[recstar24]

My wife and I are currently in the process of purchasing our 1st home. Very exciting, but also very scary. We have a couple of homes that we are contemplating making an offer on, but the scariest part is dealing with brokers and lenders in securing a mortgage loan.

We have consulted close family and friends that are in the business, and have done a fair amount of shopping around looking for the best broker/lender that can serve our needs. Just wanted to throw this thread out there to fellow head-fiers that could chime in with their advice and experience in helping us secure a mortgage loan during this crazy transition in our lives.

 

[thread]

Quicken Loans (http://quickenloans.com/) is an excellent mortgage lender. Yes, I work there, but we really do serve our customers as few lenders can. We get amazing feedback from our customers who are so happy with their experience.

Our competitors are going out of business while we hire 100+ folks every month! The housing market is "in the pooper" yet March was our biggest month in history!

 

[RYCeT]

How is your credit score (yours and your wife)? According to my experience, if you got good credit score, you'll be better off sticking with a national bank (Bank of America, Wachovia, HSBC, etc) and ask them for special program for 1st time home buyer. There'll be more documents, time however you'll do get a better rate and lower down payment requirement.

 

[Jon L]

Right now is a very tricky time to buy homes and obtain mortgages.

If at all possible, track down a mortage person, a specific person, whom you have dealt with before or other people you know are personally referring to you. There are lots of hidden tricks and clauses in a mortage that can royally scr** your decade without you finding out about them anytime soon.

Another good option to keep in mind is this. Very recently, some banks such as B of A have started offering REAL "Zero Cost" loans. This is not your average "zero fee, low rate" loans being advertised by fly-by-night "loan companies" on radio. The former is legit; the latter usually have tremendous hidden catches in them. You just walk into your local B of A office and ask to talk to their loan officer for the "zero cost loan." You won't be able to get those ridiculously low rates some iffy companies advertise (falsely), but the lack of fees is tremendous and will save you $15K easily.

 

[ecclesand]

I agree with earlier posts....unless you know a trustworthy Mortgage broker, you're better off sticking with some of the larger companies like CountryWide, Washington Mutual, B of A, Wells Fargo, etc. In most cases, when going with the smaller banks that the Mortgage brokers usually use, your mortgage is sold immediately and purchased by the larger banks. This is a common practice in the industry and you will actually sign a document acknowledging it during closing.

Very exciting stuff. I'm in my early 40s and have bought and sold six houses in my lifetime and I still get nervous when dealing with the financial institutions.

Good Luck and Congrats!

 

[laxx]

If both you and your wife have good credit scores, aren't planning on getting a mortgage that will cost a huge % of your income, and you do your research, the best rate you'll get is directly from a bank. Don't bother with Mortgage companies if you fall under those conditions.

I have many loan officer friends at Fairfield Financial and I personally work for Fidelity Mortgage.

 

[mrarroyo]

Quote:

Originally Posted by RYCeT /img/forum/go_quote.gif How is your credit score (yours and your wife)? According to my experience, if you got good credit score, you'll be better off sticking with a national bank (Bank of America, Wachovia, HSBC, etc) and ask them for special program for 1st time home buyer. There'll be more documents, time however you'll do get a better rate and lower down payment requirement.

True. Also closing costs are usually about 5% of the loan ammount plus it can take 30 to 45 days to close after your offer is accepted. You may want to make your offer contingent on:

1. Being able to secure a XX year loan at no more than Y intererst
2. Being able to obtain insurance for the property

I hope if the house is used you hire a home inspector that is not associated with a construction company. Finally check that the property is not in a flood zone and for God's sake hire an attorney to cover your butt.

 

[recstar24]

Quote:

Originally Posted by mrarroyo /img/forum/go_quote.gif True. Also closing costs are usually about 5% of the loan ammount plus it can take 30 to 45 days to close after your offer is accepted. You may want to make your offer contingent on: 1. Being able to secure a XX year loan at no more than Y intererst 2. Being able to obtain insurance for the property I hope if the house is used you hire a home inspector that is not associated with a construction company. Finally check that the property is not in a flood zone and for God's sake hire an attorney to cover your butt.

Thanks for the advice - all the above things we have checked on our offer letter already. #1 and #2 is secured. Home inspection clause also in the offer contract which will be our next step. Also in the state of illinois it is required that the clients have attorneys present at closing, we also have a clause written in the contract that requires attorney approval.

I have a meeting with a broker who is a relative of a close friend, and will explore going to a national bank. My wife and I do have excellent credit scores and have lots of money invested in Chase, so I will talk to the rep there. Thanks for the advice guys, keep it coming.

 

[n_maher]

If at all possible speak with a financial person outside of the mortgage process like a personal financial adviser to try and figure out what is a realistic monthly payment for you and your wife. You may have already done this but the reason that I bring it up is when my wife and I were meeting with our Mortgage Rep we quickly learned that odds are if you've been financially wise, as it sounds you have, you're likely to get approved for a lot more money than you think you can afford. We chose to stick with our own limit and not the largest mortgage we could get approved. This means that we can comfortably (well, sort of

) afford to pay our mortgage, taxes, insurance, etc. and not be scraping by every month.

Never forget that poop happens and that poop can be expensive. Two months after we bought our house the heavens decided to drop golf-ball sized hail on my wifes car and destroy it. That little episode cost about 5 grand and meant additional debt when we had to replace a car that was already paid for and we were planning to keep another 3 to 4 years.

Best of luck, it's a very exciting process and worth the inevitable hassles.

 

[Blitzula]

1. Get you loan in place BEFORE you pick out a house.

2. Make sure you know exactly what rate you're getting, or what that rate is based upon. I got surprised with a rate that was higher than my excellent credit score would have dictated...but I was too far in the process to get another loan.