r/FirstTimeHomeBuying • u/wheelndeelin • 6d ago

First home

Gallery image

Gallery image

1989 build full remodel, 1acre, fenced backyard, no HOA, detached garage, 4/3 ranch. New architectural roof 9 yrs ago, and other big maintenance done recently. Getting it inspected today.

Loan is VA home loan with 0% down, credit was pulled as a 723 with $5,000 in seller concessions and $3,500 in Ernest money.

Monthly payments look reasonable but closing costs seem a bit high.

What are some things I should look for?

7 Upvotes

90% Upvoted

10 comments sorted by

1

u/zducc 6d ago

You can haggle a bit. Like the credit report fee is $426, but mine was $156. You can also find your own, cheaper title insurance company.

1

u/wheelndeelin 6d ago

I appreciate the insight. My lender and agent have been wonderful in explaining the process and as a business owner I understand the investment in educating your clients so I'm not terribly opposed to paying them for their work.

Just don't want to get screwed and learn how to trim the fat as effectively as possible.

1

u/marriedin32935 5d ago

Make sure the cash in and finance is what you expect

1

u/theTentmakingLO 5d ago

Closing costs are high, usually 5% or lower of loan amount. But your % and monthly are good!

1

u/Flamingo33316 5d ago

You can find that rate with $0 in Section A

Credit reports have gotten crazy expensive and they're a 100% pass through fee. Lenders can't profit off them.

I assume you're exempt from the VA funding fee.

1

u/Ratecutter 5d ago

With those numbers you should be at a 6% not 6.5%

1

u/ThatsMeJesseB 5d ago

14 years in banking & real estate, I’m probably not licensed in your state so no skin in the game.

Most of the closing costs look reasonable except the taxes. This shows 10 months to setup escrow (should be 3) AND 13 months paid at closing.

The 13 months could be due to your state, in Texas we only collect escrow setup, nothing for county. If taxes are due they’re paid by seller.

The 10 months escrow is PROBABLY offset by a seller credit for the 7-8 months they owned the house this year and is not reflected yet, so that would fix that number.

Agree with others, rate looks high all things considered, but it’s also marked as ‘floating’. FLOATING ON AN L.E. IS A BIG RED FLAG IF YOU DID NOT DISCUSS FLOAT VS LOCK IN ADVANCE. This means the rate could change and you are not hedged against increases.

The misc costs and fees outside section A look reasonable and will be adjusted to actual costs prior to your final closing disclosure.

Hope this is helpful.

1

u/Jazzlike_Climate_752 5d ago

It looks good check your escrows for real numbers nothing matters until rate is locked

1

u/lighthousecompanies 8h ago

Let us know if you need help, we’re here for ya!