You should talk to 2-3 different banks/lenders. See which you are more comfortable with. Many real estate agents can recommend a couple lenders that have done a great job. You should also interview 2-3 real estate agents to work as your buyer agent. You want the lender to give you a pre-approval as getting pre-qualified doesn't mean much.

Hi Gracie,

We are a SMALL mortgage company, based out of Lodi...so we are RIGHT HERE in your area! First of all, there are MANY more questions I would ask you...but to TRY and answer your question as directly as I can, here is what I can offer you...1. You need to truly decide WHERE you want to purchase a home at...If you must buy in Madison,Monona etc...it is going to be difficult with your income level of purchasing anything over the price of $125,000....However, here are a couple of options that you might want to consider.

FHA Loan
125,000 purchase price
Loan amount of 120,625
Rate ESTIMATE ONLY 5.5%
Principle & Interest portion of the payment $685.00
Approx Insurance $40.00
Approx Taxes $250.00
Approx Private Mortgage Insurance $60.00
Total payment would be $1,035.00

A BETTER OPTION: A USDA RURAL HOUSING LOAN **However, this requires income & property approval. What this means, is that you cannot purchase in Madison or Monona...but definitely in the smaller communities surrounding Madision.

**This might actually be the way you have to go ANYWAY, because you can get more value out of a home and a better deal! As well as your tax situation MIGHT be better as well!

Two EXCELLENT REALTORS have left you comments, and they would be MUCH better to speak with than I on this matter! Sue Stark with 1st Weber, and Mike Adler with Restaino! Both are experienced and work for GREAT companies.

THE USDA loan is AWESOME...and here is why.

Same loan
$125,000
Loan Amount $125,000+ the guaranty fee....YES< that means 0 down!!! You need to retain money if you can for a "house" fund...to cover things like if the central air goes bad, furnace, roof, appliances..all that good HOMEOWNER stuff!
THERE IS NO PMI on this product!
Rate is 5.25%
Pinciple & Interest 690.25
Taxes $250.00
Insurance $40.00

Total Payment would be $995 ....Yes, this is less and you are borrowing more money!

It is truly impossible to give out accurate rates, until you make an offer and have it accepted, because there are many things involved in the qoute..like length of time until you close on the home!

Now, I would also like to address some of the comments that have already been left for you...if you dont mind..

Sue from 1st Weber - , VERY good job...Straight to the point! That is what you want today!~ I wish I worked with her on a regular basis..

Gene - Not sure if you answered her question, and he is an out of state lender...I am confident the gentlemen is good at his job, and all the information is there for you...but Gracie, you have to decide if you want to work with a lender locally or not.

Linda W - Profile shows she is an agent...but response and contact information shows that she is a lender! VERY GOOD things to say..and I agree with her completely, but relationships play a key part here in Wisconsin...and I have been in the industry for 20 years+ and in Wisconsin since 2000...working mostly in Dane County...Again, local person vs distance...however, she is NOT that far, and she works for a good company!

Martin from Georgia - Is correct, no matter WHO you choose, a BROKER is the way to go!!

Mike Adler - Very good Realtor, for a very good Company! I would listen to anything he has to say!

Here is a link that you should consider going to: http://www.federalhousingtaxcredit.com for info on the 8k 1st time home buyer credit.

Another good link: http://www.rurdev.usad.gov for more information about rural housing loans!

I hope I have not confused you as my only intention is to help!

Thanks so much!

Darin
One Source Mortgage, LLC
109 1st St
Lodi, Wisconsin 53555
608-592-2227
Darin@osmwi.com

You will probably be fine. Your Realtor can try to negotiate your closings costs into an offer. I have several clients in less desirable circumstances right now. Call me on Monday and I can pair you up with a lender and get you started in as little as a few days. The market is really picking up with many first time homebuyers doing the exact thing you are looking at doing and inventories are moving quicker than in the past.

Sue Stark, ABR
First Weber Group
(608) 354-8107
starks@firstweber.com

Gracie:
Congrats on your FICO score! You should be proud of that accomplishment. You should also be proud of the savings you have accumulated so far and the low amount you owe on student loans.
My suggestion to you is this ... talk to a professional mortgage lender and get pre-qualified soon. It is truly the very best place to start when considering a home purchase. To assist you with what most lenders will need when you speak with them, please go to my website at http://www.genemundt.com. There is a page there that contains that very information for you. Download it for your use. Also on that website you will find a flyer regarding the First-Time Home Buyer's Tax Credit. It contains valuable infomation regarding the benefits you would enjoy if you purchase a home before the end of November, 2009.
I would be happy to assist you with a complete credit report and pre-qualification. I am fully capable and licensed to assist you within Wisconsin and multiple states across the country. If I can be of assistance to you, please contact me here at trulia.com, my website, or my email (gene@chicagobancorp.com). I will look forward to speaking and working with you!
Gene Mundt, Profesional Mortgage Banker http://www.genemundtmortgageblog.com
Chicago Bancorp

Hello Gracie,

What you should expect from a good loan officer is a lot of questions to determine your goals, needs, and objectives. They should ask you what your budget is for a house payment - principle, interest, taxes and insurance. Then, based on that number, the type of loan and interest rate, you can determine how much house you can afford. The loan officer will need personal information such as your date of birth and social security number, and information about your income and assets to complete the pre-approval. I usually spend a lot of time with my first time home buyer's covering timelines, next steps, expectations - so they are comfortable through the entire process and there are no surprises.

The most common type of loan being written today is a 30 year, fixed rate, FHA home financing loan. These loans require a 620 minimum score and 3.5% down. So, your $5500 in savings just might do the trick. Or, the down payment can come from a gift from a family member or a relative. Your 710 credit score is great - good job!

Good luck in your home search. Please let me know if I can be of assistance. I'm in Appleton, and licensed to write loans anywhere in Wisconsin. I've already done a loan for a couple moving here from Europe, so I am very capable of doing loans long distance. We have a secure, online application at http://www.patriotms.com if you are interested. Pre-approvals are no cost and no obligation to you and should only take a day or less to complete. It's important that when you are shopping around for a mortgage that you compare not only interest rate, but closing costs as well.

Take care.

Linda Williamson
Loan Officer
Patriot Mortgage Services, Inc.

Based on your information, your numbers are fine. A mortgage broker will get a complete picture of your financial situation.

Gracie: My answer to you would be to call a lender to get pre-qualified. Many lenders have different programs for first time homebuyers, and with the lending guidelines changing, you need to contact a lender to obtain your information. A Realtor can prequalify you, but it is not the same as being prequalified by the lender. Call me if you would like a few names of lenders in the Madison area.
Mike Adler
Restaino and Associates
mikeadler@tds.net
235-5115

You should go to a bank and ask to talk to someone in the mortgage department. Tell them you would like to get preapproved for a mortgage,it does not cost anything, they will be able to tell you what level of morgage you would qualify for and then you would be able to see what price home to start looking for.
Good luck
Mike Rayno