A talk on the mortgage for the buyer time first home?

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My husband and I are ready to buy our first home. My grandmother sold her house with 3 rooms and is perfect for us, but we are completely clueless! We never bought a house and not have our parents, so we do not know what to do. Where shall we go to see if we qualify for a loan? If our basic bank will be able to help us or are we in a major mortgage lender? Thank you for the help!

  1. Reply
    January 25, 2011 at 4:05 pm

    Yes check with your bank that has your checking account

  2. Reply
    Wayne Z
    January 25, 2011 at 4:30 pm

    I ended up just going with my regular bank.

    They lowered the rate by 1/4 point because I opted to have my payment directly debited from my checking account.

  3. Reply
    January 25, 2011 at 4:58 pm

    Here is a summary of my personal experience:

    When I first considered getting a loan I went to my local bank. I was given some information about who to contact reguarding a home loan because they said most local banks don’t deal with home loans any more just the larger mortage companies…especially if you are a first time buyer.

    I think part of my problem is being rather young also because I went to a couple other banks after that and was basically told I probably didn’t have enough credit to get one because I was too young.

    I found a realator that I knew (went to school with him so he was close to my age) and had him help me look for a house. He set me up with someone he knew that helped me with the financing and I had no problems!

    It may cost a lil money but maybe a realtor if you know one would be a good route because they know the whole deal about buying a house and are working for you and if they’ve been doing it a lil while may have “connections”. Also consider getting a home inspection before buying even though it is a realitive….the house may have faulty wiring or pluming and know one knows it. It would be devastating to just buy a new house and then have to spend ALOT of $ fixing things you didn’t plan on.

  4. Reply
    Dan B
    January 25, 2011 at 5:17 pm

    Before you even look for a home, get pre-qualified for the loan. Find out how much a lender is willing to loan. Then you’ll know how much house you will qualify for. If granny is selling her home for $ 200k and you only qualify for $ 150k, you’ll have to come up with another $ 50k or look elsewhere.

    Work with your regular bank. They have access to the same money that bigger banks do.

    You probably should work with a real estate agent or real estate attorney. There’s a lot of legal paperwork in transferring ownership between buyer and seller. Title searches, insurance, lien releases and more than I know about.

    If granny owns the house free and clear, maybe your bank can help in this area.

  5. Reply
    January 25, 2011 at 5:24 pm

    There are some pretty good reading material reference sources. Start there and understand the process. Lenders are varied and not at all equal. However with the recent economic climate changes, almost all of the money comes from the government and all mortgage companies pretty much get their money from the same sources now. Investigate mortgage rates and also look at least one local Credit Union for comparisons. Credit Unions lend their own money (their “members” money actually) and don’t “sell” your mortgage to another company. You borrow and stay with them, usually at a good rate and usually with a more personal and realistic look at your credit history. They are subject to less credit requirements as it is their money. That means you too are less restriced as a borrowwe. There are four parties involved with the sale of the house usually. The buyer, the seller, the mortgage company and an “underwriter”. The underwriter is the unbiased party that assures the deal is legal, meets federal and state requirements for home loans and also that the buyer and seller are fully aware of the contents of all that damn paperwork you have to sign. Find a local, independent, underwriter and pay for some of their time. Have a list of questions ready when you meet with them. They can be amazingly informative as they are trained to spot cloak and dagger paragraphs and alert you to what you are agreeing to in the written documents. Finally, always ask this question when the banker other lender starts talking all the mumbo jumbo of rates, points, APR versus actual percent of loan, etc. “How much will my payments be and for how many years”. That is the single question that should let you know if you have the best deal or not. Do not be put off or dissuaded from a plain answer in language you uunderstand. Good luck and eenjoy your new house!

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