I’m a first time home buyer. Should I get a loan through a bank, credit union, or mortgage company?

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I need to get pre-approved, but I’m unsure of where to start. I have my finances in order, and am ready to have someone try to approve me. Based on your experiences or knowledge who can give the best rates, and who is most likely to approve me?

i would like to buy a house this year but I have never done that before. I have been told that going through a credit union is better than bank of america, which is where i have my accounts right now. so i’ve been looking up credit unions to open an account with, just wanted to know if they were all the same, or if some were better than others. if you have any advice on buying a house for the first time, that would be nice too.

  1. Reply
    real pro
    February 13, 2011 at 11:02 pm

    Most of the aforementioned companies all sell your loan in the same market, to wholesale mortgage lenders. Consequently, the rates, terms and costs don’t vary by all that much. Which is why you should check out all 3. Get the offer in writing, along with all closing costs, then compare. Once you narrow it down, ask how long it will take to get pre-approved and if there are any upfront fees like application fees, etc. You can usually find a lender who will offer a free pre-approval. Once you have your pre-approval, you are ready to find your new home.

  2. Reply
    G N A
    February 14, 2011 at 12:00 am

    If you are a member of a credit union, this would be ideal because of the rates and service you’ll get. Then the banks and unless you really can’t wait to buy, the mortgage company (who will shop your credit information to the very same banks you can probably get a better rate with if you went on your own.)

  3. Reply
    February 14, 2011 at 12:42 am

    Don’t be fooled by the people that tell you that. Credit unions may be good at auto loans or personal loans but they generallly don’t have the capital to be able to compete with the larger lenders when it comes to mortgages.

    I am no huge fan of B of A but I almost guarantee they will have more programs at better rates than your credit union will. Shop around with many sources to determine what is best for you.

  4. Reply
    February 14, 2011 at 1:26 am

    Going through a credit union is no different from going through a bank or mortgage company, whatever you’ve been told. In fact it often takes alot longer to get through the process with a credit union.

    If you’re a first time buyer you might consider attending a free seminar so you have the facts. They are offerred by cities and non-profit organisations (like Acorn) all over the US and usually last 4-6 hours. They are usually free and well worth the time. Then you can plan your purchase with factual information.

  5. Reply
    February 14, 2011 at 1:47 am

    No matter whether you go through a bank or Credit Union, you will need to shop lowest interest rates. C.U. usually have lower interest rates for mortgages. BankRate.com is a good source for discount mortgage companies, with interest rates/APR quotes, along with their contact information. Another thing to remember, the ‘interest rate’ is NOT the most important piece of information, but the APR is, then the PITI, (Principle + Interest + Taxes + Insurance.) Why? All the closing costs are figured in AFTER the interest rate is quoted. You are really paying the APR not the interest rate amount. PITI is the total cost of everything a normal R.E. Purchase has built in it. Being a young person, I recommend your tell them you want the mortgage,
    “Escrowed” when financing. This means all your taxes and insurance are included in your mortgage and you won’t have to worry about paying a bill for $ 2400.00 or more around the end of the year. Makes Christmas nicer too.

  6. Reply
    February 14, 2011 at 2:30 am

    Just go to a bank that sells to many different lenders so you have many options of loans.

  7. Reply
    February 14, 2011 at 2:35 am

    consumers kalsee if you have those in your area but if you want to make some extra money go to yuwie and type in 502738

  8. Reply
    February 14, 2011 at 2:48 am

    So you think that you’re ready to buy your own home? Hopefully you’ve done a little research online to make your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your new mortgage. This is now more important than everloan application. The mortgage broker will also run your credit. With all this information in hand the mortgage broker will see if you have enough income for the price of the home that you would like to purchase.

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