For Those Househunting

Make sure to keep your cancelled rent checks if you have an apartment. Mortgage companies will most likely want to see a year`s worth of these such payments. Ours did, and our friend`s company did as well. It just seems to be standard procedure. Also, save your pay stubs and all bank statements. Our mortgage company wanted a detailed look at how our money was moving in the year leading up to our purchase. If anyone is going to give a large sum of money to help out, consult a financial advisor, accountant or tax professional regarding families 'gifting' large sums of money ($10,000 or more). Mortgage companies might require the gift giver to write a brief statement saying they gave the money. A question you might want to ask mortgage companies before signing with them, is what their rate of sell-off is. We signed with First West, and when we asked them, they sort of blew off the question. After signing with them, my fiance found in very small print, the rate was approximately 75%. Before we even made our first payment, our mortgage was sold to Fleet. Because First West dotted every I and crossed every T, or mortgage is easy to sell, and was sold from Fleet to PNC, which is now Washington Mutual. This is annoying becuase you need to make sure the insurance is changed each time and it`s just simply a hassle keeping up with these changes (we`re on our 4th company in 14 months). But, from what my insurange broker says, sell-offs are becoming more common.

For Those Househunting-Gifts of $

Besides signing a gift letter. The mortgage company will probably want a copy of the cancelled check along with bank statements showing the money coming out of the gifter's account and going into your account.

Yep! I forgot that one. Bottom line...Keep all money trails *NM*

Kel

Just for your info, I know the owner of First West through my job. What they do is give you the mortgage and then sell it. They have no intention of keeping it more than 3 months. I was told to think of it like this: They lay out xx (lets just say $100,000) for you,it will take them 30 years to get that money back plus interest. So they sell it to a bank for say 150,000 or more. They got their money back and more in 3 months. They do about 500 mortgages like that a year! Can you imagine?? The bank buys the mortgage from them in clumps. When fleet got you, they probably got 5 others also... Good business to get into if you have the layout! I know you dont need this info and it wont help you sleep better at night but just so you know how they work... Very nice owner though. : )

Mortgage Sell-offs

Thanks for the inside info Leyann. I figured it was something like that. I mean, they obviously have to be doing something financially rewarding to have such a high sell-off rate, right? And they are obviously very detailed about getting their files together on each of their clients to be able to have so many attractive sell-offs in such a short time after closing. Like I said, when we were sold, we hadn`t even made our first loan payment yet. I just wish the banks would stop playing hot potato with our mortgage. If you have any tips on getting this game to stop, I`d appreciate it.

Mortgage Sell-offs

I wish I did. Unfortunatly the only reason I know is because I work in the insurance business and my boss is friends with the owner of First West and explained to me why I am forever changing mortgages 30 times on the same insured!! I am sure it drives you crazy.. all I have to do is change it.. you have to keep records on it! I would kill them too!