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The borrower is slave to the lender

Home Mortgages and Home Buying The borrower is slave to the lender

  • CordMcNally CordMcNally 
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    Status: Physician
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    Unfortunately, you’re going to run into paperwork whether you decide to take a mortgage or pay cash. Just let it slide off your back. If they ask for more documents, email them. It only takes a few seconds.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #221242 Reply
    Liked by Zaphod, Craigy, Tangler
    Avatar Tangler 
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    Status: Physician
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    Joined: 08/23/2018
    we would pay 20% ltcg on any gains 

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    no NIIT?  sorry, as I’ve explained elsewhere, a pet peeve not to mention that.

     

     

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    Ok, sorry showing my ignorance. What is NIIT? sorry and thanks

    #221339 Reply
    Avatar Tangler 
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    Status: Physician
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    Joined: 08/23/2018

    Unfortunately, you’re going to run into paperwork whether you decide to take a mortgage or pay cash. Just let it slide off your back. If they ask for more documents, email them. It only takes a few seconds.

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    Thank you! Yes, great advice.

    #221340 Reply
    CordMcNally CordMcNally 
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    Status: Physician
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    Ok, sorry showing my ignorance. What is NIIT? sorry and thanks

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    Net investment income tax.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #221345 Reply
    Liked by Craigy, Tangler, Peds
    Avatar G 
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    Status: Physician, Small Business Owner
    Posts: 1799
    Joined: 01/08/2016
    we would pay 20% ltcg on any gains 

    Click to expand…

    no NIIT?  sorry, as I’ve explained elsewhere, a pet peeve not to mention that.

     

     

    Click to expand…

    Ok, sorry showing my ignorance. What is NIIT? sorry and thanks

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    net investment income tax.  3.8%.

    I’m really beginning to think that this would make a great research project:  “NIIT, the hidden tax: lessons learned and future considerations for quietly extracting revenue from the ‘wealthy’.”

    #221348 Reply
    Liked by Zaphod, Tangler, Tim
    MPMD MPMD 
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    Status: Physician
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    Joined: 05/01/2017

    Most of what you’re complaining about is a result of Dodd-Frank.  All the paperwork, questions, paper trails, etc. is all part of the regulation that our wonderful government passed for “consumer protection”.  Big cash transactions are also going to create some headaches as you start dealing with Patriot Act issues and more regulations from our wonderful government (thank god we have Big Brother to look out for us!).  It has nothing to do with the particular lender that you’re working with, they’re just following the rules that are in place, just like any other lender would have to do. At the end of the day, it’s really not that big of a deal.  If it helps, just think about how much money you’re saving by not paying CG and cash for the house and think of that as how much you’re being paid to deal with the additional paperwork.

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    Were there any lending practices leading up to 2010 that provoked that regulation I wonder?

     

    I do feel the pain on this. We did an MD loan for a house that was like 1.1-1.2X our salary a few years ago. They needed documentation on every transaction. I wrote a guest post about this years ago I had opened a retail credit card the year before b/c I figured I’d save 10% on my dress clothes once a year. It nearly sunk the mortgage. At one point I was pointing out the lender that they had literally just nearly destroyed the global economy giving money to everyone and now they were about to deny 2 docs an extremely conservative home loan.

    #221362 Reply
    Avatar Tim 
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    Status: Accountant
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    Joined: 09/18/2018

    “ At one point I was pointing out the lender that they had literally just nearly destroyed the global economy giving money to everyone and now they were about to deny 2 docs an extremely conservative home loan.”

    1)The rules were abused due to government intentional actions. Everyone deserves a house loan, low or no documentation and the government guarantees.
    2) Cash is a currency so let it go with low or no documentation.

    In each, banks were protected for bad actions, even with knowledge. We all know that common sense is not common when it comes to government.

    1) Why do you have to show a drivers license to deposit $100 cash?
    2) Why does one need to “prove” where funds originated that are clearly legally your own?
    3) Why is it easier to vote ?
    Because someone wrote up 10 rules to fix bad behavior of others. Sometimes 3 years employment means “any proof. The “proof “ is meaningless, it is one of the 10 requirements. A $1mm loan or $100 deposit, government greater the problem and created steps that are easily bypassed by those running a scam.

    If a lender or bank sniffs something is amiss, there is hell to pay if all 10 steps have been completed. Common sense leads to accusations and denial of rights.

    It’s the price we pay for “free market”. It’s not reall free, it’s follow the 10 rules.

    #221372 Reply
    Liked by Tangler
    Avatar Kamban 
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    Status: Physician
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    . Anyone else hate this process? 2. Am i a jerk for getting annoyed? 3. Anyone pay cash just to avoid this hassle? 4. Financially how dumb is it really to pay cash from stocks with LTCG?

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    I decided that for what hopefully is my final house that is being constructed, I will not beg or grovel to the lenders for a construction loan. I accumulated cash over the years and will the help of some investment income I am paying cash in stages over a year of construction. The builder said I can apply and get a mortgage at the end of the process when I am ready to move in. No way – I will just live in a fully paid off house. No mortgage, not paying interest alone for the first 5-7 years etc. Just pay the utilities, property taxes and odds and ends and enjoy a stress free house.

    #221376 Reply
    Avatar Tangler 
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    Status: Physician
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    Joined: 08/23/2018

    NIIT, good lord, these taxes are too complex.
    yikes, 23.8% makes me less than excited about cashing out stocks. This is a good article on NIIT
    https://www.thebalance.com/net-investment-income-tax-3192936

    #221397 Reply
    Liked by G
    Avatar Tim 
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    Status: Accountant
    Posts: 3043
    Joined: 09/18/2018
    Earnest refinancing bonus

    I paid cash. The lot and builder. Title insurance guarantee keeps surprises away. Yup, taxes take a chunk. I paid them the year before. Self financing locked in.

    #221403 Reply
    Liked by Tangler
    Avatar SLC OB 
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    Status: Physician
    Posts: 560
    Joined: 06/23/2018

    Every time I buy a house (not often, last was 6 years ago, prior to that was 16 years, etc.) I tell my brother, who is a former real estate agent, “Do NOT ever go back to that!”  The whole process is horrible.

    Just get through it and enjoy your home. It will be fine once you close.

    Interesting on the NIIT, I had to read about it too.

    Nice work on saving up the cash for a $700K down payment and having $4M in the bank! Impressive!

    #221427 Reply
    Liked by Tangler
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1799
    Joined: 01/08/2016
    Interesting on the NIIT, I had to read about it too.

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    NIIT, good lord, these taxes are too complex.

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    coming from folks that spend time on a finance forum….

    so can I reiterate:

    “NIIT, the hidden tax: lessons learned and future considerations for quietly extracting revenue from the ‘wealthy’.”

    Click to expand…

     

    #221429 Reply
    Avatar Dont_know_mind 
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    Status: Physician
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    Joined: 11/21/2017

    THANK YOU! Yes,

    I pay in cash now for properties. There’s still hassles though.

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    Do you buy rentals for cash? What kind of hassles do you see? I guess I might just be a little tired too (really hard day at work yesterday, nonstop for over 13 hours with high stress, I imagine my tolerance for bs decrease in direct proportion to how much stress / pain / lack of sleep

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    I settled on a property last month, buying from a listed company in a company structure myself. They wanted my company information to show I wasn’t a terrorist organization. But they could have gotten this public information themselves, so it was annoying. Last week the real estate agent sent me a bill for $200 to have the ‘for sale’ sign removed. Which I thought was ridiculous.

    Actually transacting a house and then moving is very stressful. Make sure you look after yourself, particularly when moving.

    #221557 Reply
    Avatar Gamma Knives 
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    Status: Physician
    Posts: 169
    Joined: 06/25/2017

    Last week the real estate agent sent me a bill for $200 to have the ‘for sale’ sign removed. Which I thought was ridiculous.

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    $200 to remove the sign? That wasn’t included in the ~3% commission? I think I would throw that bill in the trash.

    #221611 Reply
    childay childay 
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    Status: Physician
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    Joined: 01/09/2016

    Last week the real estate agent sent me a bill for $200 to have the ‘for sale’ sign removed. Which I thought was ridiculous.

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    $200 to remove the sign? That wasn’t included in the ~3% commission? I think I would throw that bill in the trash.

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    Maybe it was a billboard

    #221627 Reply

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