help! first time home buyer

What do we do? Should we get approved first? How do we pick a bank? . . . . How much should we put down?

We really have no clue

thanks

Re: help! first time home buyer

We just started the process...a family friend is a RE agent and she gave us a rec for a mortgage broker. We got pre-approved so we knew what our price range was and then sat down and talked with our agent about what we wanted.

Hope that helps...good luck!

Re: help! first time home buyer

Thanks Ilana!

Re: help! first time home buyer

Don't use bank of america...

Re: help! first time home buyer

Get a good mortgage broker, get pre approved, then hook up with a buyers agent so u can start looking - good luck

Re: help! first time home buyer

first i figured out how much we could afford by going online and inputting info on an online mortgage calculator. Based on how much you want to put down (ex- 20%) and the price of the house (i played around w/ different #'S) it will tell you how much your monthly payment would be (just keep in mind there will be your taxes too). Then we started to go to Open Houses in areas we narrowed it down to in our price range (some higher, some lower) to get a sense of what we liked and didn't like. We ended up getting touch with a fantastic realtor by meeting her at an open house and eventually she showed us our house we have now. We also used a mortgage broker. good luck!

Re: help! first time home buyer

Figure out what you can afford monthly to determine your price range. Find a mortgage broker then get pre-approved. I also recommend getting a buyer's agent as well.

Re: help! first time home buyer

You should definitely get preapproved first. You need to know how much you can afford so that you are looking in the right price range and not wasting time. Also, when you find a house you want to make an offer on, a seller will not take your offer seriously if you cannot show you can get financing. You will definitely need to present your preapproval letter with your offer.

I would suggest consulting with a few different lenders to find out what type of loan would work best for you and get more information about their process. Then, you can select one you are comfortable with, but keep in mind that you are not obligated to use the lender who issues a preapproval letter to you. Lenders give complimentary preapprovals, but when it comes time to apply for a mortgage, you can always decide to use someone else. There are direct lenders out there, as well as mortgage brokers, and there are advantages to both, so you may want to talk to both types to see what works best in your situation. Let me know if you need any recommendations.

I wouldn't recommend relying solely on the online mortgage calculators to figure out what you can afford. A monthly payment will depend a lot on your interest rate (which depends on your personal circumstances and they are fluctuating all the time), your down payment, what type of loan you get and whether you need to pay mortgage insurance, plus, you will need to factor in taxes (so you should have an idea of average taxes in the areas you are looking) and homeowners' insurance. A good mortgage professional can give you a much better idea of your monthly payment.

As far as down payment, again, it depends on what you can afford. You can put as little as 3.5% down with an FHA loan, but you will pay mortgage insurance. With a conventional loan, you can go as low as 5% with the banks, I use, but again, you'd be paying private mortgage insurance and not getting the best rate. If you put 20% down with a conventional loan, you don't have to pay mortgage insurance.

You should also select a real estate attorney that you will use, because once you make an offer, the attorneys start working on the contracts. You will also need to have a home inspection done as soon as you make an offer, so you may want to research engineers/inspection companies.

It helps to work consistently with one realtor who knows your needs and can answer your questions and just generally make the process easier for you. I work all over Long Island, but mainly in Nassau on the south shore and center island areas. I am a full-time realtor and an attorney, so client service is really top priority for me. I'd be happy to help you, even just to answer some questions - - no obligations.

Good luck! House hunting can (and should) be a lot of fun, especially if you understand the process.

Re: help! first time home buyer

Also FYI, if you receive an FHA loan you only have to put down 10%, but you will have mortgage insurance to pay until you've paid up to 20% of the price.

Re: help! first time home buyer

we did not use a mortgage broker (or an REA), and went with bethpage. overall we found they had the best rates and customer service.
we put down about 35%, which really helped keep the monthly payments somewhat reasonable.
good luck!

Re: help! first time home buyer