I am looking to buy my first house in the Columbus Ohio area and I would like to know how I should proceed.?

Question

What questions should I ask when talking to banks? What would be the ideal mortgage? I have good credit and so does my wife so what should we expect? What are the various ways that banks/real estate agents will try to take advantage of us? Anything would be useful! Thanks

Answer 1

When you are buying a home the Realtor does everything for free. Its only when you are selling is there a 6-7 percent commission charged. Contact a Realtor they will go through all the step with you and since they do this on a daily basis they can put you in contact with a loan officer, home inspector, appraiser, attorney, title company, survey company and homeowners insurance company and this will make your process easier.

I do not recommend doing a for sale by owner because it might be their first time selling a home and they are usually unprepared and do not have the proper forms to fill out when selling their home.

Answer 2

Anyone who charges you a higher rate for less than a 20% down payment isn't giving you the best available financing.

Start by asking friends, relatives, and co-workers for a referral to an experienced mortgage banker. A mortgage bank will be less expensive and have a wider selection of loan programs to choose from. In addition, since the bank wants your deposit relationships as well they are going to more concerned about the quality of service you receive than about how much they are making in commission on this one transacton. Choose a loan officer with the same care and concern ;with which you'd choose a physician or your child's care provider. Your are looking to establish what should be a lifelong financial relationship here with an expert you can trust.

Get yourselves pre-approved so that you know exactly how much you can afford and what your estimated payment would be. That way you won't go out and fall in love with a home you can't qualify to buy or one upon which the payment would make you uncomfortable.

The right loan officer will spend a great deal of time exploring your needs and housing goals and then educating you about all of your options so that you may make informed decisions and choose the home loan that is just right for you.

Remember, rate is only one component of choosing the right mortgage loan. Don't let some snake oil salesman hook you on a program that sounds to good to be true, it probably is.

An experienced professional Realtor is worth their weight in gold. The seller has an advocate in the process, their listing agent. So should you. It costs you nothing as the Realtor's fees are paid by the seller and having someone to limit your viewings to only those homes which are suitable and to negotiate on your behalf takes a lot of the potential stress out of your search and can shorten it greatly.

Happy hunting, good luck and feel free to email me if you'd like me to email you some first time buyer info that may explain a lot of things and demystify the industry jargon.

Answer 3

First look at what is available in your price range and you don't have to have a Realtor. That is an additional 6% that goes to the agency. Shop around for Sale by Owner. You can do your own research regarding mortgage companies. I suggest a local Bank that also does home loans. You will need 20% down to qualify for the best interest rates. 10% will get you in a home, but at a higher rate. Good luck.