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Wanted to highlight Prudential Financial’s hiring practices. They rescinded my offer once I attempted to negotiate the salary. The official reason given was that I didn’t “sound excited enough”.
They then admittedly gave the offer to someone who was less qualified. There were other red flags throughout the job offer process that the HR team should overall be ashamed of.
Happy Monday! Heads be rollin today 🙃
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Coach
I’ve done them for first time buyer situations, not the best credit, low down. Rate will be higher plus you pay PMI of a couple hundred a month if you do less than 20% down. You stop paying PMI when you have 20% equity. With a conventional loan, 20% down rates are 6.99-7.12% without buying points. I’m not buying points because I want to refinance in about 24-36 months. ARM is also likely to work out fine for a refinance in a couple years. July timing isn’t great, it’s peak buying time. Now or after September is ideal. Houses sit in winter and when they sit you can make offers 5% lower and they get accepted. Combine seasonality, 20% down, no PMI for a lower monthly payment. Or FHA for retaining more cash in your account but higher payment.
Coach
You can DM. I do have some paid for tools that will assess the properties. It tells me their actual value, expected appreciation, crime, grade of property A,B,C,D. I also look at local schools. Bad neighborhoods have bad schools. Even if I don’t have kids that will attend it’s a search criteria. So my recent property in Arizona was 8 for middle school, 9 for high school, and it’s next to TSMC where they build the chips for NVIDIA 400k. I’ll buy that even in this market. Try to be near employers, best schools, in your price range. You can always change ugly cabinets, outdated flooring, you can’t move the house to a better neighborhood.
FHA rates are higher from what I was told . I just did a 5.75% 7/1ARM with a credit union. Try a CU and you may find a good rate and don’t need fha ..
@PwC1 it has nothing to do with expectations, an ARM (ie, adjustable rate mortgage) means that it will be fixed like a conventional mortgage, but only for a set period of time (usually 5, 7 or 10 years), rather than for the whole duration of the loan.
After that set period of time expires, the rate could go up or down, depending on what the current interest rates are.
But of course, you can always refinance at any time during your loan period. You could refinance after 3 months if you wanted to and were willing to pay the closing costs (or get them waived).
Subject Expert
Although FHA allows for 3% down, you may get a better rate at 10% or 15% down since there’s less risk to the lender. Also, you’re closer to getting PMI removed at those percentages.
What’s “better” depends on your personal financial situation. Hard for anyone else to know what you’re comfortable with from a monthly payment or risk tolerance (since you mention brokerage funds which have some risk in them).
I'm pro 20% down because of PMI requirements with less than 20% down. It will add to your monthly expenses. Ohhh, and if there's an issue, just know PMI is sue happy. Ask me how I know.