All Encompassing Mortgage and Real Estate Thread

[Dbeasy 15224]

On 4/12/2021 at 10:44 AM, CHIEF said:

I prefer that a client sees the property in person before putting in an offer. We are starting to see crazy offers and terms out here 45 minutes from DFW. The new terms seem to be moving to no option period, waving inspections, 3% escrow, buyer pays for a survey, appraisal, closing costs, and title policy. Buyers are giving the seller 30-60 day leasebacks to find a new home. The seller is basically out nothing. Cash is King. Commissions are still 5-6%, will do it for 4% if we get to be your buyer agent on your next purchase. This is the most money I have ever made, but I'm rat holing it. My Mother is my broker, so it is only she and I, and we home office, with little to no overhead. We have sold 28 homes since January. 

CHIEF

Yup I’ll potentially do a 4% deal for friends or friends of friends, etc. 

[CHIEF 5096]

1 hour ago, Lobo said:

I think that's the opening line to their adult film.  

but in all seriousness, they all know 50 mortgage brokers, 50 title companies, 50 bankers, 50 lenders, 50 attorneys, 50 insurance reps, and the name of a guy who makes really nice custom pens and calendars.  But none of 'em actually give a shit about the interior workings of a home.  I crack up because before Covid, we'd get a knock on the door every single weekend from a realtor who is "repping" a client who wants to buy our house. 

For shits 'n grins, I'd say, "well, write us up an offer with a disruption premium and we'll take a serious look at it." 

And they'd push back with the same line, "Well, I can send it over to your agent after we take all the necessary steps.  Who represents you?"

And then me, in a nice way I promise, "Hey asshole, you're knocking on my door on a Sunday morning.  I'm hungover with shorts and a ballcap on.  You know my house isn't on the market.  So I have no realtor, Einstein.  Your client wants my house, come back with a written offer or fuck off.  Do your fucking job.  

Obviously between my attitude and Covid-19, our home is no longer actively sought.  Although I do get the sense that things are ticking back up again in the area.  But as we always talk about on this thread, sure the home value is great and we'd cash out with generous equity.  But there's nowhere to go.  I guess I need to start awkwardly knocking on doors on neighborhoods we could relocate to.  But I like close-in South Austin and I like our school district. 

There's no inventory, I don't know what the fuck buying agents are doing to justify themselves.  If I were one, I'd shake things up and try something new.  Walk the blocks of the neighborhoods your clients want to buy into and introduce yourself like GRhorn would, "Hello, I'm a convicted sex offender and I'm required to inform you of my residence in your neighborhood."  Then after they're done freaking out, you say, "Nah, just kidding.  I'm a realtor with Keller Williams and my clients love your street.  See, this isn't so bad now, is it?"  

 

 

I'm a home builder as well. I can count the number of non-flaky subs, I know, out of the 30-40 I have had dealings with that will show up when they say, and get the job done without delays on one hand. We have lists of all of the inspectors, plumbers, electricians, drywall, roofing, and septic contractors, etc.  A list of appraisers, mortgage companies, construction and bridge loan officers. But my broker (Mom) has made it perfectly clear you give them the list but make no recommendations off of them. That way, if something goes awry, clients can't get mad at you and blame you for a recommendation. There have been instances of realtors getting dragged into litigation over a recommendation. We explain it to our client's, and tell them they can look on our local social media sites for recommendations.

CHIEF

[CHIEF 5096]

20 minutes ago, Dbeasy said:

Yup I’ll potentially do a 4% deal for friends or friends of friends, etc. 

We did one of those this weekend. But the story gets even better. We listed a couple's river home for 4%, my mother acted as their buyer agent on another house on the golf course. The contract fell through for $567k on their river house, the guy is a long tenured pilot for American, so he was able to close on the golf course house before the closing on his river house. So the river house goes back on the market for $575k on Thursday. We had 4 offers by Sunday afternoon. I had a client that just absolutely loved it. I told him I had sold houses for as much as $25k-30k over asking. He bid $604k, and won the bid. So, now, instead of making 1% on the river house, we will make 4%, with me acting as Intermediary.

CHIEF

Edited April 20, 2021 by CHIEF
punkchewashun

[Gil Bang 26099]

2 hours ago, UTPhil2006 said:

15 years in the 2.25% range for those who were dabbling in 15's before

How about CONV 30 year?

[Gil Bang 26099]

Forgive me, as  I can't remember who lives where. 

Is there a Houston agent in this tread?   An agent in my office is looking for a Houston agent for a referral. 

[UTPhil2006 3828]

1 minute ago, Gil Bang said:

Forgive me, as  I can't remember who lives where. 

Is there a Houston agent in this tread?   An agent in my office is looking for a Houston agent for a referral. 

We are yes (you can email me at phil@reihomerealty.com)..  and 30 year hovering between 2.75 and 2.875 and jumbo just a hair higher.

[Guest Lobo]

At what dollar amount does a conventional become a jumbo?  Not asking for me, we can't afford to move until I'm dead or the kids are in college.  But curious what the industry benchmark is.

[UTPhil2006 3828]

In Texas, $548,250

[Gil Bang 26099]

In Texas, $548,250

A hair north of 750,000 out here.

[Horns99 170]

Closing on my Refi tomorrow & going over the closing fees. Couple questions for the people in the know on this stuff- they have stuck a fee of $350 for a escrow fee to the title company ( this was not in the loan estimate docs, nor did I have to pay that fee when I did the original purchase. Is it a legit fee?

How about the Tax Cert to the Title Co $86.50

Thanks


Sent from my iPhone using Tapatalk

[immamac 43554]

4 minutes ago, Horns99 said:

Closing on my Refi tomorrow & going over the closing fees. Couple questions for the people in the know on this stuff- they have stuck a fee of $350 for a escrow fee to the title company ( this was not in the loan estimate docs, nor did I have to pay that fee when I did the original purchase. Is it a legit fee?

How about the Tax Cert to the Title Co $86.50

Thanks


Sent from my iPhone using Tapatalk

Yes legit fees. 

[UTPhil2006 3828]

53 minutes ago, immamac said:

Yes legit fees. 

What he said. 

[Wulaw Horn 19232]

1 hour ago, Horns99 said:

Closing on my Refi tomorrow & going over the closing fees. Couple questions for the people in the know on this stuff- they have stuck a fee of $350 for a escrow fee to the title company ( this was not in the loan estimate docs, nor did I have to pay that fee when I did the original purchase. Is it a legit fee?

How about the Tax Cert to the Title Co $86.50

Thanks


Sent from my iPhone using Tapatalk

Legit- and 350 isn’t bad for an escrow fee for the title company depending upon your area. I’d guess 450-500 would be the most common fee typically for that. 86.50 for tax cert seems slightly high to me- ours were 60-75 forever It seemed but maybe that’s the new normal. It’s been a couple years since I looked. 

[LCHorn 2639]

1 hour ago, Horns99 said:

Closing on my Refi tomorrow & going over the closing fees. Couple questions for the people in the know on this stuff- they have stuck a fee of $350 for a escrow fee to the title company ( this was not in the loan estimate docs, nor did I have to pay that fee when I did the original purchase. Is it a legit fee?

How about the Tax Cert to the Title Co $86.50

Thanks


Sent from my iPhone using Tapatalk

Not only is it a legit fee, it's a finance charge and really should have been disclosed by the lender. 

I'm rusty on these since we don't handle our own disclosures any longer (we have a compliance team that does them), but I think they need provide a change of circumstance to add a fee that wasn't disclosed on the Loan Estimate.  If you've received a Closing Disclosure with the fee added but not previously disclosed then I'd look at the bottom of page 2 to see if they did an adjustment so that the lender is actually paying for it (this is somewhat hidden on the Closing Disclosure).  Either way, I'd bring it up with the lender. 

[Wulaw Horn 19232]

6 minutes ago, LCHorn said:

Not only is it a legit fee, it's a finance charge and really should have been disclosed by the lender. 

I'm rusty on these since we don't handle our own disclosures any longer (we have a compliance team that does them), but I think they need provide a change of circumstance to add a fee that wasn't disclosed on the Loan Estimate.  If you've received a Closing Disclosure with the fee added but not previously disclosed then I'd look at the bottom of page 2 to see if they did an adjustment so that the lender is actually paying for it (this is somewhat hidden on the Closing Disclosure).  Either way, I'd bring it up with the lender. 

That should be a bucket C- services you can shop around for fee- as long as the lenders not affiliated with the title company, right?  Not responsible for that fee, right?  
I mean- sure an escrow fee is customary but a title company could charge any dumbass fee they wanted and you wouldn’t necessarily know it was coming as a lender- right?  

[LCHorn 2639]

10 minutes ago, Wulaw Horn said:

That should be a bucket C- services you can shop around for fee- as long as the lenders not affiliated with the title company, right?  Not responsible for that fee, right?  
I mean- sure an escrow fee is customary but a title company could charge any dumbass fee they wanted and you wouldn’t necessarily know it was coming as a lender- right?  

I think the typical junk fees from the title co aren’t finance charges (courier fee, to reference one that’s common but not universal).  That said, my memory is hazy since the CFPB took away our old GFE’s and I’m not the one making or correcting the disclosures.  
 

I think it would be a clearer answer if the non-disclosed settlement fee resulted in an APR change of .125% or more.

[LCHorn 2639]

I’ll add that if a loan originator with most of my adulthood spent in the industry doesn’t know the answer for certain then it’s a great idea for the borrower to bring it up and keep their own originator honest.  

[UTPhil2006 3828]

11 hours ago, LCHorn said:

I’ll add that if a loan originator with most of my adulthood spent in the industry doesn’t know the answer for certain then it’s a great idea for the borrower to bring it up and keep their own originator honest.  

This

[South Austin 52686]

Just adding to the anecdotal evidence, my friend’s parents’ bought their house near Canyon Vista Middle School about 15-20 years ago for $365,000. After the dad died a year ago, the mom put the house on the market last weekend and before an open house got a cash offer for $1.4M. And because of some uber-favorable tax treatment, she’s going to pay next to nothing on the capital gains.

[CHIEF 5096]

38 minutes ago, South Austin said:

Just adding to the anecdotal evidence, my friend’s parents’ bought their house near Canyon Vista Middle School about 15-20 years ago for $365,000. After the dad died a year ago, the mom put the house on the market last weekend and before an open house got a cash offer for $1.4M. And because of some uber-favorable tax treatment, she’s going to pay next to nothing on the capital gains.

She probably did a 1031, which deferred the tax for 18 months. My parents have always done this. If she reinvests the $1.4M back into Real Estate, it just kicks the capital gains can down the road.

CHIEF

[bluto 4947]

You can 1031 your personal residence?

[Chewbacca 7793]

You can 1031 your personal residence?

No, you absolutely cannot.

[That Guy 971]

Anybody here deal with va loans? Selling house in Austin. Buyer provided appraisal waiver and specified conventional financing in original offer. They are now trying to switch to va financing on an updated 3rd party financing addendum. Based on the addendum the deal can be canceled if the va appraisal is less than the sales price penalty free which means I’d be out option and earnest money. Is that an accurate take on my part? 

[CHIEF 5096]

1 hour ago, Chewbacca said:

2 hours ago, bluto said:

You can 1031 your personal residence?

No, you absolutely cannot.

Yeah, I looked it up. It was two transactions, but both were considered farms/ranches, which was allowed when they did it back in the 70's and 80's. It's still allowed if the farm is your primary residence, but the residence and the farm land are treated differently. Not sure what vehicle can be used to avoid capital gains on that much money.

CHIEF

[bluto 4947]

Anybody here deal with va loans? Selling house in Austin. Buyer provided appraisal waiver and specified conventional financing in original offer. They are now trying to switch to va financing on an updated 3rd party financing addendum. Based on the addendum the deal can be canceled if the va appraisal is less than the sales price penalty free which means I’d be out option and earnest money. Is that an accurate take on my part? 

Had a VA offer higher than a conventional offer when I sold, my realtor told me to take the conventional. VA’s can be a total bitch to close per realtor.

[Chewbacca 7793]

Yeah, I looked it up. It was two transactions, but both were considered farms/ranches, which was allowed when they did it back in the 70's and 80's. It's still allowed if the farm is your primary residence, but the residence and the farm land are treated differently. Not sure what vehicle can be used to avoid capital gains on that much money.
CHIEF

I know of people who have done them on personal residences, but they know it is illegal and are banking on not getting caught. I'll pass on that one.

[Gil Bang 26099]

5 hours ago, bluto said:

Had a VA offer higher than a conventional offer when I sold, my realtor told me to take the conventional. VA’s can be a total bitch to close per realtor.

Your realtor is full of shit. 

I mean, sure, if your house isn't worth what they offered, and if your house is a piece of shit with deferred maintenance, broken windows, and a malfunctioning furnace. 

About 1/2 the deals I do are VA buyers,  and in my experience, VA and CONV close at about the same rate.

 

But, my "successful escrow" rate is higher than the average agent's

Edited April 22, 2021 by Gil Bang

[Gil Bang 26099]

5 hours ago, That Guy said:

Anybody here deal with va loans? Selling house in Austin. Buyer provided appraisal waiver and specified conventional financing in original offer. They are now trying to switch to va financing on an updated 3rd party financing addendum. Based on the addendum the deal can be canceled if the va appraisal is less than the sales price penalty free which means I’d be out option and earnest money. Is that an accurate take on my part? 

100% accurate.   In a hot market, there's no reason to allow the switch.

[Wulaw Horn 19232]

8 minutes ago, Gil Bang said:

Your realtor is full of shit. 

I mean, sure, if your house isn't worth what they offered, and if your house is a piece of shit with deferred maintenance, broken windows, and a malfunctioning furnace. 

About 1/2 the deals I do are VA buyers,  and in my experience, VA and CONV close at about the same rate.

 

But, my "successful escrow" rate is higher than the average agent's

I think that people just get really hung up on the non-allowables and extra shit like termite inspections and the like.  And the VA appraisal can obviously take a little longer.  But man- what a great loan- especially if there is any disability and they don't have to pay the funding fee.  

It makes me sad to know that there are MANY agents out there actively steering sellers away from veterans.  It's pretty unconsionable really.  

[bluto 4947]

My place did have some wood rot and minor foundation issue on a shit addition prior to my ownership.

[LCHorn 2639]

6 hours ago, That Guy said:

Anybody here deal with va loans? Selling house in Austin. Buyer provided appraisal waiver and specified conventional financing in original offer. They are now trying to switch to va financing on an updated 3rd party financing addendum. Based on the addendum the deal can be canceled if the va appraisal is less than the sales price penalty free which means I’d be out option and earnest money. Is that an accurate take on my part? 

I’m dealing with this a lot because agents are deprioritizing VA buyers.
 

Unless you hate America I’d let them make the switch as long as they understand your intention to enforce their payment of an appraisal shortfall (make them prove they have it if you need to).   There‘s a win here for everyone if the buyer isn’t trying to use the VA loan as a means to change the terms of the sale.  

[That Guy 971]

I really wanted to accommodate the switch but wasn’t comfortable jeapordizing the earnest money. I just assumed the appraisal would be under the sales price and at that point buyer could walk for any reason. My take on the language in the addendum is that no other terms provided in the contract would survive the appraisal shortfall. Then I’d have to restart the whole thing.

Thank you all for the responses. 

Edited April 23, 2021 by That Guy
Shit says notwithstanding. That’s a big word.

[Esque 135]

Any thoughts on using a mortgage broker when your income is primarily derived from a business you own but are legally a W-2 employee?  Said differently, I expect a mortgage broker is going to primarily take your W-2 income and FICO score to shop around your credit for a mortgage.  Whereas does it make sense for me to put forth the effort to share tax returns, personal financial statements, and so forth to shop for that loan?

[hornmpa96 2625]

On 4/22/2021 at 6:20 AM, South Austin said:

Just adding to the anecdotal evidence, my friend’s parents’ bought their house near Canyon Vista Middle School about 15-20 years ago for $365,000. After the dad died a year ago, the mom put the house on the market last weekend and before an open house got a cash offer for $1.4M. And because of some uber-favorable tax treatment, she’s going to pay next to nothing on the capital gains.

I should have never sold my house in that area. By far my favorite house to own. On the tax side, married couples can exclude up to $500k of capital gain on their primary residence for tax purposes and half that for a single filer.

[Gil Bang 26099]

1 hour ago, Esque said:

Any thoughts on using a mortgage broker when your income is primarily derived from a business you own but are legally a W-2 employee?  Said differently, I expect a mortgage broker is going to primarily take your W-2 income and FICO score to shop around your credit for a mortgage.  Whereas does it make sense for me to put forth the effort to share tax returns, personal financial statements, and so forth to shop for that loan?

Do you qualify based on your W-2? 

 

[Gil Bang 26099]

56 minutes ago, hornmpa96 said:

I should have never sold my house in that area. By far my favorite house to own. On the tax side, married couples can exclude up to $500k of capital gain on their primary residence for tax purposes and half that for a single filer.

*iff you've used that home as your primary residence for 24 of the most recent 60 months

[LCHorn 2639]

1 hour ago, Esque said:

Any thoughts on using a mortgage broker when your income is primarily derived from a business you own but are legally a W-2 employee?  Said differently, I expect a mortgage broker is going to primarily take your W-2 income and FICO score to shop around your credit for a mortgage.  Whereas does it make sense for me to put forth the effort to share tax returns, personal financial statements, and so forth to shop for that loan?

As a consumer you have to understand that the loan that you and the lender are doing (regardless if it's a broker, depository bank, mortgage bank) are most likely creating is a product that more than likely is being made under eligibility guidelines that make it available for sale on a wholesale market.  The guidelines are therefore the same regardless of who you might be talking to with a few smaller exceptions that are mostly for non-qm (the old subprime) or portfolio products.  The fact that you are concerned about the pricing (i.e., you want to get the best deal) means you're liking in the market for a Fannie or similar loan. 

To your point, I'd want to see all of your financials, most likely before I determine pricing.  For one, I don't like quoting a rate before I KNOW I can do the loan at all, and the self-employed oftentimes think they make more money than what they like to report to the IRS.  Moreover, there may be pricing adjustments for the self-employed or other eligibility restrictions that effectively limit where the loan might be sold or delivered (principally on Jumbo loans that limit debt-to-income on the self-employed). 

Whether you pay yourself as a W-2 employee isn't really material if you own 25% or more of the business (in other words, you don't skip the underwriting scrutiny simply because you've structured your income as salary and file a separate business return). 

[gmr548 16635]

This thread is so goddamn depressing to read if you're under 30.

[Storm the Field 5305]

Saw a post on FB from a neighborhood realtor that there are currently 39 houses in my zip code (77018 Garden Oaks/Oak Forest) under contract for $900K or more.

Not too long ago, that number would be in the single digits at best.

[UTPhil2006 3828]

2 hours ago, Storm the Field said:

Saw a post on FB from a neighborhood realtor that there are currently 39 houses in my zip code (77018 Garden Oaks/Oak Forest) under contract for $900K or more.

Not too long ago, that number would be in the single digits at best.

Geez

[gmr548 16635]

8 hours ago, Storm the Field said:

Saw a post on FB from a neighborhood realtor that there are currently 39 houses in my zip code (77018 Garden Oaks/Oak Forest) under contract for $900K or more.

Not too long ago, that number would be in the single digits at best.

Hello neighbor.

I imagine it's mostly those huge new builds that make up nearly half the neighborhood. I don't think the smaller originals command that kind of money.

[Esque 135]

What are the macro thoughts on housing in major Texas metros here?  Better to wait a year, or is only going to get worse post-pandemic with Texas seeing tailwinds increase?

[Okie State 3855]

Saw a post on FB from a neighborhood realtor that there are currently 39 houses in my zip code (77018 Garden Oaks/Oak Forest) under contract for $900K or more.
Not too long ago, that number would be in the single digits at best.

Hello neighbor.
I imagine it's mostly those huge new builds that make up nearly half the neighborhood. I don't think the smaller originals command that kind of money.

We end up in that area pretty frequently visiting the local breweries. I would love to live around there and some of the older houses look really nice.

[gmr548 16635]

1 minute ago, Okie State said:

We end up in that area pretty frequently visiting the local breweries. I would love to live around there and some of the older houses look really nice.

I like it overall but the prices are pretty insane. We got a good price on a rental house but probably could not afford to buy in the neighborhood. The bottom of the barrel - older and in need of significant investment - is probably all we could afford, and that's if we got something at list price. Seems like that's fantasy.

The price point doesn't seem too different from the Heights at this point. If you're looking for proximity to the urban core, I don't see why you'd pick GO/OF over the Heights. Conversely, if you're attracted to the extra space, suburban feel, etc. I don't know why you wouldn't go get the same house in Spring Branch or Katy for significantly less money and with better schools. Seems to me like there's some paying for the GO/OF name at this point.

I don't mean to shit on it too much though, nice neighborhood. Some of the original houses have been really nicely updated and many have been well maintained in general.

17 minutes ago, Esque said:

What are the macro thoughts on housing in major Texas metros here?  Better to wait a year, or is only going to get worse post-pandemic with Texas seeing tailwinds increase?

I'm in multifamily, not single family, so I'd ultimately defer to those more in tune with the market, but I think the general impression is Texas isn't going to slow down any time in the short to medium term future. People aren't about to stop moving here. 

[Okie State 3855]

Oh yeah, I can't afford to live there or The Heights.

[Anastasis 23498]

22 minutes ago, gmr548 said:

We got a good price on a rental house but probably could not afford to buy in the neighborhood.

 

25 minutes ago, gmr548 said:

I'm in multifamily, not single family, so I'd ultimately defer to those more in tune with the market, but I think the general impression is Texas isn't going to slow down any time in the short to medium term future. People aren't about to stop moving here. 

Have had multiple acquaintances having their rental sold out from under them over the last few weeks in ATX. Abrupt moves to other cities cause there are limited options locally.  Really fucking sucks, but can't really argue with the math.  If I was sitting on a rental I'd be looking to cash out. 

[Dbeasy 15224]

Just now, Anastasis said:

 

Have had multiple acquaintances having their rental sold out from under them over the last few weeks in ATX. Abrupt moves to other cities cause there are limited options locally.  Really fucking sucks, but can't really argue with the math.  If I was sitting on a rental I'd be looking to cash out. 

I assume your acquaintances know that the lease can’t be terminated early on them. 

[Anastasis 23498]

Just now, Dbeasy said:

I assume your acquaintances know that the lease can’t be terminated early on them. 

I don't know all the details of their leases and the timing of the expiration of their terms, but know that they are abruptly moving in unanticipated scenarios to other cities. 

[Telegraph_it 3370]

This market is truly crazy. 6 years ago we bought a house in 30A about a mile from Alys. In that time I’d say we went about 4x a year. 
 

The house went under contract in under 24 hours after listing, sight unseen, for $900/sqft. Only problem, nothing to purchase in return. 

[TKthunder2 5016]

1 hour ago, Esque said:

What are the macro thoughts on housing in major Texas metros here?  Better to wait a year, or is only going to get worse post-pandemic with Texas seeing tailwinds increase?

If you think prices will go down to pre-2020 level then I think you’re in fantasyland.  If you think you can hold off until the inventory stabilizes and buyer has a little more choice/leverage then that might be a reasonable plan, but with each new company moving to this state prices aren’t going to drop anytime soon, you’ll just see less listings with multiple offers over list price.

My amateur opinion (Disclaimer: I work in tech not real estate or finance) is if you have your money in more active growth funds like stocks/crypto or property then you can probably wait until the market calms down some since you can have comparable (though obviously not 1 to 1) growth in your assets and having more choice, more leverage in inspection/appraisal negotiation could like make up for whatever money you might have to overpay by waiting; but if you’re sitting on a pile of cash in liquid form you should probably just go and get something now.