Congratulations, you are thinking about becoming a homeowner. The first step is to talk to a local mortgage professional to provide you information about the loan programs and what loan will work for your finances. You can talk to a real estate agent for recommendations of reputable loan officers in your area. In addition, you may want to get referrals from your friends and family who have had a good experience with a lender. Your local bank may have loan programs you may want to consider. Take the time to interview different lenders to find a good loan and great service. Best wishes in your home search!
Prudential California Realty
ask ur lender about "buying points". this is where they can offer u to PURCHASE interest points like if ur credit wasnt getting u a great rate, u could buy a point n go from a 7% intrest to a 6% intrest or u can buy half a point. DO THE MATH! make sure its worth it.....they told me...if it costs more to buy the point than ur savings, or it doesnt make a differance till 15 yrs from now, then u may not want to bother. but i think if ur intrest rate is outrageous...buy all u can (they tried to talk me out of it, thats $ outta their pocket, thats how the bank makes the profit, ur intrest!)but how the heck can it hurt? no way! would u say yes to a 12% when u know their giving a 10% freely? that makes no sense. they make the price whatever they want and they tell u how many points u can buy. if ur credit gets u a 4% THE JERKS WONT LET U BUY ANY POINTS, they wont allow u to have it so low they dont make anything. the points could b say $400+ now up to w/e. i think someone i know a few yrs ago paid $1200 per point. so CALL AROUND about that first as well when u ask about the credit score cutoff. THEY WILL NOT tell u about this, like i said b4 u must ask!
ugh there r other tips, i cant think right now....
also, u can get info about gov. grants from the courthouse, go down n ask where i didnt do it. there is an income cutoff. it around low 20's? (for some programs)but chk cause they go by how many in ur home n who works. its worth a shot if u may qualify. u can get like 5k that u dont pay back as long as u stay in the home ur buying for 5 yrs.
if ur BUILDING a new home they offer 15k! there r many differant ones, so chk it out.
oh...n while i think of it, chk ur county courthouse, ask about the monthly realestate AUCTIONS they have like every second or first or w/e tuesday each month...they should have a list of the properties that r up for auction (at the courthouse usually) n when! u may get a great deal, they always say the list isnt up to date, but get it n GO ANYWAY, get a feel for it n learn how it works, u have to have a percentage of the money when u win the bid, n only so much time to get ur loan, so learn what u can, u gotta act fast. but if NO BODY GOES guess what, its like ebay, ur gonna get that home for dirt cheap!!
hopefully u know about the new 8k tax credit. if u buy a home before the end of the yr, or before december i dont remember, u get an EXTRA 8k back with ur normal tax return amout. thanx obama! b smart, turn right around, dump ALL of ur return into the principal of ur loan n REFINANCE BABY, lower that payment!
YOU HAVE TO ASK ABOUT THE "MORTGAGE CREDIT CERTIFICATE"
well good luck, sorry i can't finish :P if u ever go against me on a house, may God help u! lol
heres a couple clues...
1 leave the realtor alone, u dont need them unless ur not capeable of scouting out what u want on your own. (the internet if ur smart like me can do amazing things. u save so much time effort n gas. n annoying realtors tryin to earn that comission, make that sale) once u find a home u actually want to walk through, then u must call on a realtor, any will do unless its a hud home..in that case ask when u call them if they are hud authorized.
2 trulia is a great site, congrats. DONT BE AGRAID TO GOOGLE THE ADDRESS of ur potential find! u'd b amazed at what u find ex: one site may have pictures of the inside, where as another will not. i learned the hard way to many times: if ur really interested at the home, u did all ur research (u went to the county's tax assessors website n found the apraisal info on the home, then did ur drive by peek in the windows) IF THEN ur STILL interested, call the realtor MAKE SURE THE HOME HASNT IN FACT SOLD n the dummy who listed it isnt just lazy n has yet to delete the listing u'd b amazed at how much this happens...and set up a time to c the home!
3 wait it out!! don't jump the gun unless u know its an incerdible deal u cant pass up (always calculate the price per sqft, after some time u'll learn whats a good value for ur price range or how nice of a home u want) word to the wise: everything right now is listed for AT LEAST a month! 8 outta 10 times after a month they drop the pice at least 5k some times up to 10k! esp in so-so neighborhoods, if its a lil bit outta town it soo goin down 10k.
4 with all that in mind, lenders have tightened up. they screwed up, now its harder to get approved BY MOST! but things i have learned to keep in mind...
stay clear of wells fargo, they r one of the strictest as far as getting approved.
countrywide (now bank of america) super easy! they do not have a min credit score to approve u. give a great first impression, it IS all up to them, keep in mind its a judgement call as well as the financial facts u show them. have ur ducks in a row.
*u will need a whole months paystubs.(current)
*ur most recent months bank records, so start making ur deposits look good ;)
*ur lat 2 yrs income tax records, w-2's (if u dont have one of those, bring what u have before that AND an additional yr)
*know what u want, how much. dont b wishy washy like u dont have a clue. ur lender can walk all over u if given a chance. ASK ALL THE QUESTIONS if u don't, THEY DON'T HAVE TO TELL U. thats how all these people got into all this crap they couldnt afford. **esp 'mortgage lenders', differant from the bank, mortgage lenders dont abide by the same rules. they dont disclose nuthin unless u ask, but if ur smart n know all the right questions this may work to ur advantage cause they in turn offer THE LOWEST RATES and r THE EASIEST to get financed by. so its cause n effect. i play safe n go with a bank thats more forgiving.
(wells fargo is around a 580, its gone up recently, u can call n ask what the mortgage credit cutoff is for approval they'll tell u) that means ur credit score has to b at least a 580 to b approved
by God get ur PRE-APPROVAL done before ur REALLY SERIOUSLY LOOKING. THE NEXT JOE BLOW MAY HAVE HIS N U LOOSE UR DEAL OF THE YEAR. ur pre-approval is only good (seller acceptable,supposedly)for like a month, n u dont wanna hurt ur credit by doing it umpteen times, so b smart. they say it doesnt hurt
(if theres a few loan attempts within 10 days of each other), but thats balloni-? lol n who the hell does that? it may take u months n months to find ur home.
get ur credit report before u start all this @ annualcreditreport.com (u get one a yr, so b sure ur ready...if u know there is sumthing u need to pay off first, dont waste it, pay it off, wait as long as u can then get the report) *another way is to sign up for "wellsfargo's identity theft" blah blah blah program. u can find it thro the website or go to the bank n ask about it, they have a number. u call, "sign up" in like 3-4 wks they send u a FREE CREDIT REPORT, then u can cancel as soon as u get it n u never pay them anything n u kept ur report! dont worry theres a letter u sign in the meantime to activate it, so ur 30 days to cancel dont start till after u get ur report. but dont go tellin everybody! they may catch on. SO... u CAN get ur annual from the government, see what u need to fix, THEN when ur done, n ready to find ur lender, get the one in the mail n make sure the people u paid off reported it BEFORE u go to get the loan. u could b cheating urself outta a better intrest rate if u dont!
when u find that house ur sure on MOVE FAST n get approved! n GUARD UR HOME lol seriously, keep an eye on who's looking, thats when u get friendly with ur realtor(even tho ther not supposed to tell u anything bout ur competition ;) and if u know there r 4 other couples looking..u may have to go higher to out bid them
Ask friends/family/co-workers for a referral to a loan officer they used and were happy with on their loan.
You must know some recent home buyers.
Quite simply.... you just need to apply.
Good luck. And please feel free to contact me for follow up questions
Congratulations on your decision to venture into the "home buying" experience. You are beginning in the proper way by arranging for financing prior to doing anything else. This will help you use your time efficiently , target on an achievable price range, and put you in a position to act quickly on a home of your choice when you identify it.
Our recommendation is to meet with several loan specialists to get pre-qualified for funding. Be sure to request a "Good Faith Estimate" from each. this is simply written documentation of the rates and programs quoted to you by the agent.
When meeting with financial people make sure you understand them. They can tend to talk quickly, use terms the normal person is not familiar with, an assume you know as much as they do about the borrowing process. S-L-O-W them down, ask questions, and be sure to understand their message.
Buying your first home is an exciting time, one that a good agent can also make enjoyable.
The Eckler Team
The first step will be to seek out a lender and let them help with a pre-qual meeting, at which point they can tell you how much house you can afford. This is vital to house hunting, so that you know what to look for, rather than looking at homes that are priced too high (or too low).
Do yourself a favor and consult a reputable mortgage professional.