In a few years, my husband and I would like to start looking for a home. My credit is okay..His is probably pretty good. I'd like to find something with low interest rates, and something that wouldn't require high closing costs but still have a decent monthly payment. We live in the Central, IL area. So any services geared towards that directions would be great. Thanks :)
2006-06-13 08:06:48 · 7 answers · asked by lilair_the_poet 2 in Business & Finance ➔ Renting & Real Estate
The best resource for these kinds of referrals is a good real estate agent. A good experienced agent will know the good companies to work with.
2006-06-13 08:12:34 · answer #1 · answered by davidmi711 7 · 0⤊ 0⤋
Not sure if your looking for a one stop location to search for the best rate for your credit profile. If that is the case, you would want to try Lendingtree or any on-line service that sells your information to various lenders. However, working in that avenue to obtain a low mortgage rate might not be the best option for you. Since your not looking to purchase right now, this is the best opportunity for you to research the mortgage programs out there so that when the time comes, you will be better equip with the knowledge to know what a good program is and what are reasonable fees. I would suggest that you start with a state bond program. Normally those programs have lower than normal interest rates and are underwritten by FHA standards. Closing costs can be a little higher, however a lot of those programs allow you to roll your closing costs into a 2nd mortgage. With out knowing your credit profile, the best program will be difficult to pin point for you, but start there. Hope this helps, contact me directly if you have any questions.
2006-06-13 08:22:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Now is a good time to start looking....
I would shop out private mortgage brokers and there rates. They tend to beat the interest rates of bigger institutions. Although there origination and discounts can be a little higher. Private companies are more likely to accept a lower credit score as well. If you have anything over a beacon of say 620 you should be qualified. Although your interest will be higher. There also some misconception as far as when pulling your credit, your beacon drops. Not true in my market so you may want to make sure that whoever you are shopping your there is not a mark on your credit. Also in the meantime, donot apply for any new credit. Even if your credit is good, it can only get better and so does your interest rate! Banks also have good programs especially credit unions. Your real estate agent should be able to recommend a good mortgage broker in your area! GOOD LUCK!
2006-06-13 08:18:33 · answer #3 · answered by Bchlvr 4 · 0⤊ 0⤋
Rates will be different in a few years, but if you prepare yourself now, you will help yourself qualify for the best rates at that time.
Make sure that your credit stays good or boost it now, since you have time to work on it.
Start puting some money in savings now. Even if you don't want to put a down payment down, it helps your profile look better to the lenders if you have cash in reserves.
Don't finance anything big (like a car) until after you get in your new home. Don't quit your jobs or switch to a new career between now and then.
There is also a very good free report at:
http://www.first-time-homebuyers-loans.com
that will help prepare you. It is a great resource.
Good luck,
Greg
2006-06-13 14:36:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I would search for a mortgage broker in your area and have them run the numbers with both you and your husbands credit and individually as well....my husband had a better credit rating than me and we ended up using only his numbers to negotiate a rate (when we bought a home my name was not on the mortgage but was on the deed to the house as we live in a community property state)....having my income in the equation was less helpful than eliminating my average credit....also mortgage brokers work with many lenders and can find the right fit for you rather than choosing a lender and hoping that you fit within their terms....in addition to that if you and your husband have time the mortgage broker can also help you take steps to improve your credit....doubtful that you will find that help in a bank!!!!
2006-06-13 08:15:52 · answer #5 · answered by snowflake7575 2 · 0⤊ 0⤋
I would not start searching until you are ready to buy. Having many places check your credit can hurt your score. Start buy talking to your bank (the one with your checking account) Many times they are willing to give you a percentage discount if you have your mortgage payment automatically deducted from your checking account.
2006-06-13 08:21:02 · answer #6 · answered by Andrea C 1 · 0⤊ 0⤋
Try a credit union. They are competitive to banks.
2006-06-13 08:12:38 · answer #7 · answered by Mark A 1 · 0⤊ 0⤋