I'm going to buy a house, I could use some help!

mikeyj23 · 01-29-2010, 05:16 AM

1. Be careful not to strictly go with a percentage rate; be sure to look at the "total package" of the loan. What type of loan is it (FHA, conventional), what are the points paid on the loan, what's the origination fee, closing costs, etc. We bought in August and got a 5% rate, and I chose to go through my bank Wells Fargo rather than going through a broker. It ended up being much easier and straightforward that way, and we wouldn't have gotten a better rate anywhere else.

2. I'd be extremely wary of a loan salesman who makes you feel committed once he gives you a GFE. I made the mistake of talking to someone just like that at a big mortgage company (Quicken Loans), and he was extremely rude after I chose not to go with him, even though he'd never actually sent me a GFE. He personally insulted me for going with someone else, since he'd given me such "personal service," "confidence," etc. Load of bull, in my opinion. Avoid Quicken like the plague. They even make you pay $500 upfront to "start doing business." With the sheer number of mortgage companies out there, you can afford to avoid them.

3. When shopping, start with what's closest to you. In my case, now that I'm a teacher the best rates can be found at an Educational Credit Union. If you're involved in a profession or hobby that is in any way related to the banking industry, use that to your advantage. Check with your bank and see what their rates are. After all that, check with some online mortgage brokers and see what they can dig up for you. Compare GFEs side by side and check out every item, including the total $$ paid over the loan. Small numbers in a mortgage can end up being big numbers when all is said and done.

4. Unfortunately, you can't expect to take off a percentage from a home's price. Try to find out if there are any other offers on the house. When we bought, our first offer was the listing price, and ended up offering higher since we had seller pay closing costs. Your realtor will be the best advice-giver for your first offer.

As others have said, be aware of the total monthly payment rather than just the mortgage portion. The mortgage might only be 900/month, but you'll end up paying closer to 1400 or 1500/month with everything included. Homeowner's Insurance, HOA dues, and taxes can eat up your money.

Best of luck! It's a daunting process, but if you do your due diligence and make sure you understand every step of the process, you'll feel confident in your decision at the end.

01-29-2010, 05:16 AM	#11
mikeyj23 Feeling at Home Join Date: Oct 2008 First Name: Michael Location: Texas Posts: 635 Trading: (10)	Re: I'm going to buy a house, I could use some help! 1. Be careful not to strictly go with a percentage rate; be sure to look at the "total package" of the loan. What type of loan is it (FHA, conventional), what are the points paid on the loan, what's the origination fee, closing costs, etc. We bought in August and got a 5% rate, and I chose to go through my bank Wells Fargo rather than going through a broker. It ended up being much easier and straightforward that way, and we wouldn't have gotten a better rate anywhere else. 2. I'd be extremely wary of a loan salesman who makes you feel committed once he gives you a GFE. I made the mistake of talking to someone just like that at a big mortgage company (Quicken Loans), and he was extremely rude after I chose not to go with him, even though he'd never actually sent me a GFE. He personally insulted me for going with someone else, since he'd given me such "personal service," "confidence," etc. Load of bull, in my opinion. Avoid Quicken like the plague. They even make you pay $500 upfront to "start doing business." With the sheer number of mortgage companies out there, you can afford to avoid them. 3. When shopping, start with what's closest to you. In my case, now that I'm a teacher the best rates can be found at an Educational Credit Union. If you're involved in a profession or hobby that is in any way related to the banking industry, use that to your advantage. Check with your bank and see what their rates are. After all that, check with some online mortgage brokers and see what they can dig up for you. Compare GFEs side by side and check out every item, including the total $$ paid over the loan. Small numbers in a mortgage can end up being big numbers when all is said and done. 4. Unfortunately, you can't expect to take off a percentage from a home's price. Try to find out if there are any other offers on the house. When we bought, our first offer was the listing price, and ended up offering higher since we had seller pay closing costs. Your realtor will be the best advice-giver for your first offer. As others have said, be aware of the total monthly payment rather than just the mortgage portion. The mortgage might only be 900/month, but you'll end up paying closer to 1400 or 1500/month with everything included. Homeowner's Insurance, HOA dues, and taxes can eat up your money. Best of luck! It's a daunting process, but if you do your due diligence and make sure you understand every step of the process, you'll feel confident in your decision at the end.