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Old 04-22-2013, 08:47 AM
 
11 posts, read 10,230 times
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Quick question, could use some advice.

First time homebuyer, always rented. Great credit (my wife and I are going to be on the mortgage) with good, stable incomes and no major debts.
Looking at houses around 350k, but only have a max of 5% able to put down.

We talked to a family friend who referred their lender, who said to "apply on our website." Now I know lenders are like anything else, and you need to shop around, but won't filling out several applications allow them to pull your credit score several times, which doesn't look good and drop it?

Also, any reccomendation as to what kind of loan to go after, either an FHA 3.5% or 5%? Again, we both have good jobs and incomes and save well, but don't want to be kicking ourselves later.
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Old 04-22-2013, 09:36 AM
 
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Conventional. With your credit you will likely get around 3.625% on a 30 year fixed, with monthly mortgage insurance at about $150 a month until the loan balance is less than 80% of the value.

What State are you buying in?
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Old 04-22-2013, 09:41 AM
 
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Also, you might read some of the "venting" and horror stories on this board, wherein people evaluated ONLY the rate, and had no idea they were also working with companies that employed human beings.

You will encounter a wide range of factors in this area. How long has the person you are talking to been in banking? Do they answer the phone? How is their grammar? What is their process like - - I mean, bullet-pointed from the day you go to contract, through funding? Who does what? Are they going to pass your loan to another bank, making updates hard to get?

I hope to not see you posting frantic, yet basic questions about the mortgage process. You should be very comfortable, and feel very informed, after talking with a good L.O. No scripted BS, no call-center idiots, no jargon, no hemming and hawing because they don't know their own guidelines.

Interview them and make your best choice for you.
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Old 04-22-2013, 09:48 AM
 
11 posts, read 10,230 times
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Quote:
Originally Posted by Pfhtex View Post
Conventional. With your credit you will likely get around 3.625% on a 30 year fixed, with monthly mortgage insurance at about $150 a month until the loan balance is less than 80% of the value.

What State are you buying in?
VA, specifically Northern VA
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Old 04-22-2013, 10:09 AM
 
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VA, great state. 3.625% = $1516 base payment. Tack on taxes, insurance, HOA, and about $150 for PMI.

FHA would come with a slightly lower rate, but twice the amount in monthly Mortgage Insurance, and as of next month, the FHA Mortgage Insurance lasts for the entire loan, whereas Conventional would not.
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Old 04-22-2013, 10:24 AM
 
Location: Austin
7,192 posts, read 17,819,501 times
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Quote:
Originally Posted by FillTheBox View Post

We talked to a family friend who referred their lender, who said to "apply on our website."
How else do you expect the mortgage person to be able to speak with you about specific information rather than generic information? He can't give you a quote without knowing your credit situation, and he's not going to believe your verbal information. It needs to be verified.

Just because he told you to go to his site and fill out the application is no reason to be upset.
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Old 04-22-2013, 11:27 AM
 
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Quote:
Originally Posted by FalconheadWest View Post
How else do you expect the mortgage person to be able to speak with you about specific information rather than generic information? He can't give you a quote without knowing your credit situation, and he's not going to believe your verbal information. It needs to be verified.

Just because he told you to go to his site and fill out the application is no reason to be upset.
Who said I was mad? I was wondering if it was commonplace.
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Old 04-22-2013, 11:29 AM
 
11 posts, read 10,230 times
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Quote:
Originally Posted by Pfhtex View Post
VA, great state. 3.625% = $1516 base payment. Tack on taxes, insurance, HOA, and about $150 for PMI.

FHA would come with a slightly lower rate, but twice the amount in monthly Mortgage Insurance, and as of next month, the FHA Mortgage Insurance lasts for the entire loan, whereas Conventional would not.
I didn't know that. So it seems the conventional 5% would be the way to go then
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Old 04-22-2013, 11:56 AM
 
Location: Austin
7,192 posts, read 17,819,501 times
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Quote:
Originally Posted by FillTheBox View Post
Who said I was mad? I was wondering if it was commonplace.
There was no comma after the word "Now" so it sounds like you were making an angry statement about "Now I know lenders are like anything else..." rather than "Now, I know lenders are like anything else." It's a grammar thing, so I read what you wrote. It sounded like you were upset that your referral just wanted you to fill out the basic form instead of talking with you...

Last edited by FalconheadWest; 04-22-2013 at 01:08 PM..
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Old 04-22-2013, 01:04 PM
 
Location: MID ATLANTIC
7,742 posts, read 18,650,340 times
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I just locked a 3% down, LPMI @ 3.625% 730 score for 30 days on a 300K mortgage
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