Author Topic: Firs time home-buyer, how to get best rate for mortgage?  (Read 2123 times)

jacksonn

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Firs time home-buyer, how to get best rate for mortgage?
« on: March 12, 2018, 03:41:51 PM »
Hello all,

Where would you recommend a first time home buyer to get a mortgage from? I have been wondering if Credit Unions would be better since they are not "for profit". Also, are there first time credits/tax benefits stuff from the gov we should know?

In general, what are some good online resources for first time home-buyers FAQs? For now we are most concerned about the money side. Random googling just shows random blogs that promotes their stuff...

Thanks!

Phoenix_Fire

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Re: Firs time home-buyer, how to get best rate for mortgage?
« Reply #1 on: March 12, 2018, 06:25:54 PM »
You should google first time home buyer programs in your city/county/state.  Unless you make too much money to qualify you can probably find a program that will help you out with a down payment. I had an incredible program in 2009 that gave me 22% down. This was during the housing crisis, so good luck finding anything close to that.

After you find a program, you might need to work with certain lenders.  In general though, you should check with whatever bank you use, a credit union, possibly online banks, and even SoFi.  I believe SoFi offers 10% down loans with no PMI and no closing costs, but you should verify. 

Keep in mind that if you get all the loan quotes within something like a 30 day span it only counts as one credit inquiry. 

Find a realtor.  If they want you to sign an exclusive buyers contract with them, find a different one. Personally, I would not use a realtor that was a friend, family, or acquaintance of anyone I knew. The reason for that is if you have problems with them it becomes awkward to fire them if necessary.  When I bought my house, I searched for realtors, interviewed one (he drove to my work) told me there were no contracts with him, and if I thought he wasn’t doing a good job I should move on.  I worked with him and he was incredible.

If you’re serious about buying you should be looking at Zillow everyday and try getting a feel for what things are actually selling for.  Save homes you like, then keep paying attention to them when they go off market, and finally switch back to sold status.  Did they sell for more/less than list? Did you immediately recognize it was underpriced and that was backed up by it selling within 7 days or less? 

I still look at Zillow everyday, and have seen 2 houses that I really liked and would have considered buying that I knew were great prices.  They sold immediately. One was then immediately put up for rent at double the expected mortgage with 20% down and was rented in 6 weeks.

It can be scary, but do the research and you will gain confidence.  Other than another home, this will be the largest purchase you ever make, so put in the time to get familiar with things.

lil_miss_frugal

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Re: Firs time home-buyer, how to get best rate for mortgage?
« Reply #2 on: March 13, 2018, 09:42:21 AM »
I'm currently in the same home buying process right now and have been diving into information as this is our first home purchase. Check out Quicken Loans as they have many articles about the entire process and how to find the best mortgage lender.

NoStacheOhio

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Re: Firs time home-buyer, how to get best rate for mortgage?
« Reply #3 on: March 13, 2018, 09:44:14 AM »
Shopping around is generally worth your time.

Also, check and see if anyone offers any special deals through your employer. That's how we got our mortgage.

shelbyautumn

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Re: Firs time home-buyer, how to get best rate for mortgage?
« Reply #4 on: March 13, 2018, 10:20:51 AM »
DEFINITELY follow the advice that @Phoenix_Fire gave. When my husband and I bought our first home in 2014 there was a program in our county that gave 4% down. Search for credits in your city, county, and state. 4% is the most I've heard of recently, but it's free money!

Do you have family or friends in the area that have used a certain mortgage lender? For our current home, I used a lender my mom had bought two homes with and he gave us a rate that was slightly below what we would have gotten elsewhere. It's not what you know - it's WHO you know!

TheWifeHalf

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Re: Firs time home-buyer, how to get best rate for mortgage?
« Reply #5 on: March 13, 2018, 11:06:35 AM »
When my son bought his house he was going to finance 100,000. The gal at the bank told him if he financed 99,000 his mortgage interest would be lower. So that's what he did!

Saving in Austin

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Re: Firs time home-buyer, how to get best rate for mortgage?
« Reply #6 on: March 13, 2018, 11:12:40 AM »
We just looked for the lowest interest rate possible online.

We ended up with 2.625% on a 15 year fixed rate mortgage.

Try these sites:

https://www.bankrate.com/mortgage.aspx

https://www.erate.com/

https://mortgagerates.monitorbankrates.com/

There are others. Search around.