A word of caution to all first time home buyers?

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I am a first time home buyer. I applied for a internet loan for a mortgage. You know the deal you get multiple offers. I almost made the BIGGEST mistake of my LIFE! Because like a fool I did not check MY credit report myself BEFORE applying to know exactly what I was working with. I was offered a 2/28 ARM. I was told my credit was bad intrest rate was 8% with APR at almost 12. Then to make matters worse the finace company told me my credit score had gone down and they could not do 100% only 95%. It was one thing after another. When I applied they discouraged me NOT to go with a broker that my realtor worked with. The fees and points they charged me were unbelievable. As a last resort I DID approach the broker my realtor used and guess what? My credit is not bad and I qualified for a 6.5% 30 yr fixed no points nothing! Moral of my story is this no matter WHAT they say check around, compare and run your credit report yourself. They lie I am proof of this. Beware!

8 Comments
  1. Reply
    Mary S
    April 29, 2011 at 11:21 pm

    thanks for doing the legwork for me..

  2. Reply
    suga_suga
    April 29, 2011 at 11:55 pm

    Wow unbelievable! Thank you very much for that info as i am looking to buy my first house at the moment! Your a life saver!

  3. Reply
    silkeng
    April 30, 2011 at 12:26 am

    Thanks for the info. I’m trying to buy a house and that helps.

  4. Reply
    robert KS LEE.
    April 30, 2011 at 1:21 am

    thanks ur advices.

  5. Reply
    ISOintelligentlife
    April 30, 2011 at 2:21 am

    I had one of them try to talk me into a 40 year loan with a 16.9% APR fixed rate with a balloon payment of $ 10,000 due in 10 years.

    Considering that I had already been offered a 30 year fixed rate of 6.85%, that conversation didn’t last very long.

    They can say anything they want. It’s definitely buyer beware out there!

  6. Reply
    Adam B
    April 30, 2011 at 2:48 am

    Word of caution when buying a home and shopping for a mortgage. NEVER get a mortgage online. You shop online for CD’s, DVD’s, books, etc. You don’t spend 200K+ without being able to see someone face-to-face.

  7. Reply
    Zeki A
    April 30, 2011 at 2:55 am

    Go to your local bank or credit union talk to them in person to get loan from them.Make sure how much loan you can worth and how much monthly payment you can pay before you making deposit to buy your house.Also it is very important that house price ,try to buy house lowest price possible because you can refinance but you can not change house price for ever that is with you until you pay off.Other think you are first time house buyer bank , Realtor , loan broker should inform you that first time house buyer gets low interest rate or 5% down payment free one or other you chose.if you need more help you can contact me zasomersetmass@
    yahoo.com

  8. Reply
    satarnag
    April 30, 2011 at 3:53 am

    Very good advice. You should run your own credit with FICO scores and shop around.

    Regards

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