I am looking to buy my first property, but I am unclear exactly what is needed? Do you I need to be qualified first and then look at property to buy or can I go look and then get qualified? Also, does anyone have any recommendations for online mortage services?
2006-12-18 03:23:54 · 5 answers · asked by public-opinion08 2 in Business & Finance ➔ Renting & Real Estate
It would be best to get qualified first. What you will need is your 1 month pay stups, 2004 and 2005 W2's, not your filed taxes, just the W2's, 2 year employment history.
Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - judgements will have to be paid (most ppl do not know that) and collections can remain open, depending on underwriting and the cause of the collections
Talk with a mortgage broker, one that underwrites for many companies. 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). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Find a broker what will go over ALL your options with you. (ok)
ALSO -
When you Decide to buy, 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 realtor, and the seller has to pay the realtor 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?? You may find a For Sale By Owner, they are sometimes more willing to help you with closing cost(s) associated with your loan, since there is no realtor fees.
2006-12-18 06:35:24 · answer #1 · answered by W. E 5 · 0⤊ 0⤋
It may be better to go and get pre-qualified so that you know the amount you are going to be able to borrow. That way you will not find the perfect home and then be told you can borrow enough money to get it. You should use a local mortgage company. I have not heard good things about those on line companies. They charge lots of extra fees and they are more expensive than local companies. Plus, especially since this is your first mortgage, you will want to be able to go in and sit down and talk to someone who can help you through the process and make sure you understand everything. Talk to people you know who have been through the process or to local realtors and ask them to refer you to a mortgage company, they will know who you can trust to do a good job. You can also check with the Better Business Bureau and see which companies in your area have a positive record with them. Good Luck!!
2006-12-18 03:52:55 · answer #2 · answered by Tallulah 4 · 0⤊ 0⤋
You don't have to get qualified or pre-approved, but it may help you while your shopping. Qualified means a bank takes a brief look at what you make and what you owe and gives you a ballpark of what you can afford to buy.
Approved means they take all your income, and debts into consideration, they run your credit and give you a max that they will lend you on a house... if the house appraises where it should.
Getting qualified or approved helps you know what to look for... so you don't waste you time, and everybody else's time trying to write a contract on a big house that the bank will not loan you money on.
It seems overwhelming at first, but it really isn't... people are buying and selling for the first time everyday. Don't be affraid to ask questions at every step.
2006-12-18 03:33:06 · answer #3 · answered by John Stamos 3 · 0⤊ 0⤋
i just bought a home through this online mortgage service. small office who paid attention and walked me through everything.
www.scottlushing.com
2006-12-18 08:32:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I wrote several articles on this subject...hope these help.
2006-12-18 04:37:51 · answer #5 · answered by loanman46 2 · 0⤊ 0⤋