got our GFE and still no APR!!!!

Closing costs:

Origination Charge $995
Appraisal Fee (FHA) $400
flood Certification $11
Credit Report Fee $10
FHA MIP $4221
Sub total $4642

Title services and lenders title insurance $1645
Owners title insurance $1195
Pest inspection fee $85
Government recording charges $115
Transfer taxes $0
Initial deposit for your escrow account $2749.99
Daily interest charges $349 ($21.86 per day if settlement is on 8/16/12)
Homeowners Insurance (Hazard Insurance Premium) $1000
Settlement subtotal: $11,782

Grand Total: $12,777.59

 

[Tweak155]

Got our GFE and still no APR!!!!

Closing costs:

Origination Charge $995
Appraisal Fee (FHA) $400
flood Certification $11
Credit Report Fee $10
FHA MIP $4221
Sub total $4642

Title services and lenders title insurance $1645
Owners title insurance $1195
Pest inspection fee $85
Government recording charges $115
Transfer taxes $0
Initial deposit for your escrow account $2749.99
Daily interest charges $349 ($21.86 per day if settlement is on 8/16/12)
Homeowners Insurance (Hazard Insurance Premium) $1000
Settlement subtotal: $11,782

Grand Total: $12,777.59

Wow... The last GFE I got for my $185k house was a hair over $5000. I'm sure fees on FHA are different but nearly double when the house is about 25% more? I don't know enough.

EDIT

And my taxes are only slightly lower... About $2400.

 

[GT1999]

Just switched lenders. Our original lender was crap. We are now getting a $1000 credit with a 3.25% fixed rate. The $1000 will negate an origination charge.

Total closing costs will be not much more than the down payment of 7xxx due to all the credits and a tax credit from the seller.

APR is not necessary as long as all closing costs are disclosed on the GFE.

Another reason we are switching lenders, not just because we are getting a free'credit of $1000 is because this lender is saying they will have it done before closing, while our original big bank could not guarantee it.

 

[Vdubchaos]

Big banks are notorious for taking their sweet time on closing (at times taking MONTHS)

That origination fee = rapage

You want to keep your closing costs down to about 3% of the house value.

At 5%-6% original lender was trying to rape you.....

Shop around, compare compare compare. Start a spreadsheet.

I'm sure you learned a good $1000 lesson, but I think you will be glad you went with another lender.

 

[GT1999]

It's now $1300 due to the lender being close friends with our realtor (who might I add is the BOMB). This guy has drinks with my future MIL and they are church buddies. Very confident this time around.

Home inspection in 2.5 hours, I'm bringing my handyman dad.

 

[OILFIELDTRASH]

In Texas you'd be living in a 2500 sq ft house on an acre of land for that price.
It is a pretty house though. Good luck.

 

[melly]

Pretty pics. Good luck with the new home! I wish houses in Toronto were that cheap!