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I hope that I am not asking for too much here but knowing how much knowledge and experience is on these forums, I am hoping that some of it can be shared here.
I could name this thread "Share your mistakes and wins when you were buying a house".
Anyway ... in our mid 30s, looking to buy our first house.
1) Have no idea how to pick the right mortgage broker to even get a pre approval letter, etc.
2) We can do 20% down payment on a 450-490K house but I'd be more comfortable with a 17-18%. That introduces a PMI (waste of money, right?) .... then some say that PMI is horrible and you'll have to then refinance to get rid of it, but another person is saying that PMI will go away on it's own after 39 months once I reach 20%.
3) FHA loans>?? huh? This was suggested to me to avoid PMI ... does it even make sense?
Anyway ... as you can see, not enough knowledge and that's when mistakes happen. Any suggestions for a new home buyer..?
3) FHA loans>?? huh? This was suggested to me to avoid PMI ... does it even make sense?
thank you.
FHA has a flat rate PMI charge, plus a yearly PMI charge, You only need to put 3.5% down with it, it's not right for you. 0.85% annual MIP split into 12 months, plus 1.75% upfront PMI, and the PMI never goes away with FHA. on 450k home FHA upfront $7,875 plus $319 a month.
to get preapproved go to a bank or lender with proof of income or/and last years tax forms, they will run a credit check and let you know how much you qualify for.
You are also going to have closing costs of $10K or more but instead of a lower price you can ask for seller concessions of up to 6% of purchase price for closing costs.
. I would pay the 20% down and buy a cheaper home if you have to instead of 17-18% cause it's so close to 20%. With 20% down you don't need to pay PMI
Last edited by LifeIsGood01; 11-27-2015 at 04:49 PM..
I would suggest that you find a good realtor. Drive around the neighborhoods that you like and see if one particular realtor has more signs up than others. They will most likely be the experts in the area. Interview them with your questions and see if their answers seem satisfactory. They will probably be able to refer you to a competent lender that they have worked with before. They might also have "pocket listings" that nobody else knows about. If they can't answer all of your questions, try someone else.
So, getting a pre approval I can get from anywhere and no need to make too long of a trip just because I like the person I spoke to on the phone? Purely for pre-approval papers, it doesn't really matter?
How do you pick the right lender once you're ready to buy?
So, getting a pre approval I can get from anywhere and no need to make too long of a trip just because I like the person I spoke to on the phone? Purely for pre-approval papers, it doesn't really matter?
How do you pick the right lender once you're ready to buy?
Yes once you get a preapproval from one lender you should be okay and should qualify with other lenders.
Ask your Real Estate Agent to recommend someone local who is really good at getting things done fast. That's how I found the bank and loan officer that I'm using, she's great, you can call her at work or on her cell phone and she answers emails fast too.
Yes once you get a preapproval from one lender you should be okay and should qualify with other lenders.
Ask your Real Estate Agent to recommend someone local who is really good at getting things done fast. That's how I found the bank and loan officer that I'm using, she's great, you can call her at work or on her cell phone and she answers emails fast too.
Is it an issue that lender resides in NJ where I am but house I am looking is in Staten Island, NY. ?
May I point out that you aregetting advice from people who in some cases have only ever purchased 1-2 homes in their lives?
I've purchased 4 homes and refi'd countless times. I also worked as a loan officer many years ago. And in a million years, i wouldn't be suggesting what kind of loan you should get with this limited information. (Except this: put 20% down, even if you have to wait to buy, get a gift from somebody, or lower your price.)
I would suggest that you start with a lender, preferably a broker who has access and knowledge of many products. How to find this broker? Ask people in your local area (work, social contacts, your CPA, your attorney, etc.) who you believe are financially savvy. Get a few recommendations. Local brokers are more comfortable for hand holding, but don't shy away from doing this over the phone and online.
And - ask your questions about mortgages on the mortgage board of this forum. There are a few really helpful, knowledgeable mortgage experts over there.
Is it an issue that lender resides in NJ where I am but house I am looking is in Staten Island, NY. ?
I'm not sure, but for preapproval it shouldn't matter. Many banks are in the tri state area so if they have branches in NJ and NY it shouldn't matter. But I don't think it matters anyway because there are online lenders that do not have to be in the state you are in, but they may need to be qualified to lend in your state.
Preapproval servers 2 purposes. It lets you know how much you can afford to buy a home for, and it lets the realtor know that you are a serious and qualified buyer.
The lender I spoke to on the phone was helpful and said that few things separate his company from places like Chase and BOA is .... 1) They move faster to provide mortgage (average under 30 days) and 2) He'll give me a pre-approval letter and if I don't find a house within 90 days, he won't need to run my credit again to update that letter ... he'll just need to see my latest pay stubs and he'll provide a new pre approval letter.
We can do 20% down payment on a 450-490K house but I'd be more comfortable with a 17-18%.
Quote:
Originally Posted by so954
I would pay the 20% down and buy a cheaper home if you have to instead of 17-18% cause it's so close to 20%. With 20% down you don't need to pay PMI
I have purchased over 15 properties during the past 40 years, and currently own 3. The #1 smartest thing you can do is to buy something well under what you can afford. Never exceed your comfort level, and never buy to impress others. Always assume that your circumstances will change; sh*t happens to all of us.
Quote:
Originally Posted by Pianist718
How do you pick the right lender once you're ready to buy?
It doesn't matter one bit. Before the ink is dry on the papers, that loan will be sold. An investment bank will buy it, sell it as securities to investors, and become the trustee for those investors. You will never find out who the trustee actually is. You will then deal with a "servicer" who will bill you and collect the payments.
Once in awhile a lender keeps a note in their own portfolio; that is the exception, not the rule.
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