All Encompassing Mortgage and Real Estate Thread

[Neonmoon 38126]

DR Horton just kneecapped me. Those cocksuckers. 

[Wulaw Horn 18919]

Just now, Neonmoon said:

DR Horton just kneecapped me. Those cocksuckers. 

I always just assume I’m never getting that deal and make my peace with costing their lender money- making them work for free. 

[closetohumping 17302]

1 minute ago, Neonmoon said:

DR Horton just kneecapped me. Those cocksuckers. 

Cut commission?

[Wulaw Horn 18919]

100 basis point move against us since the beginning of the week in the mortgage backed securities market. That’s 1/4 worse to rate for borrower. Aka we just gave back the entirety of the good week we had last week, more or less. 

[Wulaw Horn 18919]

1 minute ago, closetohumping said:

Cut commission?

Most likely their lender undercut him. Which they can do only bc they are being propped up by DR Horton as the seller. 
the scam goes like this:

Builder- if you use our lender we will give you 10k for closing but only with our lender. 
lender/ checks market and sees 5.25 is the going rate- sure. We will give you a loan- 5.75%. 
borrower- that sounds extreme- I’m going with Neon for 5.25

lender- ok- we can do 5.25 after all. 
borrower- you guys are dicks but whatever that’s money in my pocket. Thanks for helping me Neon. Sucks to suck for you but we won’t be working with you. 

[Pato del Muerto 52120]

I’m surprised builders in this market aren’t mandating the use of their lending service.  Maybe that’s not legal?

[Wulaw Horn 18919]

1 minute ago, Pato del Muerto said:

I’m surprised builders in this market aren’t mandating the use of their lending service.  Maybe that’s not legal?

They aren’t mandating. They do everything short of it. If they have a lender. 

[UTPhil2006 3774]

32 minutes ago, Wulaw Horn said:

They aren’t mandating. They do everything short of it. If they have a lender. 

This.  They are the sketchiest to deal with.  And they don't save you any money.  I always use the same analogy when explaining it to the borrower.  Put your arm out, now push down on your wrist (lowering the rate).. all they did was move the money somewhere else (up).  Their usual protocol.  

[Neonmoon 38126]

1 hour ago, Wulaw Horn said:

Most likely their lender undercut him. Which they can do only bc they are being propped up by DR Horton as the seller. 
the scam goes like this:

Builder- if you use our lender we will give you 10k for closing but only with our lender. 
lender/ checks market and sees 5.25 is the going rate- sure. We will give you a loan- 5.75%. 
borrower- that sounds extreme- I’m going with Neon for 5.25

lender- ok- we can do 5.25 after all. 
borrower- you guys are dicks but whatever that’s money in my pocket. Thanks for helping me Neon. Sucks to suck for you but we won’t be working with you. 

Pretty much this. Just outrageous fucking closing credits and 4 month lock rate. Working with the borrower for months. Gone

 

[chainsaw 9668]

3 hours ago, Wulaw Horn said:

 

Builder- if you use our lender we will give you 10k for closing but only with our lender. 

 

Sounds kinda like antitrust. Am I missing something?

[Neonmoon 38126]

12 minutes ago, chainsaw said:

 

Sounds kinda like antitrust. Am I missing something?

They are a very large corporation. They offer huge concessions and ridiculous rates to get the loan. It's not anti-trust, it's business. They know others can't match. They will get the money back somewhere else. Whoops, construction delayed, gonna cost an another 5K for bullshit reason. They're sketchy as fuck. But it's hard to convince a borrower they are sketchy as fuck when someone is offering them 5K and a rate in the 4s for 4 months. 

[Wulaw Horn 18919]

4 minutes ago, Neonmoon said:

They are a very large corporation. They offer huge concessions and ridiculous rates to get the loan. It's not anti-trust, it's business. They know others can't match. They will get the money back somewhere else. Whoops, construction delayed, gonna cost an another 5K for bullshit reason. They're sketchy as fuck. But it's hard to convince a borrower they are sketchy as fuck when someone is offering them 5K and a rate in the 4s for 4 months. 

How about the Gm that says- boy- I’d hate it if you didn’t use our lender and then the driveway doesn’t get poured straight.  

[LCHorn 2564]

2 hours ago, Neonmoon said:

They are a very large corporation. They offer huge concessions and ridiculous rates to get the loan. It's not anti-trust, it's business. They know others can't match. They will get the money back somewhere else. Whoops, construction delayed, gonna cost an another 5K for bullshit reason. They're sketchy as fuck. But it's hard to convince a borrower they are sketchy as fuck when someone is offering them 5K and a rate in the 4s for 4 months. 

Frankly I try to sniff those out and encourage them to use the builders lender.  It’s not worth the time.  

[Wulaw Horn 18919]

18 minutes ago, LCHorn said:

Frankly I try to sniff those out and encourage them to use the builders lender.  It’s not worth the time.  

I usually get them to send me the builders lenders estimate, laugh at them, send them out more sharpest possible deal, and tell them to take it to the builder and see if they will match or better it, and if they say no then I have the conversation of "please don't waste my time- I now expect you to go through with this loan- give me your word that you are going to do this loan with me if we perform what we tell you we will perform for you right now so I don't waste my time".  I think I've only lost 1 or 2 after I have that conversation.  

Frankly, it just doesn't often get past- "here's what we will do- take it to your builder and see". Almost always stays with the builders lender at that time.  After they shockingly find that yes- they can in fact lower the interest rate 0.5% lower than what they originally quoted.  

[closetohumping 17302]

1 hour ago, LCHorn said:

Frankly I try to sniff those out and encourage them to use the builders lender.  It’s not worth the time.  

I'm in sales.  Second best answer in my world is "no."

[Dbeasy 14792]

Stopped by to give a huge positive shoutout to Phil and Thad. When you are thinking about who to work with on financing a property, there are very important considerations that often go unnoticed. 

In my case I had a customer buying a very inexpensive property but it had a ton of hair on the deal. It ended up being a pain in the ass because the lender presented some late breaking issues. The guys busted their ass to not only get the deal done, but also in just in time for the rate lock. 

[TKthunder2 4959]

https://www.kvue.com/article/money/economy/boomtown-2040/austins-housing-bubble-bursting/269-03ec4961-b04a-4191-88ae-a0398f54bc23
 

Quote

He said investors may be most affected by a drop in prices. According to the property data firm CoreLogic, investors bought about one-third of all single-family houses sold in the Austin metro area last year.

"They're buying at evaluations that don't make sense," said Gerli. "So, I think, you know, a lot of them will get burned." 

That’s a crazy high number if true.

[Dbeasy 14792]

My informal survey last year showed about 40% investors. I think it’s right. 

[Neonmoon 38126]

I think the number was 33% in January 2022

 

[Armybrat 40561]

I laughed reading this sales brochure for the huge Brewster Ranch…. They’re asking $975/acre.

When I finished school 55 years ago, that land was going for $20/acre at most out there.

https://kinglandwater.com/properties/brewster-ranches/

[Muny_Tex 285]

Op-Ed in today’s WSJ opposes a proposed cut in FHA loan premiums.

Haven’t seen topic discussed on this thread (I don’t think?), so interested to hear perspectives from our resident gurus.

********

The Fed’s housing support has been a boon for current home owners. Many have been able to refinance mortgages and slash their monthly payments by hundreds of dollars. Ninety-eight percent of homes with conventional 30-year mortgages have rates lower than 5%. But the losers are low- and middle-income Americans who don’t own homes and now can’t afford to buy them as the Fed finally raises rates. The 30-year fixed mortgage is now hovering at 5.1% to 5.3%, the highest since the summer of 2009.

This has the Biden Administration looking for ways to offset rising mortgage rates. One idea from the housing lobby is to cut Federal Housing Administration premiums. The FHA insures mortgages for buyers with low credit scores and down payments as low as 3.5%. Home-buyers pay a 1.75% fee up front on a 30-year loan and then an annual premium of 0.8% to 1.05%, depending on the size of the loan and down payment.

https://www.wsj.com/articles/how-to-make-housing-less-affordable-federal-housing-administration-mortgage-insurance-premiums-biden-11653854542?mod=opinion_lead_pos4

[jimmyjazz 45214]

8 hours ago, Armybrat said:

I laughed reading this sales brochure for the huge Brewster Ranch…. They’re asking $975/acre.

When I finished school 55 years ago, that land was going for $20/acre at most out there.

https://kinglandwater.com/properties/brewster-ranches/

7.3% annual.  Sounds about right.

[Neonmoon 38126]

Well it was a nice rate reprieve while it lasted. 

[ChickenSandwich 9770]

Just needed to give a shout out and thank you to Wulaw and his wonderful team.  Not the easiest housing market to navigate, but Gabe and the team did an outstanding job.  

 

Thier communication and responsiveness, not just to me, was a real difference maker in getting a rate lock, and moving quickly to close to satisfy a seller with multiple offers.  Having someone willing to ask questions and understand your goals was invaluable.

I wouldn't have him drive my RV, but can't recommend him and their team enough to anyone needing mortage help.

Thank you!!!

 

*just need to know where to send the new pop up tent I got for you

[Dbeasy 14792]

23 hours ago, Armybrat said:

I laughed reading this sales brochure for the huge Brewster Ranch…. They’re asking $975/acre.

When I finished school 55 years ago, that land was going for $20/acre at most out there.

https://kinglandwater.com/properties/brewster-ranches/

That is a great per acre price in todays market. If 2,000 surly investors will go in on it with me I’ll buy it. 

[UTPhil2006 3774]

On 6/1/2022 at 5:37 PM, Dbeasy said:

Stopped by to give a huge positive shoutout to Phil and Thad. When you are thinking about who to work with on financing a property, there are very important considerations that often go unnoticed. 

In my case I had a customer buying a very inexpensive property but it had a ton of hair on the deal. It ended up being a pain in the ass because the lender presented some late breaking issues. The guys busted their ass to not only get the deal done, but also in just in time for the rate lock. 

Thanks bud.  Got a little wonky there towards the end but that's why we pay Danna the big bucks.

[CHIEF 5046]

On 6/2/2022 at 2:51 PM, Armybrat said:

I laughed reading this sales brochure for the huge Brewster Ranch…. They’re asking $975/acre.

When I finished school 55 years ago, that land was going for $20/acre at most out there.

https://kinglandwater.com/properties/brewster-ranches/

I remember classified ads, in the Statesman in the early 90's, where you could buy all you wanted for $49/acre. Mrs. CHIEF's grandparents, aunts, and uncles lived in Marfa. I tried to talk her into buying 2000 acres out there for $100k, and just sitting on it for a retirement fund. She said that land is just there to hold the World together, and would never be worth jack shit.

CHIEF

[CHIEF 5046]

Our inventory numbers are up in our neighborhood from about six houses to twenty-seven, at the moment. We are listing agents, and have the Lion's share. Houses are going for asking price, some slightly over, but not the $30k-50k we were seeing last summer. Being a country club community, a lot of the homes for sale are second homes, so no Homestead exemption. Quite a few folks are unloading them as valuations have gone up 30-40%.

My mother/broker is taking advantage on a listing from another agent that usually works in town. She is buying a home that has been in architectural digests, absolutely stunning, priced at $222/sqft. It is easily worth $250/sqft, if not more. When my Dad passed she sold their 3400 sqft. home, and downsized to 2200 sqft. now back up to 3750 sqft. She also purchased the riverfront lot next to our six acres with a shop. CHIEF Jr. will build there. We will have three houses, bought and paid for in our neighborhood, and a finished out apartment at the shop, so housing for four generations. This has been our goal since last year, knowing that the only way our descendants will be able to own a home is through inheritance. So no matter their income, they will always have a roof over their head, and no house payment.

CHIEF 

[jimmyjazz 45214]

That's really cool, @CHIEF.

[fattyflattie 4633]

3 hours ago, CHIEF said:

This has been our goal since last year, knowing that the only way our descendants will be able to own a home is through inheritance. So no matter their income, they will always have a roof over their head, and no house payment.

That’s a pretty damn good idea.  May have to think on that one awhile, in case the prices ever dip again enough to take advantage of something like that.  

[gurt 736]

I’ve hit number or higher on my last 13 out of 15. Have one that came in low bc the neighborhood is geographically small and hasn’t seen much recent activity and the other one bc the place was a piece of shit. Advised one client to buy and the other client to walk bc of the reasons behind the appraisals coming in low being the difference. 

I was the one in the small neighborhood he advised to buy. It messed up the loan we initially tried to get in on, but we will most likely circle back to that at a later date when our appraisal catches up to reality.

Just wanted to publically thank Gabe (Wulaw) and his team for his guidance through this crazy process. His insight and ingenuity really helped us make a difficult situation that we feel good About now. We’ve just moved in and are happy we made this decision.

Side note: moving while it’s 102 out and you have Covid is not so fun.

[Wulaw Horn 18919]

1 hour ago, gurt said:

I was the one in the small neighborhood he advised to buy. It messed up the loan we initially tried to get in on, but we will most likely circle back to that at a later date when our appraisal catches up to reality.

Just wanted to publically thank Gabe (Wulaw) and his team for his guidance through this crazy process. His insight and ingenuity really helped us make a difficult situation that we feel good About now. We’ve just moved in and are happy we made this decision.

Side note: moving while it’s 102 out and you have Covid is not so fun.

Dude- thanks so much- it sucked a bit we couldn’t get the over the top good deal but still makes sense. Thanks so much for letting us help

you. 

[UTPhil2006 3774]

On 6/3/2022 at 8:47 AM, Neonmoon said:

Well it was a nice rate reprieve while it lasted. 

And we're basically back to where we started about 2 weeks ago.  Gave back all the reprieve.   Up .05 today to 3.02

[Wulaw Horn 18919]

Two steps forward and three back. Probably be like that until late fall/winter when I expect it to get better based upon all the people I trusts forecasts. 

[Neonmoon 38126]

CPI report on Friday will tell which direction this goes 

[JesusSweatDuck 17780]

3 hours ago, UTPhil2006 said:

And we're basically back to where we started about 2 weeks ago.  Gave back all the reprieve.   Up .05 today to 3.02

I keep hearing about high rates but 3.02 is still incredibly low. First house I bought was at 6%

[Sbbruin 21588]

Question for you resi guys- our house has been in my name since we bought it 20 years ago, because let's just say my wife and I have differing credit profiles.  But I think I need to get her on title for a variety of reasons.  Our LTV is probably 20%.  What do I need to do to add her, and will my lender take issue with it?  

[Wulaw Horn 18919]

12 minutes ago, JesusSweatDuck said:

I keep hearing about high rates but 3.02 is still incredibly low. First house I bought was at 6%

That’s 10 year treasury. National average on 30 year fixed is more or less 5.5. 

[Wulaw Horn 18919]

4 minutes ago, Sbbruin said:

Question for you resi guys- our house has been in my name since we bought it 20 years ago, because let's just say my wife and I have differing credit profiles.  But I think I need to get her on title for a variety of reasons.  Our LTV is probably 20%.  What do I need to do to add her, and will my lender take issue with it?  

Just draw a deed. I can look at it if you send me your warranty deed when you bought the property.  No cost. 

[Sbbruin 21588]

8 minutes ago, Wulaw Horn said:

Just draw a deed. I can look at it if you send me your warranty deed when you bought the property.  No cost. 

I'll see what I can find.  Hope it is somewhere.  Otherwise I'll need to get a copy from the county recorder.

[Wulaw Horn 18919]

13 minutes ago, Sbbruin said:

I'll see what I can find.  Hope it is somewhere.  Otherwise I'll need to get a copy from the county recorder.

Yep. 

[Pato del Muerto 52120]

I’m surprised she wasn’t on the deed to begin with as joint tenants or JTWROS. 

[Gil Bang 25690]

1 hour ago, JesusSweatDuck said:

I keep hearing about high rates but 3.02 is still incredibly low. First house I bought was at 6%

9.5 for me.

48 minutes ago, Sbbruin said:

I'll see what I can find.  Hope it is somewhere.  Otherwise I'll need to get a copy from the county recorder.

Just shoot me the info and I'll get it from my title guy and send it over.   But hey, at this point, and at your age,  you should probably consider putting your home into a trust anyway.

[Gil Bang 25690]

1 hour ago, Wulaw Horn said:

Just draw a deed. I can look at it if you send me your warranty deed when you bought the property.  No cost. 

About a 95% chance he got a grand deed. Not as "good" as a warranty deed IIRC.

[Wulaw Horn 18919]

12 minutes ago, Gil Bang said:

About a 95% chance he got a grand deed. Not as "good" as a warranty deed IIRC.

That’s obviously why I need to see it…

[Neonmoon 38126]

1 hour ago, Sbbruin said:

I'll see what I can find.  Hope it is somewhere.  Otherwise I'll need to get a copy from the county recorder.

Hope you’re not in Los Angeles County. Those assholes don’t have their records online (not free at least)

Don’t involve your lender. Just deed it over. You can get a form at county office. Like this one https://arcc.sdcounty.ca.gov/Documents/GD.pdf

Hell someone on here could fill it our for you. Then pay someone to notarize it, and pay for it to be recoded

 

[Sbbruin 21588]

1 hour ago, Neonmoon said:

Hope you’re not in Los Angeles County. Those assholes don’t have their records online (not free at least)

Don’t involve your lender. Just deed it over. You can get a form at county office. Like this one https://arcc.sdcounty.ca.gov/Documents/GD.pdf

Hell someone on here could fill it our for you. Then pay someone to notarize it, and pay for it to be recoded

 

Yes, LA County.  Thx

[TTU13 108]

Not sure where to post, so I’ll post it here.

Wife and I are young (31), built our first home and planned on being here for 5-7 years before upgrading.

Given current market, we decided we’re staying here and will make some of the upgrades we wanted to get on our next home on this house and save the extra money to buy a second home when the market drops.

We’re coming up on our 4th year here. Is it a good idea to have a home inspection every couple years to catch any issues with foundation, plumbing, etc? I imagine paying the 500-600 bucks to catch something early is worth it? We have zero settling issues (that I can see) but would rather get ahead on any issues that may come up to save headaches later on.

[TKthunder2 4959]

If you have a reason to be worried call the applicable repair company for a quote and they’ll inspect what you’re worried about.

if you have no settling cracks, no water issues, electrical all acts correctly then I would just count your blessings and pocket the money.  The only thing I get inspected regularly is my HVAC (though I will have a plumber descale and inspect my tankless water heater every two years going forward).

Inspectors always try to find something, sure they could uncover something major but 9 times out of 10 with a new build that “major” issue won’t turn into a big deal for at least another decade.

Standard inspection report bullshit includes poor grading, poor/insufficient  flashing, settling cracks (that they recommend getting a foundation inspector to look at), roof concerns (same as what I just typed), caulking around windows, tile/grout/caulking around kitchen/bath, leaky sinks/toilet, filters need to be replaced, dryer hose full of lint, HVAC not balanced, loose railing, doors/windows binding, vegetation touching the home…

[Gil Bang 25690]

WTF? (No CR)

While many lenders are moving to downsize in the face of rising rates, none have done so more dramatically than Better, which captured international headlines in December when CEO Vishal Garg laid off 900 employees on Zoom call. That turned out to be a prelude to even more drastic cuts, with 5,800 employees dismissed as of March 31. While executives must often make difficult decisions to “right size” in order to keep expenses in line with revenue, Garg has been coping with the added burden of trying to keep Better’s SPAC merger on track. Originally announced in May, 2021, the deal has yet to close as Better’s losses mount. 

 

Now a whistleblower lawsuit filed by former Better COO Sarah Pierce alleges that in the hopes of closing the deal to take Better public, Garg provided investors with numbers that inflated the company’s prospects. Pierce, who says she was fired in February after attempting to correct several of Garg’s misstatements to investors, claims that Garg pushed forward with an aggressive growth plan that depended on rates staying low, "based on his belief that President Biden would die of COVID." Pierce’s lawsuit claims that this was not something Garg said once, in private, but that he made this belief known to at least 50 executives on multiple occasions. 

 

A lawyer for Better categorically dismissed the allegations. “We have reviewed the claims in the complaint and strongly believe them to be without merit,” the lawyer said in a statement to Inman. “The company is confident in our financial and accounting practices, and we will vigorously defend this lawsuit.”