Planning to buy house in Bay area CA, need advise

[eluded]

Yeah the real estate here is absolutely out of control right now. And it's not gonna go down anytime soon. The economy could go off a cliff and those houses are just gonna go up in value. The only markets that are "soft" are "Skunk" markets.

You could always rent?

[dzvero]

Originally Posted by kprocivic

when you say not so good, is that under 620?

under 740 which is the min if you dont put 20% down

[eluded]

Originally Posted by dzvero

under 740 which is the min if you dont put 20% down

There's nothing good in that range here, you'd be best off waiting until fall, when things traditionally cool down

[jtodd_fl]

Originally Posted by eluded

There's nothing good in that range here, you'd be best off waiting until fall, when things traditionally cool down

I think that refers to the lady's credit score, which is why she won't be on the mortgage. (I'll be your thread guide this evening.)

[dzvero]

Correct

[tdott]

Originally Posted by BMW F22

Tech bubble is going to burst in the next few years. Apple's growth stunted and they are laying off people. They won't have any exciting products coming until next year. Even then it may not meet investors' expectations.

With billions in profit and billions in the bank, they aren't laying off people, just shifting around resources, if anything they'll be spending more working on the next big thing, or trying to.

[csu87]

Wells fargo sucks. I went with them for my first house and they raked me over the coals with my mortgage with putting 15% down (25% of appraised value). The requirements for me to buy my first house ($250k) vs my current house ($400k) were more stringent with Wells Fargo.

For the current house, I shopped around a ton and found that Capital One was offering the best rate, no additional fees/points for a 15% DP, and they were giving away a ton of rewards points. Discover Home Loans and Quicken Loans were also pretty competitive. Only issue i was running into is my wife was a contract worker vs FTE and they didnt want to count her wages as income. My overall impression was that the big name guys were going to be much easier to work with, and were offering a much better mortgage than Wells Fargo.

I ended up going with a small local mortgage company that my realtor recommended in the end because of the wife's job situation. He was able to get her income approved to be used in our monthly income totals, which allowed us to qualify for lower rates and less fees.

My advice is to steer clear of Wells Fargo and shop around for the best rate. The big name guys I mentioned may be the cheapest option, but smaller local guys can usually work some magic to get an approval for something that a big company may not approve. This will help if you arent planning on putting your wife on the mortgage.

[jgoens]

Originally Posted by eluded

Yeah the real estate here is absolutely out of control right now. And it's not gonna go down anytime soon. The economy could go off a cliff and those houses are just gonna go up in value. The only markets that are "soft" are "Skunk" markets.

You could always rent?

Skunk markets are going through the roof as well..houses are selling easily even when you have skunks in the yard.

Originally Posted by jtodd_fl

I think that refers to the lady's credit score, which is why she won't be on the mortgage. (I'll be your thread guide this evening.)

Oh man..noticed that avatar I'm never living this down am I?

[jgoens]

Originally Posted by csu87

Wells fargo sucks. I went with them for my first house and they raked me over the coals with my mortgage with putting 15% down (25% of appraised value). The requirements for me to buy my first house ($250k) vs my current house ($400k) were more stringent with Wells Fargo.

For the current house, I shopped around a ton and found that Capital One was offering the best rate, no additional fees/points for a 15% DP, and they were giving away a ton of rewards points. Discover Home Loans and Quicken Loans were also pretty competitive. Only issue i was running into is my wife was a contract worker vs FTE and they didnt want to count her wages as income. My overall impression was that the big name guys were going to be much easier to work with, and were offering a much better mortgage than Wells Fargo.

I ended up going with a small local mortgage company that my realtor recommended in the end because of the wife's job situation. He was able to get her income approved to be used in our monthly income totals, which allowed us to qualify for lower rates and less fees.

My advice is to steer clear of Wells Fargo and shop around for the best rate. The big name guys I mentioned may be the cheapest option, but smaller local guys can usually work some magic to get an approval for something that a big company may not approve. This will help if you arent planning on putting your wife on the mortgage.

Yeah..good point that is why I gave him the info for my Mortgage banker at Bank of the West--they are not a big bank like BOFA And Wells but got a better rate and an easy loan. Course around here 400K buys you a skunk shed shack.

[squidge]

Originally Posted by Templar

Just came back from a trip out to Monterey. Loved the area, beautiful... No way in hell would I pay that much for a house though. I'll take my 2500 sqft home in eastern NC any day.

Sorry I provided no info of any help to you. The area is beautiful though, so good luck.

+1. I live in the bay area, but still own a house in Raleigh. We're moving back next year. My wife and I both have tech jobs but... it's just ridiculous out here. We can pay off our nice house inside the beltline in Raleigh for less than a down payment here.

Good luck with your search, OP.

[///WORK-F36]

You don't need 20% down.

FHA loans allow 3.5% down, conventional only 5% down with a 680 credit score, but it's going to depend on the loan amount, and if it's conforming, jumbo, or conforming high balance.

[BMW F22]

Originally Posted by ///WORK-F36

You don't need 20% down.

FHA loans allow 3.5% down, conventional only 5% down with a 680 credit score, but it's going to depend on the loan amount, and if it's conforming, jumbo, or conforming high balance.

if you put less than 15-20% down, don't you have to pay PMI and higher interest? Would that be a good way to go ? Serious question.

[FType22]

Originally Posted by jgoens

Yeah..good point that is why I gave him the info for my Mortgage banker at Bank of the West--they are not a big bank like BOFA And Wells but got a better rate and an easy loan. Course around here 400K buys you a skunk shed shack.

I think you're only going to find something for 400k in the east bay, at this point 400k won't even buy a condo on the peninsula, probably not even in the south bay anymore.

[sygazelle]

Originally Posted by dzvero

Me alone can apply for more than that but not enough for what im looking for

You can qualify for more if you don't have a car payment. If you really want this, sell your car and get a beater. Get the house and then go get a nice car afterword.

BTW, here are the latest listings for single family homes in Campbell.

Good luck!

http://www.realtor.com/realestateand...ily-home/sby-1

[csu87]

Originally Posted by BMW F22

if you put less than 15-20% down, don't you have to pay PMI and higher interest? Would that be a good way to go ? Serious question.

Depends on the bank you go with. Wells fargo i had to pay pmi. My current loan i do not.

[///WORK-F36]

Originally Posted by BMW F22

if you put less than 15-20% down, don't you have to pay PMI and higher interest? Would that be a good way to go ? Serious question.

You can go with LPMI (lender paid PMI) programs where it equates to a rate a little bit higher, but no PMI. It all comes down to the overall payment, and how long you're going to be in the loan. No one keeps a 30 year fixed 30 years, most people refinance every 5-7 years. The rate is not better though with a 20% down payment compared to a lesser down payment. You don't see an improvement on the interest rate until you put 25% down or more

[BMW F22]

Originally Posted by csu87

Depends on the bank you go with. Wells fargo i had to pay pmi. My current loan i do not.

Interesting...

[BMW F22]

Originally Posted by ///WORK-F36

You can go with LPMI (lender paid PMI) programs where it equates to a rate a little bit higher, but no PMI. It all comes down to the overall payment, and how long you're going to be in the loan. No one keeps a 30 year fixed 30 years, most people refinance every 5-7 years. The rate is not better though with a 20% down payment compared to a lesser down payment. You don't see an improvement on the interest rate until you put 25% down or more

Good to know. Thanks for the info guys!

Never knew that you don't necessarily have to pay for PMI with less than 20%. I'm curious if it's as secured to go with a smaller bank than the big guys. Sorry for thread hijack OP. Just thought that these questions are pertinent.

[nholmes]

Bring lubricant.

Only advice I have to advise.

[M3 Number 86]

Try sofi.

[dzvero]

Originally Posted by BMW F22

Good to know. Thanks for the info guys!

Never knew that you don't necessarily have to pay for PMI with less than 20%. I'm curious if it's as secured to go with a smaller bank than the big guys. Sorry for thread hijack OP. Just thought that these questions are pertinent.

It is very good question, thanks

[dzvero]

If I go to shop around will it hurt my credit score as they will check them every time