SHHHHHHHHHHHH! I have a secret!

posted 3 years ago in Home
Post # 3
Member
3519 posts
Sugar bee
  • Wedding: March 2012

What awesome news!!!!!  Any updates?

Post # 4
Member
6502 posts
Bee Keeper
  • Wedding: September 2011 - Baby boy 12/2015

Sounds exciting! Update us when you can 😉

Post # 5
Member
10384 posts
Sugar Beekeeper
  • Wedding: September 2010

I didn’t know 40 year loans still existed. Are you in the US? Intersesting. Just make sure that there are no pre-payment penalties or weird/larger than normal fees. Don’t let the excitement of the possibility of a house sweep away the double checking of all the fine print :-).

Post # 6
Member
546 posts
Busy bee
  • Wedding: September 2013

Congratulations!  I hope it works out for you. I 2nd @crayfish:  be sure to read the fine print, make sure there’s no hidden surprises. Luckily some of the new federal legislation requires lenders to highlight important information in plain language to make it easier for us laymen. Also wouldn’t hurt to look at competing rates. There’s also programs available to help 1st time homebuyers, be sure to do your research! 

Post # 8
Member
635 posts
Busy bee
  • Wedding: November 1999

That’s AWESOME!!! Hoping for great news for you guys!!!

Post # 10
Member
5284 posts
Bee Keeper
  • Wedding: April 2013

Yayy!! Sounds good! Hopefully it all works out for you 🙂

Post # 11
Member
7395 posts
Busy Beekeeper

@MrsCanoodle:  Honestly I would be wary. I don’t mean to be a debbie downer but this is how a lot of people lost their houses in the GFC.

I would advise you to get someone independent to review the contract and the terms/conditions and to assess the risk of the loan.

Post # 12
Member
1016 posts
Bumble bee
  • Wedding: August 2014

@j_jaye:  I agree, I’m sorry but this is giving me the heebiejeebies. 40 years, 3.5% down…I just can’t imagine. We’re at the maximum term in Canada at 25 years and that is a good chunk of our lives as it is. Just make sure it gets checked over, and over, and over. It will definitely be worth paying a lawyer to look over this for anything sneaky and please remember your mortgage broker is not your friend. They aren’t looking out for you. 

 

Post # 13
Member
37 posts
Newbee
  • Wedding: June 2014

Am I reading this right–the president of the bank is trying to encourage you to buy a house “they” are building?  Meaning he is somehow involved in this house development?  That is a HUGE conflict of interest and a big red flag.  Now he has an enormous profit motive to approve you for a loan you can’t actually afford.  I am sorry, but that sounds fishy, if not outright illegal.   Please don’t let your enthusiasm let you make a mistake you will regret for the rest of your life.  Buy only what you can comfortably afford!  And I do mean *comfortably*.  What if one of you gets laid off?  And it doesn’t sound like the housing market in your area is strong at all–it’s highly possible that they’re trying to dump property that they would have to take a loss on.  Be careful!  At the very least, get an impartial 3rd party such as an accountant or a lawyer in that field to look over the contract for you.  The expense at the start could save you years of heartache later on.

Post # 16
Member
1016 posts
Bumble bee
  • Wedding: August 2014

@MrsCanoodle:  “The banker said he would not be able to give us the same mortgage with 3.5% down if we were to build in another town, but as this property is next to the town he is from, he would be willing to help us get the house we want and help grow the town. “

…why? Nevermind 3.5% down is an incredibly low amount, but why only in his development? What is he getting out of this? 

I’m sorry and I know you’re excited and will go through with this anyway BUT…the more info you give the more worried I get. Sorry 😐

Also, around here if you can’t provide 20% down you have to get mortgage insurance where you are basically paying the insurance premiums on behalf of the bank so the bank (not you!) doesn’t take a loss if you default on your mortgage. Does that apply where you are? 

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