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pre-approval costs -impact of credit score


movingforward
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first off, hats of to this forum and credit info center. i've been lurking quietly since last june and my credit score have increased significantly.

pardon the detail, i figure the more info i give the more useful input i amy receive in return...

CR (according to CW)

EFX- 629

TUC-664

XPN-673

The negative marks on my credit that could be removed, have been however there are three collection/chargeoffs that i have paid off that have come into question for further explanation. none of my debt was significant however i was irresponsible in the late nineties which has scoffed up my CR. ALL negative items will dissapear by next summer at the latest.

AVG 2 yr Income: $60k (salary/commssion)

05' I am above 20k in compensation through February

another commission check due tomorrow for at least $4-$5k

i have 2 credit cards w/a total limit of $1000 (total balance under $200)

(1) joint card $35k limit (balance around $624)

no car payment and no other loans. (this is where my lack of credit histoery hurts as i've paid cash for all cars since a $7200 car loan paid off in Y2k w/one 60 day late payment)

i'm currently working on pre-approval for a "pre-construction condo" in philly @ 169,9k. i am also reviewing several more properties on saturday in the $170 to $190k range.

in doing so, a rep @(CW) has put together two .pdf "cost estimates" for a $190k mortgage.

one is FHA ther being "30 yr Conv. Unnisured" (I have no idea what this means).

in reviewing this cost estimate i'm attemtping to decipher red flags in the settlement estimates.

What should I be looking for? specifically, what line item typically shows "points"

ALSO can anyone tell what a "State Tax Stamp" is? its appears to be very costly. i google the term and found nothing.

any feedback on the above as well as what my expecations as far as approval/fair interest rates would be greatly appreciated...

is it true that many seller's are resistent to working with FHA buyer's....

thanks,

m.f.

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To answer some of your questions, but not in order:

PA tax stamp. It is 2%, normally split between the buyer and seller

FHA requires the property to be in better shape than other lenders. If you remember that all the lender wants to know is that they are going to get their money back in payments on time, or that they will come out OK if the payments are not made and the home goes into foreclosure. FHA wants to make sure that the property is in wonderful condition to lessen their risk.

FHA closing costs will be a bit higher, as there is a MIP that is included, 1.5% of the loan amount. (and if the loan is over 80%, you pay an additional .25% per month until the loan amount is 78% of the sales price.)

Loan Origination fee is 801. Discount fee (to buy down the rate) is 802.

Charles

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To answer some of your questions, but not in order:

PA tax stamp. It is 2%, normally split between the buyer and seller

FHA requires the property to be in better shape than other lenders. If you remember that all the lender wants to know is that they are going to get their money back in payments on time, or that they will come out OK if the payments are not made and the home goes into foreclosure. FHA wants to make sure that the property is in wonderful condition to lessen their risk.

FHA closing costs will be a bit higher, as there is a MIP that is included, 1.5% of the loan amount. (and if the loan is over 80%, you pay an additional .25% per month until the loan amount is 78% of the sales price.)

Loan Origination fee is 801. Discount fee (to buy down the rate) is 802.

Charles

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