I have heard that also about credit unions. I would agree with the market the way it is that now would be the perfect time to maybe get your financial stuff together. Talk to some lenders there are alot of options out there that I was never even aware of when we were looking to buy.

First off, make sure your credit is in order *before* you begin applying. Also, each time you apply it will show up on your credit report and that can hurt you, so do your research first, and then go from there.

Second, work with someone local that you can trust. Find someone you are comfortable with and has been in the industry for some time. Credit unions can be very, very good but check them out anyways.

Lastly, research the company as much as possible. You don't want your loan sold off if you can avoid it. Bigger companies like Countrywide and Wells Fargo may not give you the best possible service, but their loans are solid.

Finally, stay far far far away from anything variable rate. Interest-only loans are fine if they are fixed interest. Variable rate mortgages are more for short-term purchases where the rate can be locked for a period of time. This includes option-style mortgages as well.

Just a caveat to what Mynion said, if you are applying, do it all in one day, the reporting agency will count it as one inquiry then instead of 7 if you went to one place a day for 7 days.

The ARM's have really been getting beat up a lot lately in the media and everyones afraid if them. The problem isn't the product as much as it is L.O.'s not knowing the product well enough and not explaining it to their clients. If you are informed and understand there are a ton of great interest-only and/or adjustable loans that may be a good option, however, too many times someone is too worried about getting a commision or are ill-informed themselves and thats how people can pay a mortgage for three years and owe more on the loan than they did when they bought the house or worse, lose the house altogether. ARM's aren't evil. They aren't for everyone and they are dangerous if you don't know what your getting into.

Kris, check out my website Home play with the calculators and leave contact info. I work with many first time home buyers and can guarantee unbeatable service. If you like e-mail me directly t.ipp@hotmail.com I look forward to working with you.

Did you ever get help with this? I would be more than happy to assist: rates just went down and this sounds like an easy transaction. Hvae oyu made an offer yet? I can issue a pre-approval and lona committment within 24 hours if you would like to complete a short application on my websitewww.preferredrealtypartners.com, or feel free to give me a call:866-599-8480. Julie at US Loans/Julie at Preferred Realty ( real estate and mortgage). Best of luck!