We want to own?

Question

We went to go and apply for a mortgage and our credit union doesnt do mortgages. Who do we go to? We want a consultant to help us find out what we need to do and so on. Do we go to a bank and find one to work with us?

Answer 1

ask your realtor which mortgage company they would reccommend.

Answer 2

You can go to a bank or you can look on-line. There are web sites like lendingtree.com that will put you in touch with several mortgage brokers so you can shop around. Just make sure that you read everything carefully and you know what you're getting into. If you get an adjustable rate mortgage, you can get a lower monthly payment to start but if interest rates go up your payment goes up too. You should also be careful about interest-only mortgages -- they have low monthly payments, but you're only paying off the interest (no principal), so if you finance $150,000.00 and sell your house in 5 years, you will still owe them $150,000.00.

Just my two cents worth: If you can do a fixed-rate principal and interest mortgage, do it. Your payments may be a bit higher, but your payment will never go up and you'll be paying off part of the house every time you make a payment. Also, it's better if you have at least 10% to put down on a house, but if you don't there are ways they can finance you. You'll probably have to have mortgage insurance, but you can still get a mortgage if your income and credit are good. You can get answers to all your questions from a bank or a mortgage broker.

Answer 3

hey gal- i just went thru 2 years of home shopping and lots of banks and mortgage lenders. I found my bank was NO help. My best advice is to go to 2 or 3 mortgage lenders and go with the person that makes you most comfortable with understanding things. There are hundreds of mortgage brokers out there that just dont care and will try to just get you into a house- not at the best rate. Another suggestion that is really important..if you are a first time home buyer there are things called FHA loans and govt loans for first time buyers. There is also a grant called the AMERICAN DREAM that is for first time buyers. Both of these are monies given that you dont have to pay back if you stay in the home for a certain time frame. And if you do move you dont have to pay interest on paying them back. Many mortgage brokers wont offer these free monies because it takes money out of thier pocket and helps you. There are hundreds of gvt programs that help you own a house ...take advantage of them! When you find the broker that still offers you these things and to help you and is not all for themself....go with them! But bring up these grants when talking to mortgage brokers and see if they help you. Good luck!

Answer 4

Shop shop shop that mortgage around. Find a place that will guarantee their quotes in writing. Find a backup loan.

Both the best and the worst loan officers work at brokerages. A brokerage *can* give you a better deal, but the question is *will* they?

Being first time buyers, you probably need a lot of consumer education, both on the mortgage process and real estate. The real estate category at http://www.searchlightcrusade.net is one of the best ones out there.

Answer 5

Ava,



Being a first time homebuyer there is a lot you will not know about owning a house. For example, the other costs that are associated with home ownership besides just the house payment. You also need someone to educate you on what types of loans are available for someone in your situation. There are many good, low or no down payment, fixed rate programs available. You need to stay away from high cost, high rate, 2 years ARMs if your credit and income situation allows it. Otherwise you may be facing a financial hardship in 2 years.

I am a mortgage banker and a former CPA. Our company is licensed in all 50 states. If you are serious about having someone honest and upfront work with you please contact me at [e-mail] and I will give you my work contact information.

Answer 6

Would you consider delaying your plan for 6 months to a year? That would probalby save you 5 to 10%.

http://money.cnn.com/2006/08/15/real_estate/Metro_home_prices_fall/index.htm
http://money.cnn.com/2006/08/23/news/economy/homesales/index.htm

As housing market slump, it is easier to calculate "Rent vs. Buy" scenario. Because "appreciation" is no longer a factor.

Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it.

If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.

For example, let's buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.

Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.

And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.

Answer 7

Start by going to a bank. If the bank is unwilling to do business with you for any reason (with credit history issues being about the only reason that they wouldn't), go to a loan broker. There are lots of them around; in the Seattle area they are advertising all the time.

Answer 8

Go to a bank. Stay away from mortgage brokers. Most banks will give you a mortgage. Go to http://www.bankrate.com/ for more answers to your questions.

Answer 9

I would talk with your realtor and they will find someone who will work with you in regards to your individual situationa dn theyw ill also help walk you through the process.
You may also want to think about a real estate attorney to make sure no one takes advantage of you, that is very common this day and age and a real estate attorney is your only protection.

Answer 10

Find a "Mortage Broker" after you read THIS book:

http://www.amazon.com/Thousands-Dollars-Your-Home-Mortgage/dp/0471223271

Answer 11

read tips on mortgages and more on real estate on this site