Home Buying in Astoria>Question Details

Dg8375, Home Buyer in Astoria, Queens, NY

Mortgage Rates are going up. As 1st time home buyers we are just starting to do research..

Asked by Dg8375, Astoria, Queens, NY Thu May 28, 2009

Can anyone recommend best way to do reserach to find best mortgage rate? What do we need to ask potential lenders? Is it impossible to get under 5% now? Last week Astoria Federal had rates at 4.875%, now at 5.625% . Should we pay a mortgage broker to find best rate? Is it worth the $ and how much should that cost? Should we be cautious about going with lenders that are not big bank names like Chase, HSBC, Citibank, etc..

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Hi Dg, Going through a broker or a banker should not cost you more. The broker gets paid from the bank he gives the loan to. The bank will pay him a certain % fee for getting them a certain rate. If he gets them a lower rate they will pay him less etc.etc. You should only pay points to bring down the rate not to pay the broker. Rates go higher at this time of year because there is more demand. Especially if you want to qualify for $8000. credit as 1st time home buyer- you need to close by Dec 1st.. You may still be able to get 5% Chase is good just had a customer lock in at 4.875. Wells fargo I deal with Joe Purschke-516-383-5163.
Happy house hunting.. Call me when you're ready to look. Terry K 718-614-3167 cell I do all of Queens & Nassau email- therese.korahais@elliman.com
0 votes Thank Flag Link Thu May 28, 2009
Good mortgage brokers are often worth the few extra dollars, they will find the best package for you. I can recommend some really good ones if you need on; feel free to call or e-mail.

Anna
917-576-5376
abrocco@laffey.com
0 votes Thank Flag Link Thu May 28, 2009
Prices will continue to fall:
http://www.bloomberg.com/apps/news?pid=20601103&sid=aE_j…

Everyone is lying to get you take someone else's real estate loss.

Are you going to buy now?
0 votes Thank Flag Link Thu May 28, 2009
Dg8375:
First of all, congratulations on deciding to buy a home! Currently there are many great reasons to be entering the market your first time. Interest rates remain low, housing supply for choice is great, sellers are motivated, and the First-Time Home Buyer's Tax Credit are all fantastic reasons to start your search now.
FHA loans currently present a great option for buyers too, as they require a lower down payment (3.5%) and are more forgiving on credit scores.
My suggestion to home buyers (especially first-time buyers) is to find a qualified, professional lender to talk to regarding your upcoming home search and purchase immediately. Tell them of your financial goals, short term and for the future. If you are not associated with a lender, ask around. Gain referrals from those that have been through the process or those that you trust from within the real estate industry (Attorneys, Realtors, Insurance Agents, Home Inspectors, etc). Focusing on the lowest advertised rate doesn't give you the entire picture sometimes. You want to find a lender that will provide knowledgeable professional service, reliable and trustworthy guidance from pre-qualification to post-closing, and a proven track record of getting a loan through the closing process and transaction, besides the more obvious good rates and closing costs. A unbelievably good rate quote does nothing for you if the lender does not ultimately have the ability to successfully complete your transaction. I'd also ask if your place of employment has a credit union? Does that credit union do home mortgages? If so, that could be a great option for you to investigate. Also, there is nothing wrong with working with a smaller institution, as they can offer great service and quotes. Again, gathering referrals and choosing accordingly is your best option for great service and knowledgeable expertise. Size is not always the answer.
You are quite right in your assessment that rates, at least temporarily, are on the rise and volatile. Rates are tied to the markets and they have been roller-coasting a bit as of late. Please remember though, your rate cannot be locked in until you actually contract a home, so time may be on your side as far as rates go. By starting your pre-qualification process now, you allow yourself some flexibility (time and rate) as your lender and you will be prepared to lock in for an advantageous rate more quickly when it arises.
Please note .... to qualify for the First-time Home Buyer's Tax Credit provided through the stimulus package ... you must CLOSE on your loan by December 1, 2009. By starting the process now, you should have plenty of time to find the home you are wishing for within the stated timeline and gain from this great tax benefit.
Good Luck ... and write if you need further assistance ...

Gene Mundt, Professional Mortgage Banker
Web Reference: http://www.genemundt.com
0 votes Thank Flag Link Thu May 28, 2009
Hi Home Buyer,

One thing right off the top you want to avoid is focusing all your attention on what your payment and interest rate will be. By doing so you risk choosing the wrong financing. The questions you want to ask are:

1. When will I pay this loan off?
2. What will this loan cost me?
3. Does the bank offer a Daily Amortized Unpaid Balance Loan? (AKA Daily Average Unpaid Balance)
4. Make sure that your lender applies each payment immediately to get the interest savings, and does NOT wait for the second half of the month.
5. Identify all fees.

A fantastic book that you can pickup online is. It's Your Money! Tools, tips & tricks to borrow smarter and pay it off quicker by George J. Boelcke, F.C.I. You can only find the book on his website at http://www.yourmoneybook.com. It's $14.95, and there is no future obligations to buy. Good luck!

Matt
0 votes Thank Flag Link Thu May 28, 2009
Hello Dg8375,
You are smart to ask these questions and do the research on mortage options before you begin shopping for a home. Yes, it would be very nice to purchase a home with cash as Goat suggests. But, this is just not a reality for most Americans. You could rent for the next 20 years, continue to squirrel away money, and still never realize the dream of homeownership. My advice to you would be to contact at least 3 different sources for mortgage info.
1. A large bank, like the ones that you mentioned.
2. A local federal credit union.
3. A large national mortgage broker.

Get some quotes and rates from each of these sources and compare shop. Depending on your credit, income and downpayment, you are still likely to get a great program and a great rate. Continue to monitor the rates. They have proven to be unstable and you never know what might happen. Also, keep in mind that you have to be in contract on a home purchase in order to lock in an interest rate. Obviously you have some more research to do and questions that need answers before you commit to a contract. But, once you have some of these questions answered, you may want to speak to a local Realtor regarding what's available to you in your comfort zone/price range. Goat is going to suggest that you only look at for sale by owners and that real estate agents are not to be trusted. I think that a good buyer's agent will really save you time and money in the long run. Continue to weigh your options. I hope this info helps. Best of luck to you!
0 votes Thank Flag Link Thu May 28, 2009
When you go directly to a bank, you must fit into their profile. If you use a mortgage broker, they can shop the lenders for you.

Please be very careful with the mortgage brokers regarding what you are being charged for.

If you would like the names of a few brokers who I trust and recommend, please shoot me an email Gail@GailGladstone.com and I will be happy to supply you with contact info.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Thu May 28, 2009
Why not rent and save your money until you can buy outright with no banks involved?

Rent rates are going down as are house prices?

How could you lose?
0 votes Thank Flag Link Thu May 28, 2009
I would HIGHLY recommend a mortgage broker! It might cost a bit more upfront, but in the long run, those costs will be greatly mitigated by even a fraction of a percent decrease in interest rate.
Tim
0 votes Thank Flag Link Thu May 28, 2009
0 votes Thank Flag Link Thu May 28, 2009
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