New House, First Time Buyer, Bank Loans (neighborhood, school district)

[MissDaisy]

Originally Posted by Beto

Here you go.

Internal Revenue Service
P.O. Box 660308
Dallas, TX 75266-0308

Thanks for the info Beto--but we are still in CA, with our Conroe home leased
out til prices stabilize and we can sell our CA home and move to TX...

Perhaps you could be a dear and get me an address closer to our current location???

[MDMontemayor]

Originally Posted by Poltracker

The point that person was trying to make is similar to what I replied to your other post. Based on the questions you have asked, and your thought to use a credit card for a downpayment (very wrong thing to do), you are clearly not well-educated in the home buying process and would benefit from having your own RE agent or attorney assisting you. The RE agent who owns the home and is selling it to you is NOT looking after your best interests. She is not obligated to do so. She is obligated to look after her client's interests, her own in this case. She is not obligated to explain available options, contract terms, etc. with you. If you do not have your own representative to do this, you must do it yourself and this could end up badly or not entirely satisfactory for you if you are not familiar or educated in the process. I am not saying it could not be done, but mistakes are easy to make.

Very well put. The listing agent is the only one benefiting from this. She is saving money that she would have to pay to your agents and she is most likely not giving you the best deal or showing you what market value is on the house. Just think real hard before agreeing to anything without an agent to represent you. As already mentioned, it may be able to be done without any problems but why would you risk it when you don't have to pay a dime to have a Realtor represent you???

I wish you the best of luck and hope you have no problems.

~Mark

[houston-nomad]

Originally Posted by MDMontemayor

As already mentioned, it may be able to be done without any problems but why would you risk it when you don't have to pay a dime to have a Realtor represent you???

I agree 100%. We bought our first home without a Realtor and I see in hindsight what a mistake that was... I'm sure a Realtor would have saved us some money. We got really lucky and had no problems, but we would have been much safer with a trusted Realtor helping us out. I feel like a big dummy now for not realizing that at the time.

[marykate1]

Hi MDMontemayor,

Realtor does cost money when you agreed to buy the house. And Realtors takes a big chunk usually 3-4K. We contacted few realtors and they were not even capable of showing us good houses. They told us exactly this "You have already seen all the good houses by yourself".

[marykate1]

We called Wachnovia and they told us that FHA is 3% down payment but the APR is above 7%. They told us that with 5% down we will be in different plan (NOT FHA) I think conventional and get 6.75% APR.

Originally Posted by LJarrett

FHA is 6.5% with a 3% down payment.

This is the link to the TDHCA which is the department that administers the bonds and MCC program:

Texas Department of Housing & Community Affairs - TDHCA

[MDMontemayor]

Originally Posted by marykate1

Hi MDMontemayor,

Realtor does cost money when you agreed to buy the house. And Realtors takes a big chunk usually 3-4K. We contacted few realtors and they were not even capable of showing us good houses. They told us exactly this "You have already seen all the good houses by yourself".

Yes I do get paid for doing my job, however, you don't pay me as a buyer, I get paid from the sellers proceeds at closing. The listing agent is going to keep the pay that would usually go to your agent. We get paid for our knowledge just like anyone else that works. You wouldn't believe the fees I've seen people pay at closing when they did not use a Realtor. I know a licensed Real Estate Agent that uses a Realtor when he buys his investment properties. If you are not 110% sure of what you are doing then please consider hiring a Realtor or Attorney to represent you.

~Mark

[LJarrett]

Originally Posted by marykate1

We called Wachnovia and they told us that FHA is 3% down payment but the APR is above 7%. They told us that with 5% down we will be in different plan (NOT FHA) I think conventional and get 6.75% APR.

Really? I just closed one at 6.5% on Tuesday. Bankrate.com showed today's FHA average at 6.54%. I believe banks and lenders can't make over a certain amount for FHA loans. I really think you should contact a broker rather than just talking to the bank. I think you could get a better rate with what you said your credit score is. Shop around.
Like the previous poster said, Realtors dont get paid to just show you the house. They get paid for their expertise and to help you through the entire process. See, you're on this board getting advice and already Realtors have given you advice and contacts that will save you money.

[marykate1]

Hi LJarrett,

Is there anyway we can try for 3% down with 6.5% APR without using a broker? We don't really want to involve a broker since he will take a huge chunk and right now we are not in a position to spend extra $3000-$4000 for these things.

[LJarrett]

Originally Posted by marykate1

Hi LJarrett,

Is there anyway we can try for 3% down with 6.5% APR without using a broker? We don't really want to involve a broker since he will take a huge chunk and right now we are not in a position to spend extra $3000-$4000 for these things.

Well, only brokers or banks can do loans. Like I said, shop around and ask what their fees are and how much they make on the front and back end. Bank fees can be higher than broker fees. Ask for a Good Faith Estimatefrom 4 or 5 different sources and go with the best. In my experience, I have usually seen better deals from brokers because they can shop for the best loans.

[marykate1]

Hi LJarrett,

Thanks a lot for all your help!

How much does the brokers usually charge for their work?