Loan type for $0 Down - Urgent advice needed (property tax, credit score, rate)

[newhomebuyer80]

Guys,
after so much home search , I finally decided my home. I am ready to sign the contract on Friday.

After some stupid down payment ideas, I ended up now with only little money for down payment. $8000.

House price is $253,500 (Pearland, TX)

Builder told me, if i do the loan with them , they will give me $7000 closing costs.

what do you guys think about the loan type. What kind of loan I will get. What kind of loan should I select? My equifax FICO score is 754.

I know i need to start the research, its better with some initial ideas.

[renriq02]

I wouldnt be in a hurry to sign..

Some realtors can have the builder knock down the price AND pay your closing costs AND you get to choose your lender.

[chet everett]

renriq is giving good advice BUT it would helpful to hear some details -- LIKE loan RATE & TERM???

Has the builder not spelled that out? If not BE VERY AFRAID!

[newhomebuyer80]

Originally Posted by chet everett

renriq is giving good advice BUT it would helpful to hear some details -- LIKE loan RATE & TERM???

Has the builder not spelled that out? If not BE VERY AFRAID!

Their rate offering comes for 30yr fixed - 6.50 with 1 point, 6.25 with 1.5 points 6.00 with 2 points

[renriq02]

todays' rate was about 5.25-5.375 30yr fixed with 1point
(720+ credit score/20% down)

5.375-5.5% 30yr fixed with 1 point on a FHA loan

I would find a realtor QUICKLY!

Originally Posted by newhomebuyer80

Their rate offering comes for 30yr fixed - 6.50 with 1 point, 6.25 with 1.5 points 6.00 with 2 points

[homesweetazhome]

I agree with renriq. Find a Realtor to represent you with the builder. The agent you are dealing with is representing the builder only. You will not have to pay a Realtor to represent you. The seller pays both realtors. Rates on mortgages have dropped. Don't sign until you talk to your Realtor and your Mortgage broker. If you don't have one, ask for a referral from friends/family.

[newhomebuyer80]

You mean before I do the contract sign, i need to talk with Builder to give me a best deal on LOAN. Or Do I need to wait for 60 days. Please explain me....
what should I do now before closing?

[homesweetazhome]

When you say the contract sign, do you mean the closing papers? or the offer you are making on the house?

[renriq02]

1. find a realtor or a lender. A lender may send you to a good realtor or vice versa.
2. bring the realtor back to the builder, and start negotiating again.


I had a borrower who got a realtor (my advice)

She was going to pay 320 for a house.
When the realtor was done negotiating..she paid 290k with builder paying 7000 in closing costs ...and they used me as the lender.

She saved herself 37k

I hope you're not paying full price or the asking price.

[wankel7]

You really need to do some homework on what rates are right now. Also, like said here you need to get a realtor to represent you and mortgage broker.

It sounds like the builder is trying to take you to the cleaners.

You are buying a very expensive home and I could not even imagine what the property taxes are on that home. $6000 + ?

You need to make an informed decision and coming here is the first step.