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100% Loan Question


JAMTAMASH
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Hi, I have been lurking for a about a year. FICO for DH and myself have improved approx 100 pnts per report in the past year. We are looking to sell and buy another house this fall. We have outgrown our 1,000 sq house and want twice the size. We are both around 620's for middle score but I want to raise above 640 by fall.

My question is: When you are speaking about 100% financing does that mean you need no money down at all or do you still need the first year of taxes and insurance.

Thanks for any replies.

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It is good you are monitoring your credit score. If you not doing so now, you should start putting 1/12th of a payment extra into your exisitng mortgage payment. Doing this over a 4 to 6 month period. I have seen borrowers credit score rise.

The term 100% financing on conforming loans means you are incorporating the bank charges into the loan. It does not include taxes, title, escrows, and other closing fees.

Somethings there are sellers concessions and grants, that will be counted as earnest money. That can be applied toward closing costs.

.......:)

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anytime you put a contract on a house always have your realtor ask for a certain percentage of the sale price to be used towards closing costs. Your realtor should know how to word this in the contract. If they don't then you need a new realtor! 4-6% of the sale price is usually enough to cover most of the closing/origination fees that will be incureed

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When I purchased my home 2 years ago I had to pay about $4k out of pocket for closing costs. Sometimes, you can get the seller to pay closing costs, especially in this market, but at the time I bought it was a sellers market so I paid them because I wanted the house. Someone has to pay for the appraisal, inspection, title search, points, filing fees and stuff like that.

The real costs come once you're in the house - for example, I needed a new refrigerator since I was renting - and you can go through cash quickly. I told my brother this when he bought last year...he didn't believe me at the time, but he does now! You'll spend a lot on new furniture and accessories (I live at Target and Home Depot) just because you'll want your place to look nice. I probably spent $3-5k in the first few months that I was in the house.

Since you're prepping, I'll give you a little advice: watch your revolving credit closely, as this can really impact your score. If you aren't already, keep your utilization as low as possible. The biggest factor in FICO scoring is revolving credit, so make sure yours is pristine.

________

Kid prilosec

Edited by kevin3344
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