Any suggestion for a first time buyer mortgages - Page 2 - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

katharina · #11 (**permalink**) 10-14-2006, 12:57 AM

Quote:

Originally Posted by jakenathan

I am planning to buy my dream home next month. Well, if everything goes as planned then this would be my very first buying as far as such a big thing is concerned.

OH! I hadn't realized that you wrote this in August... did things go as planned for you, jakenathan?

bangfor · #12 (**permalink**) 10-20-2006, 07:00 PM

The best way out is to do a research on the Internet, you will get all the information you need, and one weekend will do it. Because you can get assistance from the government if you are a first-time homebuyer and that could amount to $5000 depending on your state if you are in the USA, which will cover the closing cost. There are so many things like seasons to buy and not to buy, how to choose an agent, the inspection process you have to know so that you are not buying a high maintenance house. The list is long.

WClifton · #13 (**permalink**) 04-19-2007, 05:32 PM

Congrats on your dream house purchase or soon to be purchase!

I hope you've got some extra time on your hands though as a mortgage is VERY serious,You would need at least a good half hour free to speak with somone either in person or on the phone because this sole purchase will stick with you for the rest of your life. its not really something to breeze through.

I am a Mortgage Banker and would be more than happy to assist you in a timely and professional mannor please feel free to contact me with any questions you may have

William Clifton

AllThingsPersonalFinance · #14 (**permalink**) 05-22-2008, 01:03 AM

Quote:

Originally Posted by jakenathan

Hi,
I am planning to buy my dream home next month. Well, if everything goes as planned then this would be my very first buying as far as such a big thing is concerned.
Well, I am gathering all the information regarding first time buyer deals on Internet.

Actually, I read that there are some formalities involved in it. I hope that it wouldn’t take much of my time, as I can’t afford to do that due to my busy schedule.
One of my friends suggested me about this forum. I hope to get all the relevant information related to First time buyer mortgages or first time homeowner loans from this forum.

I hope I’ll get some valuable suggestions and tips from this forum also.

Thanks

For a first time home purchase, choose a reputable lender. That is crucial. When I say "reputable lender," I'm thinking about a credit union, local bank, or bigger bank.

Mortgage brokers and you are at odds with your purchase. You want the lowest rate that you can get, right? Brokers want to give you the lowest rate that you'll accept. They are commission sales people just like carsalesmen and insurance salesmen. They make money on the rate that you accept above the minimum, also called a par rate.

Generally, an increase by the mortgage broker of a half point above par will give them a 1% commission on the sale of the loan (1% of $150,000 loan is $1500). That is essentially what you are doing - you are buying a mortgage. You are buying a house with a mortgage that you are also buying.

When you compare rates, make sure that you are comparing apples with apples. Lenders are required to give you a Good Faith Estimate of the terms of your loan within three days of your application. What they are not required to do is explain everything to you in terms that you can understand and disclose every little, last flipping detail about your loan. Actually, they are supposed to do this - BUT few will. They want you to take their deal, close the loan, and put a commission check in their pocket. Down the road when you find out that you have a loan that did not match the terms that you discussed and agreed on, your broker will be long gone.

Just be careful.

terry16844 · #15 (**permalink**) 08-18-2008, 04:57 AM

congrats on your new home purchase. its nice to here some good news for a change.

alex@borrow123.com · #16 (**permalink**) 09-03-2008, 07:21 PM

Quote:

Originally Posted by jakenathan

I hope I’ll get some valuable suggestions and tips from this forum also.

Thanks

Hi Jakenathan,

Hope I can help you out, even though you may be in the midst of this process already. There are a few things I would advise any first time home buyer.

1. Educate yourself on the basics

There is certain terminology that comes along with the mortgage process. You don't need to know all the ins and outs, but understand what a fixed rate versus an adjustable rate means, points, Good Faith Estimate, and an APR are. This will go a long way towards understanding the loan you have and what you're signing up for.

2. If it sounds too good to be true...

Unfortunately a lot of companies that cater towards low down payment, or shaky credit history borrowers are looking to hook in high interest payments. Or if they are low interest payments, they come at the expense of high closing costs. In order to get the best picture of a loan, you need to take into consideration the points you need to pay that "great interest rate", and closing costs - only then can you get an "apples to apples" comparison between two loans.

3. Bigger is better?

Not necessarily. As with any business, if you're spending lots of money on advertising, that usually means it's passed on in closing costs (see my note in #2 about closing costs).

4. Take your time

I know you said you don't have lots of time to go through this process, but it's one of the biggest financial commitments anyone goes through - make sure it's the best deal. It also does require some documentation of income, etc so be prepare for that. But as long as you prepare yourself well, the mortgage process can be a good one.

Good luck, and feel free to message me if you have any questions!

leonel80 · #17 (**permalink**) 10-08-2008, 01:49 AM

Congrats on your new home! I did pass through all this last month. Be prepared as very well have been said here to sign lots of paper and have copy of all your financial statements. Also you will need at least 20% down payment if you want a good rate. Good luck in your new home.

shulink · #18 (**permalink**) 10-16-2008, 07:42 PM

I suggest you to go direct to some bank to compare the rate they offer to you, not go to Mortgage company to get a loan, because you will be charged for the service fee,Finally, you will get same rate as you go to bank.

Shell · #19 (**permalink**) 10-18-2008, 04:21 AM

If you are planning to purchase your dream home, you have to do a lot of due deligence and get as much info before you dive into it.
Mortgage rates predictions and to calculate a mortgage is one of them. See how the markets and mortgage rates are going and know much how mortgage you can afford. By calculating how you can afford you may have a ballpark figure as to how far you can go. I hope this may somehow help you to start.

Shell