Home Buying in Austin>Question Details

Whattodo512, Home Buyer in Austin, TX

What would be a good mortgage loan product to start with in buying a first home?

Asked by Whattodo512, Austin, TX Fri Apr 13, 2012

My wife and I both have credit scores of 760 . Combined, our income is high enough to disqualify for FDA or down payment assistance. I want to know where to start and if it is best to look now, or wait a few months to ensure we have at least a 20% down payment. We are looking for the best possible options.

Help the community by answering this question:


I would suggest you contact a lender who will discuss your future plans...how long you plan to stay in the home, etc. I would highly recommend Cindy Swannack at CS Mortgage (512-486-6092). She will find a product that best fits your needs. She has helped dozens of my buyers and they have all been very happy with her customer service!

If you need help finding your new home, I'd love to meet with you and discuss what to expect from house hunting to closing. I've been an exclusive buyers agent for 7 years and my services are FREE to you.

Good luck with your decision,
Gina Nyland
1 vote Thank Flag Link Fri Apr 13, 2012
After checking all the other loan products mentioned below, look into doing a First Time Home Buyer loan with BBVA Compass Bank and do the comparisons. It requires a 5% down payment (All funds, including the down payment, can be gifted to you by a relative), there is no PMI, and the rate is in the low 4's with your mortgage payment being auto-debited from a Compass account. At closing, we will collect 3 extra months of tax/insurance escrows, but you won't have a payment for at least 4 months (Close in May - first payment not due until October 1). This gives you a lot of time to recover your initial investment. Without the Upfront and monthly mortgage insurance associated with FHA, you will save a considerable amount monthly over doing an FHA loan. If you have any further questions, feel free to email me at bill.merritt@bbvacompass.com.
0 votes Thank Flag Link Mon Apr 23, 2012
Make sure you check into the loan that is 5% down with a 80% first mortgage + 15% 2nd mortgage. I'm told by the mortgage lenders that this product is now better than an FHA 3.5% down loan because you don't have to PMI and you will save money.
0 votes Thank Flag Link Sun Apr 22, 2012
Dear WhatToDo512,
I would contact several lenders to see how they compare on rates and other fees. You should really consider the bank or credit union that currently handles your money. Often they have special programs for their current clients. There is no need to go to another institutuion if you like your current financial institution. Make sure you are pre-approved before you begin shopping for homes as it can be difficult to fall in love with a house and loose it because your not prepared and another buyer is. Have a budget and a plan. Also if the bank approves you for $350K, I advise not to spend the full amount. I would look for homes at $300K. You may want to take a vacation or send your child to college. Won't live only to work to pay a big mortgage. I wish you luck!


Betina Foreman- Realtor, C.N.E.
Austin Home Girls Realty
0 votes Thank Flag Link Wed Apr 18, 2012
For well qualifying customers, the best thing to do is get prequalified with a reputable bank/direct lender like Bank of America or Wells Fargo and for comparison purpose, take that prequalification to a Morgtgage broker and see if he can beat it by shopping around for you.
0 votes Thank Flag Link Sat Apr 14, 2012
There are some conventional loans out there where you only put 5 percent down.

At Coldwell Banker we have an onsite mortage representive that can assist you. Here name is Michele Viera.
You can contact her by her cell phone 512-350-6041, email-michele.viera@mortgagefamily.com
or preapprove online at http://micheleviera.coldwellbankermortgage.com.

If I can assist you on your home search ,please let me know. I work with alot of first time home buyers.
0 votes Thank Flag Link Sat Apr 14, 2012
I would like to add 2 thoughts to the great advice given by other professionals here:

1) Find a lender (mortgage company or bank) that has a variety of loan products to offer and local or regional underwriters to ensure a smoother closing process.

2) You probably already know this, but having 20% to put down on a home purchase eliminates a huge up front closing cost and reduces your monthly mortgage payment by about $80-$150 per month, depending on the amount of the loan.

I have some excellent local lenders that can advise you which options are best for you - let me know if you'd like to speak with them and I can forward their contact information to you.

Best of luck - I'd be honored to help you achieve your goal of home ownership!

Kim Stanley
Web Reference: http://www.Team1Austin.com
0 votes Thank Flag Link Fri Apr 13, 2012
Best to contact a mortgage broker for your options Keep in mind each year you own a home you receive annual tax benefits

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
0 votes Thank Flag Link Fri Apr 13, 2012
Depends on how much you want to put down.
There are not a lot of options.

You will likely end up with a plain old vanilla Conventional Mortgage.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Fri Apr 13, 2012
It all depends on whats imortant to you. There are many different loans available that will provide you different outcomes. For example, If coming in with as least money as possible, you would be leaning towards an FHA. With that though, you would receive a premium mortgage insurance and a slightly higher monthly mortgage. There are also convential, USDA, Va loans. I would love the opportunity to sit with you and your wife to discuss what is important to you both. As a first time home buyer, I find it helpful to help educate my clients along the way. Call me and we can sit down and I can assist you through this exciting process. My number is 512-487-9325
0 votes Thank Flag Link Fri Apr 13, 2012
I would highly suggest you speak to a few lenders and see what kind of products they each have to offer. With your credit score there will be many different options for you. I do have a few lenders who will talk to you and assess your situation with no obligation or charges to you if you'd like to speak with them. Also, I am a top rated Residential Specialist here in Austin and do not charge for my services if you are not yet working with a Realtor. I have a great team that works with me, and can set you up with a host of various tools to help you find just the right home for you and your family. Feel free to click on my name to the right and review my Credentials and Client Testimonials, and get in touch with me if I may be of further assistance! Joe Jarusinsky, Keller Williams Realty, Austin's #1 Real Estate Company, 512-261-4415
0 votes Thank Flag Link Fri Apr 13, 2012
Call, we have a lender that is paying closing costs for their first time home buyer clients. There are all types of scenarios out there, a lot depends on where you want to be, your income and your employment.

Sonia Roberts, Realtor®
Canady Realty

"A satisfied customer is the best business strategy of all."
Michael LeBoeuf
0 votes Thank Flag Link Fri Apr 13, 2012
USDA mortgage would be a good start for a 1st time home buyer however there are restrictions. It is a no down payment program and uses the current interest rate with no mortgage insurance. You will need to talk to a mortgage lender to find the best program for you. The lender I use is PNC Lending, Chris Keefer, 512-261-5002, http://www.ChrisKeefer.com

If you are still searching for a home, feel free to setup a Listing Alert on my site, http://www.LagoVistaAreaHomes.com . Check the search criteria that you want (uncheck the items you don't want) and then any listings that match your search criteria will be sent to you automatically. When you find a property that you have questions about or you may want to see, just contact me. Or if you prefer, send me your search criteria and I will set it up for you.

What else can I do to help?
0 votes Thank Flag Link Fri Apr 13, 2012
There are few options: Conventional: 5% or 10%. FHA: 3.5%. Now, if you do anything less than 20%, you will either have to pay a mortgage insurance premium(until your loan to value is below 80%) or a little higher rate than if you were conventional with 20% down.

I would be happy to discuss your home buying goals and the best financing options. Please feel free to contact me anytime.

Steve Nusinow
0 votes Thank Flag Link Fri Apr 13, 2012
Call Max - he can tell you everything you need to know. Please tell him Marsha sent you. Good Luck!

Max Leaman

Branch Manager/Sr. Loan Officer

PrimeLending, A PlainsCapitalCompany

4501 Spicewood Springs Rd. #1025

Austin, TX 78759




NMLS #: 151263
0 votes Thank Flag Link Fri Apr 13, 2012
The only other program that offers no down payment would be a VA loan, are you or your spouse a veteran? Otherwise, you can still purchase a home using FHA with 3.5% down, however there are loan amount limitations, or conventional with 5% down with a maximum loan amount of $417,000. If you are purchasing a home that would have a loan amount above $417,000, most lenders will require 20% down payment. I would be happy to give you more information.

Lea Shaw, NMLS License #224589
Pulse Funding of Texas, Inc.
0 votes Thank Flag Link Fri Apr 13, 2012
Its best to speak to a loan officer first, to get all your information and financials in place. Once you get the green light that can start home shopping, then its best to look at properties. The loan officer will also explain the best loans that are tailored for you and your financial situation/plan. I specialize with many first time home buyers, so I have some fantastic lenders I can recommend.

Good luck, and the great news is that you are on the right track to homeownership!

Cynthia Mattiza,
Realty Austin
512-940-5293 direct
0 votes Thank Flag Link Fri Apr 13, 2012
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