Hey guys! I am SO confused with this home buying stuff and hoping someone can help me out.
Background: I make 120,000$/year in salary and have roughly 20-35k a year in bonuses. I live in Florida (no income tax). I save 12% in my 401k and max it with my bonus each year for a total of 18,000. I have 62,000$ student loan debt. I own my car and have no other "major" bills on that end.
I currently rent for 2200/month in south florida and am buying a house in central Florida. This house is $295,000 and brand new (lennar home). They are telling me to use their lender to save $12,000 in closing costs otherwise I have to come out of pocket. I have saved up 25,000$ in cash for a down payment on the house and with a 5% conventional loan that's basically more than I would need. While it will put me with less than 5,000$ in cash, the move in date is November to February depending on completion and I will get my bonus check in December again.
My questions:
Bank of America "pre approved" my loan saying i'm 24% Debt to Income ratio on this setup and was told that is "very good". My credit score is very high (832) and I'm told my income is good as well. They offered me a preapproval at 4.00%.
Lennar's people are telling me the best they can do is 4.375 but they give me 12,000$ in closing costs. Should I just fork out the extra 12,000$ and go with Bank of America? That lending company doesn't seem to care about the fact that I feel that 0.375% is way too high of a difference for someone like me.
I've never defaulted, have a great job and have never been late on a credit card, rent, and paid off all other debts early (car/student loans etc).
HELP?!
Any tips for this process would be great.
Submitted May 25, 2017 at 11:28AM by jetflyer89 http://ift.tt/2rZbNky
