Buying first house

So my husband and I are getting ready to buy our first home. We have money saved and ready to get the ball rolling. I am not sure of our credit score, he had some issues that we are still paying for, and I don't think mine is that good, that being said, my father will most likely co-sign with us, which I am fine with. I am just not sure how to get the ball rolling.

What do I do? I go to a bank or a mortgage broker to see what we pre-qualify for, then go from there?

Re: Buying first house

step 1 is to get pre-approved

this way you know what you are looking at as a monthly payment

I would be happy to recommend a few people- I have one banker who is amazing at harder situations

FM me if you would like her info!

next step would be to find a realtor...I might know one of those

I normally set up my new buyers with listing book and have them start leaving me notes

from that we set a first appointment where I really explain the process etc

good luck!

Re: Buying first house

I would definitely consult with a mortgage lender to discuss whether you can qualify for a loan (if not, they can tell you what you need to do in order to be able to -- in terms of credit repair, savings, paying off debts, etc.) and how much you can qualify for. I know that, even if you have a willing co-signer, there are rules that apply (and a non-occupying co-signer can't always get you past bad credit, but they can sometimes get you over the hurdle if you are a bit shy of the necessary income).

But a mortgage professional can discuss all of the ins and outs -- various loan products, interest rates, whether you would need mortgage insurance, etc. The key thing to think about -- aside from what you can qualify to borrow -- is what you can afford. And for that, you need to look at what the monthly payment (of principal, interest, taxes, and homeowners' insurance) will be at various price points, taking into account interest rate, taxes, and other factors. A good mortgage pro can advise you on that.

Also, I think it really helps to consult with a real estate agent at the outset. I always conduct an initial buyer consultation with any buyer I work with, and I think my buyers (esp. first time buyers) always find it valuable. I explain the entire home buying process, what steps the buyer should take to prepare to buy a home, advise on how to get a team of professionals in place (attorney, inspector, etc.) to assist you with your purchase, explain how I work, listen to the buyers' home buying needs/criteria, and answer questions.

I recently posted a blog about how a home buyer consultation can help, if you want to check it out.

Let me know if you would be interested in chatting with me some more. I don't know where you are looking, but I pretty much work all over Long Island. There's no obligation or cost to meeting with me, so at the very least, you can get some free info! You can reach me via FM or at [email protected] or (516) 587-7618 (cell).

Hope this helps!

ETA - Blog Link:

http://www.lifamilies.com/blog/index.aspx?P=1&Username=Century+21+Dallow+-+Christine+Braun

Message edited 4/13/2012 3:27:41 PM.

Re: Buying first house

we just bought our first home..have fun with the process!!

this is what we did:

look at what we could comfortably afford with not only with the mortgage and taxes, but with monthly bills as well...car insurance, cell phones, gas (or oil), water, electricity, food, savings, etc.

we got a pre-approval with a bank, but then ended up using a fantastic real estate broker

looked up homes on mls..we had pretty specific requirements we were looking for, so we had a very limited amount of houses to actually look at

good luck!!

Re: Buying first house

I agree with the suggestions posted by Christine above. I am an attorney who handles real estate transactions if you have any questions about the process. Please feel free to give me a call or send me an email, I would love to help if I can. Good luck!

Kristen M. Breglio, Esq.
The Breglio Law Firm, PLLC
1225 Franklin Avenue, Suite 325
Garden City, New York 11530
p: 516.240.8033
f: 516.240.8032
www.thebregliolawfirm.com

Re: Buying first house

While you are getting preapproved make sure you discuss what you can afford. We didn't want to be housepoor and made sure we could swing our monthly expenses. We estimated everything including lawn care treatments, heating etc. We also got creative on cutting expenses. We don't have smartphones but we still have plenty of internet (unless you need those phones for work) and we have basic fios, use netflix for movie nights at home and entertain at home more. But first you need to figure out what you can afford.

Re: Buying first house

We looked through our finances, took a look at what we could afford, found a realtor, got pre-approved, and began the hunt. I know a great realtor and banker let me know if you want their info.

Happy Hunting.

Re: Buying first house

Well last week I applied for pre-approval, I am going to see how that goes. I was just never sure do you go to the bank? A mortgage broker, my credit union had sent me a thing for low rates, so i gave it a try, I have my car loan through them so figured it was a good way to go. Now it's just waiting to see what they say. We have sat down and saw what we can afford, we ideally want the Levittown, Island trees area, so I am going to be looking and waiting for a house in that area.

Re: Buying first house

Mia - You can go to a large commercial bank, a mortgage bank, a credit union, or a mortgage broker to get preapproved. Be careful about rate advertisements -- banks often advertise "teaser rates" that only apply to a very small piece of the popluation. In reality, the rate you get depends on the type of loan product you get, your personal financial qualifications, etc.

In terms of who you ultimately use, I personally think your best bet is either a specialty mortgage bank or a credit union. In my experience, a smaller mortgage bank with a local presence tends to provide better customer service and the process tends to be quicker and smoother. Credit unions often provide low rates and sometimes lower fees, but the process can be very slow, and they tend to be very conservative (when it comes to things like making sure all COs are in place, etc.) which can slow down the process a bit.

The larger banks aren't really making their mortgage business a priority anymore, and don't tend to provide the same level of service. I've had recent experiences with big banks where they were both difficult and slow. It's hard to explain to a mortgage guy sitting in Arizona about why it's customary for single family homes on Long Island to have a second kitchen, and things like that. Often, the larger banks don't even have loan officers as the loan originator, but less knowledgeable clerks.

If you are looking in the Levittown/Island Trees area, I often recommend Steve Simpson of U.S. Mortgage Corporation. His office is on Hempstead Tpke in Levittown and he is very knowledgeable and accessible. Several LIF'ers have used him and been happy with his service, so you can do a search for his name. But here is his contact info:

Steve Simpson, Senior Loan Office
U.S. Mortgage Corporation
Office: (516) 408-4488
Cell: (516) 384-8368
[email protected]

I am very familiar with Levittown and Island Trees -- my mom grew up in Island Trees and I have family there. My office does a lot of work in Levittown as we used to have an office there and still have a big presence in the community. I am based in N. Bellmore, so in a neighboring town. Just let me know if I can help you!