I never applied for a loan before other than an auto loan. I am a first time home buyer in my whole family. I make about $70k and my wife makes about $30k. We both have FICO scores over 700.
2006-12-15 09:05:40 · 13 answers · asked by thickandchunkypacepicante 1 in Business & Finance ➔ Personal Finance
I would think by talking to friends or other people you trust about their experiences. Then maybe going with their recommendation.
2006-12-15 09:09:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Know what the average rates are and make sure you are comparing them apples to apples. A mortgage broker may direct you to a lender where he gets the biggest commission so you have to know if the APR is in line. By shopping several banks on your own, you can hurt your credit score with the extra inquiries so there is a trade off there too. Best advice is to be educated regarding what rates are running, make sure there aren't points, hidden costs, etc and stick with a traditional mortgage. Adjustables, balloons, interest only, etc all seem to have pitfalls that a first time buyer doesn't consider, but they get sold to them as a lower payment.
2006-12-15 10:36:19 · answer #2 · answered by Scott C 2 · 0⤊ 0⤋
Apply with several places and see who gives you the best deal. (you can shop multiple lenders, getting a quote does not obligate you)
I even used one of the lower rates (by1/8%) to cut a better deal from my stock brokers mortgage dept.
Also, Yahoo finance has the daily average mortgage rate down about 1/2 way on the right side of the page.
2006-12-15 09:17:28 · answer #3 · answered by kate 7 · 0⤊ 0⤋
What you need to ask for is a Good Faith Estimate. This will give you an itemized look at what your being charged. The only things that you should see are the following:
Origination Point
Processing Fee
Anything else is Junk Fee's.
Bank vs Broker. It doesnt matter because I have seen scammer's in both fields. You must trust who you work with. If you want you can send me the GFE and I can circle out what is worth your money and what is not. Good luck and looks like you will be in a home in no time.
2006-12-15 09:19:27 · answer #4 · answered by Openthathouse.com 4 · 0⤊ 0⤋
I was on the same situation and this site helped me HTTP://HELP.MYLOANSRATES.NET
RE How do you know you are not getting ripped when applying for a mortgage for the first time?
I never applied for a loan before other than an auto loan. I am a first time home buyer in my whole family. I make about $70k and my wife makes about $30k. We both have FICO scores over 700.
2014-09-13 17:50:19 · answer #5 · answered by Trumann 1 · 0⤊ 0⤋
Find the best rates for people in your situation at: http://www.MYLOANSRATES.NET
RE:How do you know you are not getting ripped when applying for a mortgage for the first time?
2014-07-25 00:29:43 · answer #6 · answered by Anonymous · 1⤊ 0⤋
The only way to know for sure is to compare apples to apples. On the same day around they same time call THREE different lenders(Rates change ALL the time). Give them the necessary information(SSN and your scenario) and see what rates and payments they come up with. Afterwards choose your lender by asking yourself THREE questions..... Who has the lowest costs? Who offered the lowest PAR rate with no buydown? Who sounded the most knowledgeable and was the easiest to contact?
People must realize that you get what you pay for. If your loan officer isn't making any money on your deal, he will spend the least amount of time on your deal and try and push it through as quickly as possible so he can move on to the next more lucrative deal.
Your loan officer must have your best interests in mind and be available to you when necessary.
If you have any questions please feel free to write me @ mdesdunes@sicloans.com
2006-12-15 09:15:18 · answer #7 · answered by Michel D 2 · 1⤊ 0⤋
My recommendation is to stay away from brokers. Far, far away. Go directly to a bank. Your best bet is the bank where you keep your deposits now. Many banks give a discount on the interest rate if you do a direct withdrawal of the payment.
Good luck!
2006-12-15 09:10:42 · answer #8 · answered by emmejota2000 2 · 0⤊ 0⤋
Your name-brand banks and mortgage companies are all under government watch-dogs. Any are safe. Just call them in your area to see who have to best offers on interest rates.
2006-12-15 09:27:39 · answer #9 · answered by femcon 3 · 0⤊ 0⤋
Check all the competition and their rates you will have a good idea what is what. Be careful of agents who are selling the houses they are only after the commision.There should be a government agency that can give advice to you.
2006-12-15 09:18:38 · answer #10 · answered by burning brightly 7 · 0⤊ 0⤋