Which comes first loan or home?

Question

I'm looking to buy my first aparment or condo in Queens, NY. Should I look for a realtor first? Will they help me find the right loan and apartment or do I need to find the loan first?

Answer 1

YOU should get approved first - that way you know how much you can afford....Some things to consider:

Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Decided on the type of program (loan ) you are wanting. A 30 yr fix is still roughly at a 6.5 rate right now - but if you are needing a 90 percent ltv the rate is around 7 percent and a 95 ltv is 7.375 and a 100 percent rate is 7.5 ( This is a estimate only, since I do not know what your credit score's are....There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

Go to these websites: There is a First TIme homebuyers guide on them - plus alot of information...

http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/


Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information. This is not an advertisement - just helpful information for you...

Answer 2

Ask your friends for a good mortgage broker. They'll help you get pre-qualified or pre-approved for a mortgage. Once you have an idea how much you'll be able to spend ask around for a realtor. Understand one thing, the realtor makes a percentage of the purchase price, so they have an incentive for you to pay as much as possible (maybe even overpay for a property) and to do so as quickly as possible. This isn't a knock on all realtors. It's just important for you to know how they get paid and what their motivation is. The realtor doesn't work for you and won't be on your 'side'.

Home ownership is a great thing. It's great for your long term financial well-being.

Good luck.

Answer 3

If you are a buyer (which you are), then ALWAYS use a broker if you can. They usually have to split fees with teh seller's broker. You need someone to represent you to get the best deal. As far as the loan vs. home debate...you'll need to talk to bankers...look up any bank you'd like to work with and talk to any loan officer...they get paid to set up loans, so they'll all want to talk to you. Let them tell you exactly what you can afford. Then, go look for a realtor/broker and they'll find you the perfect home.

Answer 4

You have to be approved for a loan first. Once approved then you can look at homes in that price range. So, yes get a realtor first.

Answer 5

look for a realtor and they will be able to help guide you towards a loan as well as a place. They will know many loan officers. Be sure to go to your bank as well to see what you will qualify for. Keep your borrowing options open.

Answer 6

go see a realtor. all realtors have lenders they know and trust. they can get the entire process started at once. this way the realtor will know exactly what price range you can afford as well as what you need and want. go to www.weichert.com click on the link for agents offices. pick one near you and give them a call. tell them dan roemer with weichert realtors in frisco texas referred you

Answer 7

Most real estate professional prefer to work with clients who are already pre-qualified or pre-approved for a loan. I suggest going to the bank in which you do business to begin the process.

Answer 8

In most cases..especially here in New York..sellers require a pre-qualification letter before they will sign a contract...call a real estate attorney (you're going to need one of them too) and they will be able to steer you in the right direction...I know of a great one on Ave U in Brooklyn..he did both of my houses for me..(Im out on the island)...email me if you want his number ([e-mail])..the pre-qual letter is really a bunch of BS but it has become a necessity in todays market (at least in our area) Take Care and good Luck.....

Answer 9

do it yourself- get pre-approved for aloan this way youknow your price range. then look for a place to live

Answer 10

you can do it either way but gettin preapproved is a good way to go