What types of home loans, we can get?

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I try to do research on home loans and purchase a home. We have good credit to high-700S. First time buyers … few questions to start … 1 What types of loans are the best? 2 To watch this? 3 Are there things, real estate brokers or mortgage companies try as they not responsible? 4 can give you a loan worth more than the house and use the extra money for other expenses? such as furniture and other things for Haus.5. Tips and tricks to ensure that we are not always stupid? 6 What we need for a good interest rate to qualify? Seventh how could we get? Any other information you can give would be great! thank you very much!

6 Comments
  1. Reply
    Nick R
    May 4, 2011 at 12:56 am

    There aren’t really any exact answers to your questions. Every mortgage company brings something different to the table, and they all have their pros and cons. Since you are a first time buyer though, there are some programs out there to help you out. You can find some information about them at the link below:

  2. Reply
    ♥~*Momma Bear*~♥
    May 4, 2011 at 1:03 am

    You should get a FIXED rate loan. None of this adjustable crap. Only borrown what you need, why do you want to be in more debt then what you have to? That makes NO sense.

  3. Reply
    loanmasterone
    May 4, 2011 at 1:18 am

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

    Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some use to you, good luck

    “FIGHT ON”

  4. Reply
    stacynicole83
    May 4, 2011 at 1:32 am

    Get a VA loan. The interest rate is low, and get a fixed rate mortgage. Ajustable rate mortgages are the main reason people are losing their homes right now.

    Read ALL of the paperwork, get a real estate agent and pay to get your own appraisal on the home, the bank will have their own appraiser and it will always be appraised at the amount they’re asking. If anything in the paperwork looks strange or you don’t understand it, make sure you ask.

    You want to get pre approved for a loan before you find a home. That way, you will have a loan amount with payments you can afford, and you will have an amount set and can look for a home in that price range.

    It sounds like a lot, but it is worth it. The agent will be your best asset when buying a home! They will make sure you are not missing anything.

  5. Reply
    KN
    May 4, 2011 at 2:14 am

    Fixed rate loans are the best. I would go 30 years if cash is going to a problem. I would get a plain conventional mortgage. You have to be very careful with junk fees etc. Everything is negotiable. Really, the main thing is: do you have enough money for a decent down payment and the closing costs? Can you come up with like 25% of the cost of the house? 20% for a down payment and 5% against closing costs? If you can’t then I would consider waiting and saving some money and then going after a new home. The reason people get into trouble is that they don’t have enough equity in the home to start with and their rates are high and can’t afford the payments. If you put up less than 20% down you have to pay private mortgage insurance. It is very expensive and money that just goes up in flames. If you purchase a house, get one that you can truly afford.

  6. Reply
    Bobby W
    May 4, 2011 at 2:57 am

    1. Fixed rate, low or no points
    2. ARM loans, high interest rates, high points
    3. I’ve never heard of such a thing. They don’t take money from you, they take money from the seller.
    4. I guess you can, but you have to pay taxes on it. Kinda unwise.
    5. I don’t know what the problem is that you think that?
    6. Paperwork and a loan at the bank BEFORE you start shopping.
    7. I don’t know, I don’t know what kind of money you have or make.

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