First step towards homeowners, again!

[markseven]

Steps up to the mic.

Actually, it's 20% equity, not principle. So it might be worth it to hire another appraiser to see if the value of the property is higher than appraised.

At the very least, ask the lender to justify the difference between the two numbers. It's in the interest of the bank to get you to pay PMI.

Fight for a better appraised value. Worse case scenario is you get an independent appraisal and give it to the lender showing you have equity already.

To beat PMI, you will need an appraised value of $231,250. But having them adjust the LTV on their records with a good appraisal changes when their PMI falls off.

Sent from my XT1575 using Tapatalk

Okay, so I have a reason to PM you today

I will bow out now

[marshallnoise]

Okay, so I have a reason to PM you today

I will bow out now

Haha, all info is good for discussion. And that's racist. :devil:

[jeffnhiscars]

With all due respect there is a bit of misinformation here.

Appraisals are part art part science however there are a range of checks and balances to (hopefully) keep the playing field level. Lenders have no direct contact with the individual appraiser but rather they are ordered through a 3rd party appraisal management company (amc) who then in turn picks the appraiser. I have a friend o owns a very large amc and he says they have a formula for assigning them. The borrower knows who the actual appraiser is before the lender does and it is illegal for a lender to have direct contact with an appraiser at any point.

Once the report is done,mthe amc does an internal quality revie befor it goes to the lender who then does their own review. Besides comparing it to an arv there ar some pretty sophisticated risk algorithm that indicate the reliability of the report and that score def relates to the specific loan. Ie...if you are borrowing 95% of purchase price, I suspect the reliability factor needs to b higher than if you are borrowing 65%.

As for pmi, with Fannie and Freddie you have to pay the principal,down to 78% of the appraised value ANDwait at least 2 years. For FHA the pmi is now life of loan in most cases so you'd have to refi to get rid of it. At 85% loan to value lender paid pmi is worth considering. It's built in to your rate so you can't get rid of it but is actually cheaper than borrower paid pmi with the added benefit that you can pretend it's not there :)

Mortgage aplocations are run through several databases including the people involved in the transaction on government loans, lexis nexis, credit inquiry monitoring (so if anyone pulls yr credit while your application is pending the lend will know) etc etc

It has become very tough to game the system.

Ps I'm not aware of an avm ever being accepted for a purchase.

[markseven]

With all due respect there is a bit of misinformation here.

Appraisals are part art part science however there are a range of checks and balances to (hopefully) keep the playing field level. Lenders have no direct contact with the individual appraiser but rather they are ordered through a 3rd party appraisal management company (amc) who then in turn picks the appraiser. I have a friend o owns a very large amc and he says they have a formula for assigning them. The borrower knows who the actual appraiser is before the lender does and it is illegal for a lender to have direct contact with an appraiser at any point.

Once the report is done,mthe amc does an internal quality revie befor it goes to the lender who then does their own review. Besides comparing it to an arv there ar some pretty sophisticated risk algorithm that indicate the reliability of the report and that score def relates to the specific loan. Ie...if you are borrowing 95% of purchase price, I suspect the reliability factor needs to b higher than if you are borrowing 65%.

As for pmi, with Fannie and Freddie you have to pay the principal,down to 78% of the appraised value ANDwait at least 2 years. For FHA the pmi is now life of loan in most cases so you'd have to refi to get rid of it. At 85% loan to value lender paid pmi is worth considering. It's built in to your rate so you can't get rid of it but is actually cheaper than borrower paid pmi with the added benefit that you can pretend it's not there :)

Mortgage aplocations are run through several databases including the people involved in the transaction on government loans, lexis nexis, credit inquiry monitoring (so if anyone pulls yr credit while your application is pending the lend will know) etc etc

It has become very tough to game the system.

Ps I'm not aware of an avm ever being accepted for a purchase.

Bolded parts above are how I thought the systems worked as well (I was mistaken with the 80% PMI drop-off threshold).

[jeffnhiscars]

With Fannie/Freddie after 2 years you can actually have a ne appraisal done and try to remove pmi based on that.

I haven't been through this thread in detail, but

A) you cannot shop for an appraiser. If you disagree with the value you can appeal but that requires that you provide additional comps and not just that your bathroom is new or you installed granite counters.ntypically they will want MLS numbers for the extra comps and asking for a ne appraisal is not going to happen. It's considered gaming the system

B) if you are buying a house you've been renting, the math changes deposing on how long you've been there, what type of loan you are seeking and whether you are closing from an Contract for Deed or Lease Option.

Point being, there are so many nuances that each situation really becomes unique and requires a hands on understanding of the mechanics of getting them closed while staying out of jail :)

I'll also add that your lender has ZERO participation in pmi. It is required under federal regs so if you need it you need it and its provided again by a third party. I know the banks ar the boogeyman to some and I'm not here to defend them. Just trying to keep it factual

[Exodus_2pt0]

Oh, don't get it wrong.

I love my bank. Im going the conventional route through my credit union, of which I've been a member for 12 years. I've had multiple auto and personal loans through them in that time, never a bad experience.

It seems like this is fairly common, not a big deal.

The only thing that's hurting is we are paying closing costs, which is eating up 2/3 of what we have for a down payment. So only about 6k is going to principle off the bat.

No worries though, just incentive to pay it down faster.

[jeffnhiscars]

For future reference, as long as your appraisal comes in high enough you could have contracted at a higher pric and asked the seller to cover your closing costs. Then your loan would be higher with less out of pocket and the seller still gets thier cash ;)

[Exodus_2pt0]

Need some advice!

Just got a call from my bank. The PMI was denied, due to my Foreclosure that was over 5 years go. He said he is going to try to"rework" the loan, and I am going to write a letter explaining the situation with the foreclosure.

I'm pretty frustrated, jumped through all these hoops, just to hear this 2 weeks before closing.

Thoughts? I'm about to start calling some other financial institutions.

Can I use my appraisal that I just received with another lender? Or am I already getting ahead of myself. I'm paying closing costs, and there is no way I can cover 20% to get rid of the PMI all together.

Fucking foreclosure was over 5 years ago, this is ridiculous.

[Exodus_2pt0]

Just spoke with my loan officer again.

He's going to put together a dual loan 80/10, and see if he can get an exception to do an 80/15 for us.

In his words, he believes he can make it happen without coming up with any more cash. At worst, I ask the seller to help with closing costs. I hate asking, but I work with the seller and he has told me from the beginning that if I run into any issues that he will work with me to get it done.

Fingers crossed, my day is fucked.

[george graves]

I know that feeling - like your sitting on pins and needles.

[Kershaw]

Can you buy out your PMI for 1% of the loan? That's what I did. $133k loan, PMI would have been $100/month. I bought it out for $1330. It was a no brainer.

[Exodus_2pt0]

Called back and asked, that's a negative since they are just refusing to insure it.

Hopefully the combo loan will come through, from the sounds of it it's a better option anyway.

This is also getting them to eliminate my points, so there's that as well. Here's to hoping it doesn't come at a cost of a higher rate.

[TimeMachinE30]

Did you ever contact the loan guy I recommended? I'm telling you Ryan is a professional. Long time running, worked his way to running the place.


With that, it was mentioned earlier...negotiate a higher sell price, sellers pay your closing costs with that. Only good if it appraises of course for higher amount.

[jeffnhiscars]

Is there a reason you can't go FHA (other than that your CU may not write them) who has far easier qualifying requirements or USDA ($0 down) ?

It sounds like they did a conforming appraisal which technically belongs to the lender who ordered it and cannot be transferred. It could be converted to an FHA report (for a fee) if you go that route instead and can also then be transferred to another lender. VA valuations can also be transferred.

[jeffnhiscars]

Can you buy out your PMI for 1% of the loan? That's what I did. $133k loan, PMI would have been $100/month. I bought it out for $1330. It was a no brainer.

You don't actually "buy out" of it. Rather than paying it monthly, you do a single premium pmi which could have been 1% (it can vary on each loan). So borrower paid monthly (what most people think of) , borrower paid single premium up front or lender paid with a higher interest rate.

There are also a handful of pmi providers and they can have differnt criteria. Some lenders also underwrote it In house so it's one decision on both the loan and pmi (one advantage of a larger lender) and you pretty much know at application if thes going to be a challenge

There's should be a work around for a 5 yo foreclosure