anyone in realestate or mortgages?

**gixxerboy1** · 12-23-2013, 10:54 PM

We are looking at buying something this summer, or moving in my summer so i guess we would start looking in the spring.
Kinda trying to see if there is anything i should start doing now. Already have a friend that is an attorney working on credit report.
This would be our first home. I know there are always programs for first time home buyers. Is that something you have to research yourself. Will your real estate or mortgage broker know and help?
Any good books or anything to read?
Thanks

**Euroholic** · 12-23-2013, 10:58 PM

Go to the bank and see how much they will give you so you can establish a price range. Get a pre approval and look around for a house that suits you

**gixxerboy1** · 12-23-2013, 11:05 PM

Originally Posted by Euroholic

Go to the bank and see how much they will give you so you can establish a price range. Get a pre approval and look around for a house that suits you

I know i can get approved for what we want. We dont want as big a place as we could get approved for. Its just the 2 of us and not having kids. And we have a good amount for a down payment saved and practically no debt

**Euroholic** · 12-23-2013, 11:11 PM

Well sounds like you just need to find a house that you like

**gixxerboy1** · 12-23-2013, 11:24 PM

Originally Posted by Euroholic

Well sounds like you just need to find a house that you like

Thats still a lityle time away, tryibg to find out about all thr programs here to buy a home

**Euroholic** · 12-23-2013, 11:32 PM

Righto well good luck maybe go to a real estate agent you like

**Euroholic** · 12-23-2013, 11:48 PM

http://michaelbluejay.com/house/

I think this is american

**lovbyts** · 12-24-2013, 05:41 AM

I suggest you put at least 20% down so you dont have to pay any PMI

**Lunk1** · 12-24-2013, 10:26 AM

Most banks will require a 20% down payment. You will also want to make sure your debt to income ratio supports the payment. Banks today are towing the line in terms of mortgages after many got the tit in the proverbial ringer. As far a first time buyers programs, I am not familiar with any good ones still in existence. It boils down to 3 things: 1) 20% down, 2) income to debt ratio, 3) credit score.

I would consider buying now instead of spring/summer when rates tend to increase and the market goes up since no one wants to buy a house in the winter.

**gixxerboy1** · 12-24-2013, 10:32 AM

Originally Posted by Lunk1

Most banks will require a 20% down payment. You will also want to make sure your debt to income ratio supports the payment. Banks today are towing the line in terms of mortgages after many got the tit in the proverbial ringer. As far a first time buyers programs, I am not familiar with any good ones still in existence. It boils down to 3 things: 1) 20% down, 2) income to debt ratio, 3) credit score.

I would consider buying now instead of spring/summer when rates tend to increase and the market goes up since no one wants to buy a house in the winter.

If we are going to do 20% we probably would have to wait to summer to save some more. We are "close" to 20% now
Also i have some things on my credit report that shouldn't be there, They are being worked on now by a lawyer. So it may take a few months to get everything clear.

Not sure of programs either, or the limits with them. Had a friend buy a new home this year and they qualified for some programs that helped with down payment, not sure of the details.

**kelkel** · 12-24-2013, 10:34 AM

Christ I refi'd about a year ago and it was F'n brutal. And my credit is near perfect.

**gixxerboy1** · 12-24-2013, 10:36 AM

Originally Posted by kelkel

Christ I refi'd about a year ago and it was F'n brutal. And my credit is near perfect.

ugh, she has really good credit , never late on anything ever. But has some credit card debt. I have some bad stuff on my report but no debt at all

**gixxerboy1** · 12-24-2013, 10:38 AM

we are still trying to decide between a town home or house too

**Lunk1** · 12-24-2013, 10:40 AM

Originally Posted by gixxerboy1

If we are going to do 20% we probably would have to wait to summer to save some more. We are "close" to 20% now
Also i have some things on my credit report that shouldn't be there, They are being worked on now by a lawyer. So it may take a few months to get everything clear.

Not sure of programs either, or the limits with them. Had a friend buy a new home this year and they qualified for some programs that helped with down payment, not sure of the details.

Credit Unions can have some better rates and ne more lenient with the 20%. I would make a call to your local bank (home loan dept) and ask what they will require. They will also have any info on incentives and programs available. Mortgage lenders are good ppl to be friends with

Don't forget to negotiate your interest rate by checking with several lenders. Banks compete for business and they have wiggle room in the rates that they offer. it's no different than buying a car.

**Lunk1** · 12-24-2013, 10:41 AM

Originally Posted by gixxerboy1

ugh, she has really good credit , never late on anything ever. But has some credit card debt. I have some bad stuff on my report but no debt at all

Bad credit is better than NO credit to a degree. If you get get in the 800's you will be able to secure the best rates but even in the 700's you should have no prob financing.

Also I would suggest staying with a bank that handles the loan in house vs selling it out. Much easier if a bad situation occurs.

**Cuz** · 12-24-2013, 10:52 AM

I think Igifuno is into real estate he might be of help

**JJ78** · 12-24-2013, 11:49 AM

Gixxer,

We bought our house last year. My wife is a first time home buyer. She qualified for an FHA Loan. She had pretty good credit. 720 No debt. We put down 4%, not 20% Do an FHA loan not conventinal mortgage. We do have to pay mortgage insurance of $100 every month.

But we are going to refinance and get a different loan soon, if we dont sell. We are up about $70K in a year.

Like Lunk said, for mortgages the only thing that really matters is score, and debt to income ratio.

Good luck.

**JJ78** · 12-24-2013, 11:50 AM

O and our rate is 3.65%, nice!

**Sgt. Hartman** · 12-24-2013, 01:00 PM

You don't have to put 20% down on a conventional, your loan amount just has to be 20% less than appraised value. Most mortgages are FHA now anyway because they have much better programs.

**Lunk1** · 12-24-2013, 01:07 PM

FHA loans are a great way to go for many first time homebuyers but they do have some restrictions and can be more time consuming. It's important to weight the differences between a traditional mortgage and Govt backed programs.

20% is not a hard and fast rule. It would also depend on if you were financing 100% or more or if you were starting with equity in the property. If you can buy right and start have equity in the home, then banks are much more willing to finance.

As far as Town House vs a traditional home? No question IMO. A traditional home. Many Town homes come with covenant restrictions. I am not about to have someone tell me what I can and can't do on my own property (within reason). I also don't mind neighbors but literally sharing a wall between us is to close for me. A 10-15 ft lot line I can deal with but not a shared lot!

**Lunk1** · 12-24-2013, 01:09 PM

Originally Posted by Sgt. Hartman

You don't have to put 20% down on a conventional, your loan amount just has to be 20% less than appraised value. Most mortgages are FHA now anyway because they have much better programs.

20% down is based on 100% financing. I should have been more clear.

**lovbyts** · 12-24-2013, 01:25 PM

If you have to wait until summer before you have the 20 percent then wait until summer because in the long run it will save you more money than you can imagine.

**Cuz** · 12-24-2013, 01:47 PM

good luck with the 20%, unless you are loaded forget it. I put down nothing on my first home and got a 3.875 rate with less than perfect credit amd alot of debt. my advice, keep looking and make sure you find the one you want. make a checklist of each of tje things your new home has to have and then compare with others. I would start looking now tbh.

**gixxerboy1** · 12-24-2013, 01:58 PM

Originally Posted by chadcuz1985

good luck with the 20%, unless you are loaded forget it. I put down nothing on my first home and got a 3.875 rate with less than perfect credit amd alot of debt. my advice, keep looking and make sure you find the one you want. make a checklist of each of tje things your new home has to have and then compare with others. I would start looking now tbh.

The 20% isnt an issue, we are close to that saved now of asking prices of things,we like

**gixxerboy1** · 12-24-2013, 02:00 PM

Originally Posted by Lunk1

FHA loans are a great way to go for many first time homebuyers but they do have some restrictions and can be more time consuming. It's important to weight the differences between a traditional mortgage and Govt backed programs.

20% is not a hard and fast rule. It would also depend on if you were financing 100% or more or if you were starting with equity in the property. If you can buy right and start have equity in the home, then banks are much more willing to finance.

As far as Town House vs a traditional home? No question IMO. A traditional home. Many Town homes come with covenant restrictions. I am not about to have someone tell me what I can and can't do on my own property (within reason). I also don't mind neighbors but literally sharing a wall between us is to close for me. A 10-15 ft lot line I can deal with but not a shared lot!

We have been living in apartments/ town homes now. So know what its like, difference would be final location, if close to downtown we would go town home

**JD250** · 12-24-2013, 02:18 PM

The financing will work out with a little effort, You better start making a list of everything you want in a home and get it narrowed down to things you MUST have, start now and save yourself sleepless nights down the road, find a contractor or someone you can trust to help inspect any potential purchases. I know you were asking about finances and programs but there really aren't many available right now. Good luck, hope you find a killer deal!!!

**Cuz** · 12-24-2013, 02:19 PM

Originally Posted by gixxerboy1

The 20% isnt an issue, we are close to that saved now of asking prices of things,we like

if I had it I would have put the cash down, we didn't have 40 -grand saved up.

**Lunk1** · 12-24-2013, 02:19 PM

Are there a lot of foreclosures in your area? If you are willing to put some sweat equity into a home, you would be amazed how much you can get for your $.

**lovbyts** · 12-24-2013, 02:54 PM

Originally Posted by Lunk1

Are there a lot of foreclosures in your area? If you are willing to put some sweat equity into a home, you would be amazed how much you can get for your $.

True but be prepared to have deep pockets and a lot of headaches.

I put 20% down =$60, 000 you have to pay any attorney fees up front also = $10, 000 and then we put in $60, 000 for remodeling (extensive) + a few surprises and problems along the way.

**gixxerboy1** · 12-24-2013, 03:14 PM

Originally Posted by chadcuz1985

if I had it I would have put the cash down, we didn't have 40 -grand saved up.

i def understand that, we have been saving

Originally Posted by Lunk1

Are there a lot of foreclosures in your area? If you are willing to put some sweat equity into a home, you would be amazed how much you can get for your $.

i def dont want something that needs work. Maybe normal stuff like we might want to paint or change a carpet or something. But nothing big

**DeniZen** · 12-24-2013, 03:27 PM

There are really only three choices unless you are a veteran

1. FHA with a 3% down payment. The loan with have mortgage insurance paid monthly. (Its called M.I. for a FHA loan)

2. Conventional Financing- 20% or more down payment

3. Conventinal Financing- less that 20% down. Most people do 5% or 10% down. The loan wll have PMI (private mortgate insurance) paid monthly.

I strongly suggest using a well established local mortgage broker. Big banks are slow and ineffective.

Edit: Its also good to find a realtor/mortgage broker team. Usually successful RE Agents work closely with a mortgage broker that has consistently closed loans in a timely manner and delivered the best mortgage product to the buyer.

**Cuz** · 12-24-2013, 03:33 PM

Originally Posted by DeniZen

There are really only three choices unless you are a veteran

1. FHA with a 3% down payment. The loan with have mortgage insurance paid monthly. (Its called M.I. for a FHA loan)

2. Conventional Financing- 20% or more down payment

3. Conventinal Financing- less that 20% down. Most people do 5% or 10% down. The loan wll have PMI (private mortgate insurance) paid monthly.

I strongly suggest using a well established local mortgage broker. Big banks are slow and ineffective.

When i bought mine, i got a "USDA" loan, which qualifies you for 100%financing, there are certain zones that are usda zones, the house we liked just happened to be in one, thank goodness. It mainly consists of rural areas outside of the city but it can be within the city it depends on the county in which state you are in. My MI is not much, like 30-40 bucks a month. I took the money is saved and put it into the house rather than downpayment, i didnt have enough to make a big enough impact on my payment so i just invested it in the yard/landscape and kitchen, put 10000 in and got about 20000 back out of it.

**APIs** · 12-26-2013, 01:57 PM

Get a pre-approved letter from your bank when you're ready to buy. Sellers will take you seriously over all the posers out there...

**DontTaseMeBro** · 12-26-2013, 02:09 PM

I am in the business. Its a good idea to research lenders early in the process. The fees on conventional loans are all over the board. Lenders who do FHA / VA loans are much more uniform. USDA has some great programs; however, they are often geared toward lower-income purchasers and have strict requirements for the type of property that qualifies. Regardless of which route you go, be ready a lengthy process. It has gotten really complicated in the past 7-10 years and the new federal consumer protection legislation makes things even more time-consuming. In my experience, it is about 45-60 days from the time you sign a contract until you close, even assuming there are no bumps along the way. Best wishes.