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Old 06-02-2008, 10:27 AM
 
101 posts, read 365,198 times
Reputation: 49

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I was wondering if anyone could help me out with a couple questions regarding mortgages... Me and my hubby will be moving to the W-S area in the next couple of months. We are planning on renting for a little while so we can determine where exactly we want to be.. Anyway my questions are:
1 We have pretty decent credit, with no debt. how hard would it be to qualify for a first time home buyers loan?
2 being completly new to the home buying process do the seller and buyer usually split closing costs?
3 how much of a down payment are we like at for around a 130k house? Or do they still have programs available with 100% financing?
4 I think i saw a program for down payment assistance does anyone have any experience with this?

Since we are making a pretty big move (FL-NC) Its going to be pretty expensive and not leave us a lot of room for big down payments. And I don't know how long it will take us to get back to where we are currently financial wise anyway. But we don't want to miss out on the great house prices..

Anyways thanks for any info you can give me!!
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Old 06-02-2008, 12:56 PM
 
247 posts, read 952,109 times
Reputation: 79
1) You should be able to qualify for a loan. The amount will depend upon your salaries.
2) No. There are closing costs that the seller has to pay and there are closing costs that the buyer has to pay. Usually the buyer has more closing costs to pay. However, what some buyers do is request that the seller pay their closing costs when they offer a bid on the seller's house.
3) Since it sounds like you are a first-time buyer you would probably qualify for an FHA loan (which usually 3% down).
4) No and personally I would steer away from those.
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Old 06-02-2008, 12:59 PM
 
Location: Winston-Salem
4,151 posts, read 7,726,778 times
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I don't work in the real estate or mortgage industry, but to answer question 2, it's whatever you can negotiate and how desperate the seller may be.

With regard to all your other questions, check out the North Carolina Housing Finance Agency. It should be a good resource for you.
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Old 06-02-2008, 08:48 PM
 
676 posts, read 2,951,972 times
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I am a relative rookie to home buying, but I know we did it right by asking for the seller to cover closing costs. We actually did it like this, we asked for the price to be lowered by $4000 which exactly covered our closing costs on a $160, 000 house. Now, this was two years ago before everything went crazy with loans and the housing market. I think you can get a lot more now from the seller, but probably stricter requirements with the loan. I would recommend trying for a traditional 20% downpayment, 30 year fixed loan and asking for closing costs to be covered by seller. You may even get that and a lower asking price. We have a house on our corner in a nice neighborhood that has been for sale the whole 2 years we have lived here, so it could have been on the market even longer!
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Old 06-03-2008, 09:24 AM
 
Location: Winston-Salem
273 posts, read 899,422 times
Reputation: 193
First, good luck with your move. My wife and I moved here almost a year ago (hard to believe it's been that long!) We did the same, rented for a couple of months and then purchased a home after we were comfortable enough, knowing the "good" areas and "not so good" areas. Now to answer your questions,
1)... You shouldn't have much problem, the lenders are getting a little more strict, but depending on the specifics you should definetly look at an FHA.
2)... Like it was said before, it all depends on what you can negotiate. The market is softer now and some people have been trying to sell for months if not longer. When we bought, the price was already about right, so we asked for them to pay all the closing costs, pay for a warranty(which you can ask for, costs vary but usually about $500), and dropped the price $3,000. We got everything we asked for, and that was with other offers involved. But it really depends on the property and the sellers situation.
3)... This depends on the financing involved. If you go with a FHA, it's around 3%, most traditional loans are a minimum of 5%, but require you to pay PMI(private mortgage insurance) until you have equity in the home of 20%(usually adds $20-$50 a month to the mortgage). Given the current situation of the whole industry, many are shying away from low down payment loans. One thing to look for, if either you will be working for the state, police officer, fire fighter, teacher, etc... look at the State Employee Credit Union(State Employees' Credit Union). We arranged our mortgage through them since we were in a similar situation with moving costs and other things. They offer several different loan options, all offering 100% financing with no PMI. We opted for a 5-yr ARM which only adjusts every 5yrs for the life of the loan (not a 5/1) with a 20 yr term. At their current rate 5.25%, it's a very good deal. The folks we dealt with were extremely friendly and were polar opposites compared to several of the banks we tried.
4)... As stated prior...watch out for these.

Hope I didn't bore you with that, let me know if you need any additional information on this, it's still fresh in my mind! I would suggest doing a bit of research on your own regarding the subject of mortgages and buying a home. There was a lot I didn't even think about until I read up on it and then went through the process, it helps a lot. One thing I will throw out to you, if you really are not sure about living here, or you don't plan on living here for AT LEAST 5 years, and don't plan on putting a lot of money down, I would strongly recommend renting. There are a ton of costs involved in selling a home and it does take at least 5 years to basically break even when you sell a home, and that's not factoring in if the economy stays stagnant and homes don't appreciate.
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Old 06-03-2008, 10:43 AM
 
Location: Greensboro
627 posts, read 1,969,251 times
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FHA, 3% down, best deal in town!
Ask the seller to pay some of the closing cost too!
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