Florida - FTHB How does this look?
Hey all,
I'm 33 years old with an 800 credit score, no debt, single, no dependents, have a steady career of 11 years and currently make $112,000 with $200,000 saved.
I found a house in a really nice neighborhood for $435,000 today and immediately scheduled a viewing and got ahold of a friend that does pre-approvals and mortgages. After running my credit he advised my debt-to-income ratio is at 33% (income/debts+new MTG payment) where the cap on a conventional loan is 50% so I am "over qualified and could close in 2 weeks".
I was going to offer $420K on the house, but he stated that I should offer the list price and ask for the difference back in seller concessions. By keeping the $10,000 difference in my pocket to throw at the rate being today they're at an "all time high".
He's estimated the following:
Insurance: $375/mo
Taxes: $550/mo (currently $238 but that'll update after the value gets updated)
HOA: $90
He has me selected and paying for the title services as a "worst case scenario".
These are the numbers he has came up with:
$425K (House price) with 30% down (no rate buy down)
Down payment: 30% ($127.5k)
Total monthly payment: $2920
Total case to close: $148.5
OR
$435 (House price) with 30% down + $10K back from the seller (Full rate buy down)
Down payment: 30% - $130.5
Total monthly payment: $2890
Total cash to close: $147.9
I've never done this before and it's literally giving me a headache trying to understand the buy back points program. Does one deal sound like a better deal than the other? Should I also reach out to other mortgage lenders to see if they can get me a better rate than 6.4% right now or is that standard across the board in FL?
Thanks for any help you can give me!